Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 297

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 297
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)%Reinsurance premiums ceded(2,307)(1,690)(617)37 %Change in unearned premium reserve, net(2,458)(7,859)5,401 (69)%Insurance premiums earned, net of reinsurance$125,228 $160,344 $(35,116)(22)%

Net gain on foreign exchange operations

For the three months ended September 30, 2025, we realized a net gain on foreign exchange operations of $0.01 million compared to a net gain of $6.5 million for the three months ended September 30, 2024. The change was primarily due to the translation loss in the amount of $27.2 million which is mainly attributable to the 6% weakening of Kazakhstan tenge against US dollar and other currencies. This loss was offset by a $27.2 million gain on dealing transactions. This change is mostly attributable to Freedom Bank KZ which had a gain of $27.2 million from foreign currency dealings for the three months ended September 30, 2025, compared to $17.2 million for the three months ended September 30, 2024.

Net gain on derivatives    

For the three months ended September 30, 2025, we had net loss on derivatives of $3.2 million compared to a net gain of $6.3 million for the three months ended September 30, 2024. The decrease was primarily attributable to our subsidiary, Freedom Bank KZ, which had a realized net loss of $1.9 million for the three months ended September 30, 2025, as compared to a realized net gain of $9.9 million for the three months ended September 30, 2024. Such change between the two periods was mainly due to losses on currency swaps and the decrease of transactions during the three months ended September 30, 2025. 

Expense

79

The following table sets out information on our total expense for the periods presented.

Three months ended September 30, 2025Three months ended September 30, 2024Change(amounts in thousands)Amount%*Amount%*Amount%Fee and commission expense$64,162 14 %$90,837 20 %$(26,675)(29)%Interest expense102,259 22 %124,665 27 %(22,406)(18)%Insurance claims incurred, net of reinsurance79,923 17 %66