Zimbabwe’s insurance sector recorded a robust recovery in 2025, supported mainly by strong growth in USD-denominated policies amid low local currency liquidity and improving economic stability, according to analysts at Morgan & Co.
Short-term insurance reached new highs, while long-term insurance began to rebound, although premiums in the latter remain below 2019 levels. Analysts attributed the sector’s overall performance to supportive macroeconomic conditions, including stable exchange rates and increased foreign currency inflows from exports and remittances.
2025 Performance Overview
Short-term insurance premiums grew at a slower pace due to tight monetary policy, which reduced vehicle purchases and consequently the demand for motor cover.
However, extreme weather conditions boosted uptake of fire-related insurance products. USD premiums dominated the short-term segment, reflecting customer preference for more stable cover and the ongoing shortage of ZWG for mandatory policies.
Key players in this space include Old Mutual, Zimnat, Nicoz Diamond, Cell Insurance and Alliance.
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Reinsurance premiums remained broadly flat but showed meaningful potential due to weather-related risks.
Long-term insurance recorded growth driven by USD policy conversions and wider investment opportunities, particularly exposure to Victoria Falls Stock Exchange-listed stocks and real estate. Funeral assurance continued to lead the segment, reinforcing Nyaradzo’s dominance, while competitors such as Old Mutual gained ground through new product offerings. Other long-term insurance lines lagged, partly due to uncertainty around contracts extending beyond 2030.
Overall, strong USD revenues underpinned the sector’s recovery, maintaining insurance alongside banking as key contributors to financial services GDP.
Outlook for 2026: Growth Opportunities and Risks
Analysts project continued growth in weather-related products such as hail, agricultural insurance and reinsurance, supported by consecutive La Niña seasons expected to boost agricultural output.
First Mutual Holdings is highlighted for its performance, benefiting from Nicoz Diamond’s short-term market dominance, an 8.3% dividend yield and potential upside from the separation of assets.
However, risks remain. Possible de-dollarisation beyond 2030, ongoing tight monetary policy and the likelihood of increased claims due to heavy rains could constrain sector growth.
Insurance counters underperformed on the Zimbabwe Stock Exchange in the review period. The Morgan & Co Insurance Index fell 54% over the past 52 weeks, driven by steep losses in First Mutual (-72%) and Fidelity Life (-61%), while Zimre Limited limited its decline to 20%.
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