Fidelity Life Assurance of Zimbabwe Limited is accelerating its growth strategy after securing new funding facilities, including a US$2.4 million loan from AFC Bank, earmarked to finance the development of Stoneridge residential stands and strengthen lending capacity within its microfinance division.

The funding arrangement forms part of a broader strategic repositioning by the listed insurer, which is increasingly leveraging property development and financial services diversification to unlock new revenue streams.

In its abridged audited consolidated financial results for the year ended 31 December 2025, the company said the new credit lines signal a deliberate shift toward asset-backed growth initiatives.

“The Group has secured several new credit facilities, including a USD 2.4 million loan from AFC Bank, to fund the development of its Stoneridge stands and to bolster the lending capacity of its micro-finance business unit,” the company said.

The financing comes against the backdrop of a strong financial turnaround for Fidelity Life, with profit for the year rising sharply to ZWG204.5 million from ZWG44.7 million recorded in 2024.

Management attributed the performance to growth in insurance revenue and improved net investment income, which strengthened the company’s financial position and enabled renewed investment activity.

Total assets expanded significantly to ZWG3.87 billion, up from ZWG2.38 billion in the previous year, while shareholder equity recovered to a positive ZWG100.2 million after closing 2024 in a negative position of ZWG96.5 million.

The recovery reflects what the company described as successful navigation of a challenging economic environment through strategic adaptation and operational restructuring.

Improved profitability translated into stronger shareholder returns, with basic and diluted earnings per share climbing to 109.59 cents from 32.56 cents previously.

The board reinforced confidence in the group’s recovery by declaring a final dividend of US$300,000 for the 2025 financial year, equivalent to US$0.00028 per share.

Operationally, Fidelity Life implemented an IFRS 17-compliant actuarial engine during the year, enhancing financial reporting accuracy and risk management oversight.

“The adjustment of comparative figures reflects refinements in IFRS 17 valuation methodology and actuarial assumptions, demonstrating the Group’s commitment to transparency and adherence to evolving international financial reporting standards,” the company said.

Management noted that 2024 comparative figures were restated to reflect improved modelling approaches affecting insurance contract liabilities and retained earnings.

To mitigate distortions caused by hyperinflation, Fidelity Life adopted the United States dollar as its functional and presentation currency effective January 1, 2024.

The ZWG-denominated figures presented in the abridged report were translated from USD financial statements in line with guidance from monetary authorities and the Zimbabwe Stock Exchange, allowing for a standardised performance comparison.

Despite the strong recovery, the company cautioned investors about ongoing risks. The auditors issued a qualified opinion on the full financial statements, linked to enhancements in IFRS 17 modelling assumptions.

Fidelity Life is also engaged in litigation with CFI Holdings Limited concerning the acquisition of Langford Estates, a matter management said remains unresolved but manageable.

“The Group continues to refine its IFRS 17 reporting framework, which may have implications for future financial statements,” the insurer noted.

Fidelity Life said growth will be anchored on expanding property development projects, scaling up microfinance operations and introducing innovative insurance products such as the FLEXI-COMBO funeral plan aimed at widening market penetration.