Zimre Holdings (Zimre) has resumed recognising earnings from its 41,08 percent investment in CFI Holdings after the associate returned to profitability in 2025, marking a turnaround for an investment that had previously been fully impaired.
The insurer said it had stopped recognising losses from CFI after cumulative losses exceeded the carrying value of the investment, in line with international accounting standards.
“In prior years, the company’s share of losses in CFI Holdings exceeded the carrying amount of the investment. Consequently, the investment was reduced to nil, and further losses amounting to US$15,83 million were not recognised, in accordance with IAS 28 Investments in Associates and Joint Ventures,” Zimre said in its annual report.
“During the current year, CFI Holdings generated profits. In line with IAS 28, the group resumed recognition of the associate’s results only after the previously unrecognised losses had been fully offset.”
As a result, Zimre recognised US$2,78 million in profit from CFI and US$11,32 million in other comprehensive income during the year. The carrying value of its investment in associates increased sharply to US$14,21 million at December 31, 2025, from US$102 899 a year earlier.
The recovery supported a strong financial performance for the insurance group, with total income rising 40 percent to US$122,16 million, while profit for the year jumped 196 percent to US$16,7 million.
Zimre said it was entering 2026 with stronger fundamentals as it pursued expansion across Southern, East and Central Africa, as well as selected Common Market for Eastern and Southern Africa (COMESA) markets.
The group expects growing demand for climate-related insurance, microinsurance, digital distribution channels and infrastructure risk cover to create new growth opportunities across the continent.
Its short-term insurance business recorded a 173 percent increase in insurance contract revenue to US$4,9 million, driven by growth in credit insurance, bonds and guarantees.
The life and pensions unit posted a 111 percent increase in insurance contract revenue to US$16,6 million, while profit surged 318 percent to US$7,9 million.
“The cluster continues to pursue product diversification in line with evolving market needs and regulatory expectations,” Zimre said.
The property division maintained average occupancy of 86 percent during the year, with increased US dollar leases and turnover rentals lifting total income by 58 percent.
Meanwhile, the wealth management business grew total income by 30 percent to US$3,5 million, supported by stronger performances in asset management, actuarial services and microfinance.
“The cluster continues to strengthen its role within the group ecosystem by providing specialised investment, advisory and capital mobilisation solutions that support both business growth and financial inclusion,” the group said.