Company: FRHC
Filing Date: 2025-07-29
Form Type: ARS
Source: 0000924805-25-000027
Chunk: 122

Company: Freedom Holding Corp.
Filing Date: 2025-07-29
Form: ARS
Chunk 122
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 $ 340,863 $ 402,665 Interest expense on customer accounts and deposits 111,541 70,778 Interest expense on margin lending payable 45,748 16,990 Interest expense on debt securities issued 36,130 10,356 Other interest expense 1,613 322 Total interest expense $ 535,895 $ 501,111 (1) Average balance, average rates, and interest expense relates to interest-bearing deposits. The following table sets forth the effects of changing rates and volumes on interest. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on changes due to rate and the changes due to volume. Table of Contents 76

Year ended March 31, 2025 vs 2024 Increase/ (decrease) due to change in Rate Volume Net Interest expense Interest expense on securities repurchase agreement obligations $ (28,971) $ (32,831) $ (61,802) Interest expense on customer accounts and deposits 34,576 6,187 40,763 Interest expense on margin lending payable (1,399) 30,157 28,758 Interest expense on debt securities issued 3,627 22,147 25,774 Other interest expense — — 1,291 Total interest expense $ 7,833 $ 25,660 $ 34,784 Insurance claims incurred, net of reinsurance In fiscal 2025, we had a 158.5 million, or 114%, increase in insurance claims incurred, net of reinsurance, as compared to $139.6 million in fiscal 2024. The increase was primarily attributable to a $103.2 million, or 122%, rise in expenses for insurance reserves, mainly driven by growth in pension annuity and accident insurance products. This reflects the overall expansion of the insurance portfolio and higher premium inflows during the period. In addition, other insurance expense increased by $37.3 million, or 111%, primarily due to higher redemptions under pension annuity contracts and terminations under accident insurance policies. Claims paid also grew by $19.8 million, or 90%, year over year. The increases were partially offset by a $1.8 million, or