S&P Upgrades Freedom Finance Insurance to ‘BB’ as Market Position Strengthens

The insurer’s capital reached KZT 52 billion in 2026, while S&P forecasts annual net profit of KZT 11 billion–16 billion for 2026–2029.

Rhea-AI Summary

Freedom Holding (NASDAQ: FRHC) subsidiary Freedom Finance Insurance received an S&P upgrade of its long-term issuer credit and financial strength ratings to BB. The ratings rose from BB-, with a stable outlook; its Kazakhstan national-scale rating increased from kzA- to kzA+.

The insurer ranks third in Kazakhstan’s non-life insurance market, up from 11th in 2022, with a 9.7% market share. Capital reached KZT 52 billion in 2026, versus KZT 35 billion in 2025. For 2026–2029, S&P forecasts annual net profit of KZT 11 billion–16 billion and a combined ratio—claims and expenses relative to premiums—of around 90%. The agency expects risk-based capital adequacy to remain above its 99.8% confidence-level threshold through 2028.

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0 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointS&P raised the subsidiary’s issuer credit and financial strength ratings from BB- to BB, with a stable outlook.
• Minor pointKazakhstan national-scale rating increased from kzA- to kzA+.
• Minor pointNon-life insurance market rank improved from 11th in 2022 to third, with market share reaching 9.7%.
• Minor pointCapital reached KZT 52 billion in 2026, versus KZT 35 billion in 2025, including a KZT 8 billion injection in 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.S&P forecasts annual net profit of KZT 11 billion–16 billion for 2026–2029.

3 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.S&P forecasts a combined ratio of around 90% for 2026–2029.
• Minor point. Forward-looking: it has not happened yet and may not happen.S&P expects risk-based capital adequacy above its 99.8% confidence-level threshold through 2028.
• Minor pointInvestment portfolio consists primarily of Kazakhstan sovereign and quasi-sovereign securities, with an average rating of BBB.

Negative

• Minor pointCompetitive position still trails Kazakhstan’s two largest non-life insurers, in S&P’s assessment.

News Explained

S&P’s forecast that Freedom Finance Insurance will keep risk-based capital adequacy above the 99.8% confidence-level threshold through 2028 takes into account a KZT 8 billion capital injection in 2026.

Key Figures

Long-term ratings: ‘BB-’ to ‘BB’ National-scale rating: ‘kzA-’ to ‘kzA+’ Combined ratio forecast: Around 90% +5 more

Long-term ratings

‘BB-’ to ‘BB’

S&P issuer credit and financial strength ratings

National-scale rating

‘kzA-’ to ‘kzA+’

Kazakhstan national-scale rating

Combined ratio forecast

Around 90%

2026–2029 forecast

Annual net profit forecast

KZT 11 billion to KZT 16 billion

2026–2029 forecast

Capital

KZT 52 billion, up from KZT 35 billion

2026 compared with 2025

Risk-based capital adequacy threshold

Above the 99.8% confidence-level threshold

S&P expects it to remain above the threshold through 2028

Capital injection

KZT 8 billion

2026; included in S&P's capital adequacy assessment

Non-life market position

Third place; 9.7% market share

Ranked 11th in 2022

Key Terms

combined ratio, risk-based capital adequacy, issuer credit, quasi-sovereign securities

4 terms

combined ratio financial

"the agency forecasts a combined ratio of around 90%"

The combined ratio is a way insurance companies measure how well they are doing by adding up all their costs and claims and comparing them to the money they earn from premiums. If the ratio is below 100%, it means the company is making a profit; if it's above 100%, they are losing money. It helps see if an insurance company is financially healthy or not.

risk-based capital adequacy financial

"the insurer’s risk-based capital adequacy to remain above"

A regulatory measure that compares a financial institution’s available capital to the amount of capital regulators require after adjusting its assets for risk; it is usually expressed as one or more ratios (capital divided by risk-weighted assets). Risk weights assign higher capital charges to assets judged more likely to lose value (for example unsecured loans vs. government bonds), so the metric forces institutions to hold more loss-absorbing capital for riskier portfolios; regulators set minimum risk-based capital ratios and use them to judge solvency and trigger supervisory actions. Different regulatory regimes (for example bank rules under the Basel framework versus insurance risk-based capital systems) use similar principles but vary in exact definitions, risk weights and capital components.

issuer credit financial

"the long-term issuer credit and financial strength ratings"

The issuer credit is an assessment of a borrower’s overall ability to meet its financial obligations, expressed as the creditworthiness of the entity that issues debt rather than of a specific bond or loan. It is typically conveyed by a credit rating or score from a rating agency and reflects the issuer’s financial strength, debt load, and likelihood of default; it is distinct from an issue-specific rating, which also takes into account the legal priority, collateral or other protections tied to a particular security.

quasi-sovereign securities financial

"Kazakhstan’s sovereign and quasi-sovereign securities"

Debt or other tradable securities issued by entities that are owned or controlled by a national, regional, or local government but are not the central government itself. These issuers include state-owned enterprises, public agencies, or government-linked corporations; their securities may carry explicit legal guarantees from the government or only an implicit expectation of support, so their credit risk sits between pure sovereign debt and purely private debt. The distinguishing feature is the issuer’s close public ownership or mission, which affects how markets and rating agencies view likelihood of government support in a stress scenario.

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NEW YORK, Nov. 11, 2026 (GLOBE NEWSWIRE) -- Freedom Finance Insurance has received a credit rating upgrade from S&P Global Ratings, reflecting its growing share of Kazakhstan’s insurance market, stronger financial results and improved capital position. The company has moved from 11th to third place in the country’s non-life insurance sector since 2022, while its market share has risen to 9.7%.

S&P Global Ratings has upgraded the long-term issuer credit and financial strength ratings of Freedom Finance Insurance JSC, part of Nasdaq-listed Freedom Holding Corp. (NASDAQ: FRHC), from ‘BB-’ to ‘BB’. The outlook is stable.

The agency also raised the insurer’s Kazakhstan national-scale rating from ‘kzA-’ to ‘kzA+’, citing its stronger market position, improved operating performance and growing capital base.

One of the main reasons for the upgrade is Freedom Insurance’s rapid growth in Kazakhstan. The company now ranks third in the country’s non-life insurance market, compared with 11th place in 2022. For 2026-2029, the agency forecasts a combined ratio of around 90% and annual net profit of between KZT 11 billion and KZT 16 billion.

The insurer has also strengthened its capital position. In 2026, its capital reached KZT 52 billion (approximately $110 million), up from KZT 35 billion (about $69 million) in 2025.

According to S&P, the stronger capital base should help Freedom Insurance support further growth while maintaining its financial stability. The agency expects the company’s risk-based capital adequacy to remain above its 99.8% confidence-level threshold through 2028, taking into account a KZT 8 billion capital injection in 2026.

S&P also describes the insurer’s investment portfolio as conservative. The company invests primarily in Kazakhstan’s sovereign and quasi-sovereign securities, with an average credit rating of ‘BBB’.

An Important Part of Freedom Holding
S&P continues to regard Freedom Insurance as a strategically important subsidiary of Freedom Holding Corp., which owns the insurer through its Kazakhstan brokerage subsidiary, Freedom Finance JSC.

Insurance plays an important role in the group’s wider business strategy. Alongside banking, brokerage and other financial services, it forms part of the range of products Freedom offers to customers as it develops its financial ecosystem.

The agency expects Freedom Insurance to continue growing and diversifying its business while maintaining strong profitability and capital levels.

At the same time, S&P notes that the insurer still has some ground to make up before it can close the gap with Kazakhstan’s two largest non-life insurance companies. Maintaining its current profitability as it expands will therefore remain important.

Stable Outlook
The stable outlook reflects S&P’s expectation that Freedom Insurance will continue to strengthen its business over the next 12 months without putting undue pressure on its capital position.

The agency could consider another upgrade if the insurer significantly improves its competitive position while keeping its operating performance and capital adequacy in line with expectations.

For now, S&P expects Freedom Insurance to maintain healthy earnings, a stable balance sheet and sufficient capital to support its continued expansion.

About Freedom Holding Corp.
Freedom Holding Corp. provides financial services in 24 countries, including Kazakhstan, the United States, multiple EU countries, Uzbekistan, and Armenia. The Company’s principal executive office is located in New York City. In Kazakhstan, Freedom is actively developing its financial and digital ecosystem, which includes Freedom Bank, Freedom Broker, the insurance companies Freedom Life and Freedom insurance, as well as a lifestyle segment that features Arbuz.kz, Freedom Ticketon, and Aviata. Freedom Holding Corp. shares are traded on the U.S. technology exchange NASDAQ, the Kazakhstan Stock Exchange (KASE), and the Astana International Exchange (AIX) under the ticker symbol FRHC.

Freedom Holding Corp. is regulated by the U.S. Securities and Exchange Commission (SEC) and the common stock is included in the Russell 3000 Index.

Contact

Head of Public Relations
Natalia Kharlashina
Freedom Holding Corp.
prglobal@ffin.kz
+77013641454

A photo accompanying this announcement is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/0c526730-1c60-4b48-9c74-3e473a8eaf73

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What ratings did S&P assign Freedom Holding’s insurance subsidiary?

S&P raised Freedom Finance Insurance’s long-term issuer credit and financial strength ratings from BB- to BB, with a stable outlook. Its Kazakhstan national-scale rating also increased from kzA- to kzA+.

What could lead to another S&P upgrade for Freedom Finance Insurance?

S&P could consider another upgrade if Freedom Finance Insurance significantly improves its competitive position while keeping operating performance and capital adequacy in line with expectations.