First Mutual Holdings says customers continue favouring United States dollar-denominated insurance products to secure higher payouts at claim stage, prompting the financial services group to maintain a dual-currency approach across its businesses.
The group said US dollar-denominated income accounted for about 89 percent of total revenue in the six months to June 2026, up from 85 percent in prior comparable period.
The shift reflects customers’ preference for the US dollar, particularly because it provides greater certainty over the value of benefits payable when claims mature.
First Mutual said it would continue offering products in both currencies as it responds to changing customer preferences.
“Customers’ historical preference for the USD [includes] certainty in the value of benefits payable at claim stage,” the group said.
The development comes against a relatively stable macroeconomic backdrop, with inflation averaging 4.2 percent during the first half of the year.
The Reserve Bank of Zimbabwe reduced its bank policy rate from 35 percent to 30 percent in June, while maintaining tight monetary and liquidity management measures.
First Mutual said the combination of currency stability and continued US dollar dominance presented both opportunities and challenges for the insurance sector.
“While ZWG stability has reduced currency volatility and improved planning certainty, the sustained preference for USD underscores the need for the group to maintain a flexible and responsive product strategy,” the insurance group said.
The group is also accelerating investment in digital capabilities as it seeks to change how customers interact with its businesses.
Chief executive, Douglas Hoto, said First Mutual would increase investment in digital services and innovation to improve operational agility and customer experience.
“To solidify our competitive position, we are accelerating investments in digital capabilities and innovation,” he said.
At the same time, First Mutual Life continues to work with the Insurance and Pensions Commission (IPEC) to resolve issues arising from its forensic audit.
The company said its half-year financial statements incorporated adjustments arising from the experts’ findings, although discussions with IPEC remained ongoing.
“First Mutual Life Assurance Company continues to work with the Insurance and Pensions Commission (IPEC) to bring finality to issues arising from the FML forensic audit,” the group said.
First Mutual also reported that its investment property portfolio had reached US$150 million following significant revaluation gains.
The group said it would continue diversifying into real assets while strengthening its regional operations and adapting products to changing customer needs.