Zimre seeks US$50m

LIVINGSTONE MARUFU

Zimre Holdings Limited (ZHL), a publicly traded diversified group, is seeking to raise US$50m to capitalise its reinsurance cluster, as it positions itself for deeper penetration across African markets.

The capital raise comes as ZHL accelerates the consolidation of its regional reinsurance operations, with Botswana emerging as a strategic launch pad for both regional and continental expansion.

The group currently operates reinsurance units in Mozambique, Botswana and Malawi, and is now moving into Côte d’Ivoire as part of a deliberate push into West Africa.

ZHL chief operating officer, Chakanyuka Nziradzemhuka, said the group is confident it can mobilise a significant portion of the capital internally through the optimisation of underutilised assets, while also tapping into capital markets.

“We want to capitalise the reinsurance cluster to the tune of US$50m, but we will bring it in different stages. Looking at the options we have outlined, each scenario will contribute towards that amount,” Nziradzemhuka said.

“If we can unlock idle positions, we can raise a significant amount from there. We can play with some of the assets we already have and potentially unlock up to US$15m. We can also go into the market either engaging existing shareholders who may want to participate, or bringing in new investors to raise another US$25m.

“So, it will be a phased approach. We are planning to raise between US$20m and US$25m this year, with the balance coming next year.”

The recapitalisation drive is expected to inject fresh, competitive capital into ZHL’s regional reinsurance units, enhancing their underwriting capacity and enabling the group to scale its brand across the continent.

It also forms part of a broader strategy to optimise the group’s insurance value chain, deepen ecosystem integration, and unlock synergies through partnerships both locally and regionally.

By strengthening its reinsurance arm, ZHL aims to improve control over premium flows, enhance cash productivity, and ultimately drive stronger, more sustainable shareholder returns.

ZHL delivered significant growth in revenue, profitability, and shareholder value for the year ended December 31, 2025.

Profit after tax surged by 196% to US$16.7m, up from US$5.65m in the prior year, reflecting improved operational efficiency and strong investment income.

Total income rose by 40% to US$122.16m, driven by a 33% increase in insurance contract revenue to US$82.41m, alongside a sharp 107% jump in net investment income.

The group’s balance sheet also strengthened markedly, with total assets expanding by 43% to US$298.28m, while total equity climbed 47% to US$89.08m, underscoring sustained value creation.

Basic earnings per share more than doubled to US$0.71 cents, from US$0.27 cents in 2024, highlighting improved returns to shareholders.

Operationally, ZHL’s diversified portfolio delivered strong performances across key segments. The insurance division recorded solid organic growth, particularly in regional markets, alongside increased new business in Zimbabwe.

Meanwhile, the property division posted a 45% growth in income, contributing 20% to total group revenue.

Navigating a complex operating environment

ZHL’s performance comes against the backdrop of a challenging macroeconomic environment, particularly in Zimbabwe, where high inflation and currency volatility persisted throughout 2025.

However, resilience in sectors such as mining and agriculture provided some support to economic activity.

Regionally, the group’s operations in Botswana, Malawi, Mozambique and Zambia experienced mixed economic conditions, which ZHL mitigated through its diversified, pan-African footprint.

This geographic spread has allowed the group to balance country-specific risks while capturing growth opportunities across multiple markets.

Board chairman Desmond Matete said the group’s performance reflects disciplined execution of its long-term strategy.

“Despite the improved yet still challenging macroeconomic environment, the group posted a commendable set of results for the year ended 31 December 2025,” Matete said.

“The strong performance was a result of the successful execution of our five-year strategy, which is anchored on consolidation, institutional strengthening and sustainable growth. The group is well positioned for 2026, with a renewed operational strategy, a strong balance sheet, and a re-energised team to unlock shareholder value.”

The group declared a dividend following the strong performance, reinforcing its commitment to delivering value to investors.

Looking ahead, ZHL remains anchored on its long-term strategic pillars of organic growth, inorganic expansion, and disciplined capital management.

The group is also intensifying its focus on operational efficiency through the adoption of digital systems and artificial intelligence, aimed at enhancing decision-making and improving customer experience.