Annual report [Section 13 and 15(d), not S-K Item 405]

INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES

v3.26.1
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES
 12 Months Ended
Mar. 31, 2026
Insurance [Abstract]  
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES
As of March 31, 2026, and March 31, 2025, the Company recognized insurance-related assets and liabilities arising from its underwriting and reinsurance activities. Effective April 1, 2025, the Company adopted LDTI (ASU 2018-12) using the modified retrospective transition method; the accounting policy change and transition impact are described in Note 2. The comparative balances as of March 31, 2025 have been recasted to reflect the disaggregated presentation required by LDTI.

The disclosures below relate solely to the Company's insurance operations and not to its other operating segments (Banking, Brokerage, and Other).

Nature of Insurance Products

The Company offers the following insurance products:
- Long-Duration Contracts: Life insurance and annuity contracts
- Short-Duration Contracts: Life insurance, general insurance products, including property (including automobile),
accident, casualty, and civil liability lines, compulsory employer liability insurance
As of March 31, 2026, and March 31, 2025, insurance and reinsurance receivables of the Group were comprised of the following:

Insurance contract assets
March 31, 2026
March 31, 2025 (Recasted)
Assets:
Amounts due from policyholders $ 9,802  $ 15,197 
Amounts due from reinsured 7,782  5,583 
Advances paid for reinsurance
 2,890  5,364 
Claims receivable from reinsurance 25,235  3,023 
Less: provision for impairment losses (17,595) (2,432)
Insurance and reinsurance receivables: 28,114  26,735 
Unearned premium reserve, reinsurers' share
 3,790  7,028 
Reserves for claims and claims' adjustment expenses, reinsurers' share - short-duration 4,945  3,420 
Total $ 36,849  $ 37,183 
Deferred acquisition costs - long-duration contracts $ 1,266  $ 1,100 
As of March 31, 2026, and March 31, 2025, insurance and reinsurance payables of the Company was comprised of the following:

Insurance contract liabilities
March 31, 2026
March 31, 2025 (Recasted)
Liabilities:
Amounts payable to insured
 $ 5,058  9,417 
Amounts payable to agents and brokers 334  6,287 
Amounts payable to reinsurers
 2,248  1,669 
Insurance and reinsurance payables 7,640  17,373 
Unearned premium reserve 95,573  87,194 
Reserves for claims and claims' adjustment expenses - short-duration 58,463  84,023 
Liability for future policy benefits 328,288  211,384 
Deferred profit liability 163,943  72,459 
Total $ 653,907  $ 472,433 
Long-Duration Contracts

The Long-Duration Contracts represents the net present value of expected future benefit outflows less expected future net premium inflows for the Company's long-duration contracts, measured under ASC 944-40 as amended by LDTI. Measurement methodology is described in Note 2.
Rollforward Table
The table below presents the Long-Duration Contracts disaggregated into the present value of expected net premiums ("PVENP") and the present value of expected future policy benefits ("PVEFPB"). The net LFPB equals PVEFPB minus PVENP. All amounts are net of reinsurance.
Liability for Future Policy Benefits — Rollforward
March 31, 2026
March 31, 2025 (Recasted)
Present Value of Expected Net Premiums (PVENP)
Balance, beginning of period $ 4,787  $ 4,520 
Effect of discount rate change (to OCI) 187  (328)
Effect of cash flow assumption changes (377) 149 
Effect of actual vs. expected experience 297  618 
Interest accrual 558  449 
Issuance expense 129,511  129,231 
Net premiums collected (130,230) (129,303)
Effect of foreign currency translation 252  (549)
Balance, end of period $ 4,985  $ 4,787 
Liability for Future Policy Benefits — Rollforward
March 31, 2026
March 31, 2025 (Recasted)
Present Value of Expected Future Policy Benefits (PVEFPB)
Balance, beginning of period $ 216,171  $ 128,973 
Effect of discount rate change (to OCI) 1,068  (7,135)
Effect of cash flow assumption changes (1,872) 888 
Effect of actual vs. expected experience 28,571  18,665 
Interest accrual 24,166  9,786 
Issuance expense 131,127  129,731 
Benefit payments (34,997) (11,480)
Surrender / termination payments (50,563) (34,237)
Effect of foreign currency translation 19,602  (19,020)
Balance, end of period $ 333,273  $ 216,171 
Liability for Future Policy Benefits, net $ 328,288  $ 211,384 
Life Insurance
March 31, 2026 March 31, 2025 (Recasted)
Undiscounted PVEFPB 40,626 36,616
Undiscounted PVENP 8,083 7,913
Discounted PVEFPB 18,776 18,460
Discounted PVENP 4,985 4,787
Weighted-average duration of the liability (years) 5.5 5.1
Weighted-average interest accretion (original locked-in) rate in KZT 12  % 11  %
Weighted-average current discount rate at balance sheet date in KZT 14  % 13  %
Annuity contracts
March 31, 2026 March 31, 2025 (Recasted)
Undiscounted PVEFPB 726,403 409,097
Undiscounted PVENP —  — 
Discounted PVEFPB 314,350 197,599
Discounted PVENP —  — 
Weighted-average duration of the liability (years) 3.1 2.9
Weighted-average interest accretion (original locked-in) rate 14  % 11  %
Weighted-average current discount rate at balance sheet date 15  % 13  %
Key Actuarial Assumptions
The reserve for long‑duration insurance contracts is measured using best‑estimate cash flow assumptions without any provision for adverse deviation, in accordance with ASC 944‑40‑30‑7. The significant assumptions include mortality rates, lapse rates, policy maintenance expenses, and the discount rate.
•Mortality assumptions for retirement annuity products and employer liability annuities are based on local mortality tables established by the regulatory framework of the Republic of Kazakhstan, while for other portfolios they are based on the reinsurer’s mortality tables.
•Lapse rates are determined based on the Company’s historical experience, analyzed by portfolio and policy duration.
•Policy maintenance expenses reflect the current level of per‑policy costs, adjusted for the expected rate of inflation.
•Discount curves for KZT‑denominated liabilities are derived using the parametric Nelson–Siegel curve with parameters published by KASE, while discount curves for USD‑denominated liabilities are based on the HQMYC discount curve from the FED.
•Cash‑flow assumptions are reviewed at least annually, and the results of such reviews are recognized in net income in the period in which the review is performed.

Deferred Acquisition Costs — Long-Duration Contracts

The following table presents the rollforward of DAC attributable to long-duration contracts. Effective April 1, 2025, DAC is amortized on a straight-line basis over the expected contract term. DAC attributable to short-duration contracts continues to be amortized over the one-year policy period and is not presented separately.

Deferred Acquisition Costs — Long-Duration Contracts
March 31, 2026
March 31, 2025 (Recasted)
Balance, beginning of period $ 1,100  $ 1,210 
Capitalizations — new business written 499  456 
Amortization (straight-line, contract term) (170) (219)
Impairment / write-off (229) (209)
Foreign currency translation 66  (138)
Balance, end of period $ 1,266  $ 1,100 

Prior to LDTI adoption, DAC on traditional life contracts was amortized over the premium-paying period using the net level premium method; DAC on participating and interest-sensitive contracts was amortized on the basis of estimated gross profits (EGP). The transition to straight-line amortization has been reflected in the opening balance adjustment described in Note 2.
Short-Duration Contracts

Rollforward Table
    
March 31, 2026
March 31, 2025 (Recasted)
Gross reserves, beginning of year $ 84,023  $ 55,678 
Less: reinsurers' share, beginning of year (3,420) (4,031)
Net reserves, beginning of year 80,603  51,647 
Claims and CAE Incurred:
Current year 80,105  80,473 
Prior years — (favorable) / adverse (23,661) (14,437)
Total incurred 56,444  66,036 
Claims and CAE Paid:
Current year (74,206) (23,350)
Prior years (11,257) (6,363)
Total paid (85,463) (29,713)
Foreign exchange effect 1,936  (7,367)
Net reserves, end of year 53,520  80,603 
Plus: reinsurers' share, end of year 4,943  3,420 
Gross reserves, end of year $ 58,463  $ 84,023 
The decrease in incurred claims and claim adjustment expenses attributable to prior fiscal years primarily reflects favorable development in the Insurance of Vehicle Owners line, driven by lower-than-expected claim frequency for those prior accident years, and lower incurred claims in the Accident Insurance line. Lower incurred claims in the Accident Insurance line were primarily driven by lower sales volumes in this line of business following changes in local regulatory requirements. No material assumption changes or premium adjustments were recorded as a result.
Allocation by Short-Duration Product Line
As of March 31, 2026
Gross reserves for claims and claims’ adjustment expenses Reserves for claims and claims’ adjustment expenses, reinsurers’ share Reserves for claims and claims’ adjustment expenses, net of reinsurance
Life Insurance $ 4,631  $ 22  $ 4,609 
Accident Insurance 438  —  438 
Civil Liability
8,367  339  8,028 
Vehicle Owners
14,030  —  14,030 
Compulsory employer liability insurance
8,189  491  7,698 
Property Damage
4,987  454  4,533 
Motor Vehicle
 2,431  22  2,409 
Other 11,775 
Total
 $ 53,520 
Claims Development - Short-Duration Contracts
Life Insurance
Incurred losses and LAE, net of reinsurance for the years ended March 31
Accident
 The information about incurred and paid claims development for the years ended March 31, 2018 to 2025, is presented as supplementary information.
Year
 2018 2019 2020 2021 2022 2023 2024 2025 2026
2018 6  11  —  —  —  —  —  —  — 
2019 122  38  —  —  —  —  —  — 
2020 52  22  1  1  1  1  1 
2021 8  2  —  —  —  — 
2022 106  211  203  25  — 
2023 552  3,532  1,118  3 
2024 14,334  6,857  99 
2025 24,966  64 
2026 4,738 
Total
 4,905 
Cumulative paid losses and LAE, net of reinsurance
2018 —  —  —  —  —  —  —  —  — 
2019 —  —  —  —  —  —  —  — 
2020 1  1  1  1  1  1  1 
2021 —  —  —  —  —  — 
2022 —  —  —  —  — 
2023 1  3  3  24 
2024 73  98  128 
2025 60  84 
2026 59 
Total
 296 
Liabilities for loss and LAE, net of reinsurance
 4,609 

The following table shows the average annual percentage payout of incurred losses for the Life Insurance line of business:

Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years
 1 2 3 4 5 6 7 8 9
Average annual percentage payout
 50.8% 32.1% (4.4)% 204.9% (233.5)% —% 50.0% —% —%
Accident Insurance

Incurred losses and LAE, net of reinsurance for the years ended March 31
Accident The information about incurred and paid claims development for the years ended March 31, 2018 to 2025, is presented as supplementary information.
Year 2018 2019 2020 2021 2022 2023 2024 2025 2026
2018 2  4  —  —  —  —  —  —  — 
2019 106  38  1  1  1  1  1  1 
2020 85  95  1  1  1  1  1 
2021 261  195  1  1  1  1 
2022 426  243  4  4  4 
2023 833  678  11  119 
2024 2,125  3,610  56 
2025 9,608  274 
2026 227 
Total 683 
Cumulative paid losses and LAE, net of reinsurance
2018 —  —  —  —  —  —  —  —  — 
2019 —  1  1  1  1  1  1  1 
2020 —  1  1  1  1  1  1 
2021 1  1  1  1  1  1 
2022 2  4  4  4  4 
2023 5  11  11  11 
2024 32  37  39 
2025 184  187 
2026 1 
Total 245 
Liabilities for loss and LAE, net of reinsurance 438 



The following table shows the average annual percentage payout of incurred losses for the Accident Insurance line of business:

Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years
 1 2 3 4 5 6 7 8 9
Average annual percentage payout
 37.2% 41.3% 2.2% 2.3% 18.6% 0.3% (1.9)% —% —%
Civil Liability

Incurred losses and LAE, net of reinsurance for the years ended March 31
Accident The information about incurred and paid claims development for the years ended March 31, 2018 to 2025, is presented as supplementary information.
Year 2018 2019 2020 2021 2022 2023 2024 2025 2026
2018 1  1  1  1  1  —  1  1  1 
2019 —  27  9  —  —  —  —  — 
2020 2  2  2  —  —  —  — 
2021 12  12  36  232  2  2 
2022 754  727  678  766  832 
2023 254  1,006  610  135 
2024 2,971  3,106  2,240 
2025 8,041  4,746 
2026 3,722 
Total 11,678 
Cumulative paid losses and LAE, net of reinsurance
2018 1  1  1  1  1  1  1  1  1 
2019 —  —  —  —  —  —  —  — 
2020 —  —  —  —  —  —  — 
2021 1  2  2  2  2  2 
2022 676  676  676  676  676 
2023 —  61  77  77 
2024 —  1,448  1,459 
2025 1  1,186 
2026 249 
Total 3,650 
Liabilities for loss and LAE, net of reinsurance 8,028 



The following table shows the average annual percentage payout of incurred losses for the Civil Liability line of business:

Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years
 1 2 3 4 5 6 7 8 9
Average annual percentage payout
 34% 36% 11% 4% 9% 6% —% —% —%
Vehicle Owners

Incurred losses and LAE, net of reinsurance for the years ended March 31
Accident The information about incurred and paid claims development for the years ended March 31, 2018 to 2025, is presented as supplementary information.
Year 2018 2019 2020 2021 2022 2023 2024 2025 2026
2018 842  1,213  1,226  1,233  1,236  1,260  1,224  1,273  1,250 
2019 1,010  1,455  1,479  1,489  1,565  1,496  1,556  1,533 
2020 1,718  2,456  2,551  2,759  2,579  2,707  2,644 
2021 3,584  4,671  5,289  4,725  4,902  4,747 
2022 7,215  10,245  9,290  9,349  8,976 
2023 12,006  12,280  12,158  11,377 
2024 8,636  6,570  6,342 
2025 19,840  19,502 
2026 61,203 
Total 117,574 
Cumulative paid losses and LAE, net of reinsurance
2018 842  1,213  1,226  1,233  1,236  1,236  1,236  1,236  1,250 
2019 1,010  1,455  1,479  1,489  1,509  1,514  1,514  1,533 
2020 1,548  2,418  2,515  2,592  2,592  2,624  2,644 
2021 2,837  4,539  4,656  4,688  4,709  4,747 
2022 5,778  8,650  8,808  8,915  8,976 
2023 8,343  11,044  11,209  11,293 
2024 4,217  5,988  6,070 
2025 12,532  18,298 
2026 48,733 
Total 103,544 
Liabilities for loss and LAE, net of reinsurance 14,030 


The following table shows the average annual percentage payout of incurred losses for the Vehicle Owners line of business:

Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years
 1 2 3 4 5 6 7 8 9
Average annual percentage payout
 67% 29% 2% 1% —% —% —% —% 1%
Compulsory employer liability insurance

Incurred losses and LAE, net of reinsurance for the years ended March 31
Accident The information about incurred and paid claims development for the years ended March 31, 2018 to 2025, is presented as supplementary information.
Year 2018 2019 2020 2021 2022 2023 2024 2025 2026
2018 451  530  670  757  805  928  1,100  1,224  1,277 
2019 561  477  450  437  540  585  585  569 
2020 901  825  722  808  907  932  1,059 
2021 1,094  1,125  1,474  1,137  945  1,082 
2022 1,067  1,166  1,240  1,076  1,269 
2023 1,429  1,338  1,329  1,877 
2024 2,761  3,055  3,048 
2025 8,106  14,048 
2026 3,624 
Total 27,853 
Cumulative paid losses and LAE, net of reinsurance
2018 199  377  575  669  709  761  936  1,165  1,244 
2019 207  305  323  350  365  373  472  531 
2020 207  400  475  520  581  632  793 
2021 254  430  538  550  567  618 
2022 433  628  667  700  774 
2023 351  585  662  784 
2024 1,120  1,817  2,079 
2025 5,919  12,021 
2026 1,311 
Total 20,155 
Liabilities for loss and LAE, net of reinsurance 7,698 


The following table shows the average annual percentage payout of incurred losses for the Compulsory employer liability insurance line of business:

Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years
 1 2 3 4 5 6 7 8 9
Average annual percentage payout
 29.2% 19.1% 2.0% 1.5% 5.8% 3.2% 16.3% 15.2% 5.2%
Property Damage

Incurred losses and LAE, net of reinsurance for the years ended March 31
Accident The information about incurred and paid claims development for the years ended March 31, 2018 to 2025, is presented as supplementary information.
Year 2018 2019 2020 2021 2022 2023 2024 2025 2026
2018 458  496  543  540  540  399  523  544  540 
2019 —  5  5  10  —  10  10  10 
2020 8  8  8  —  128  13  12 
2021 56  50  283  183  117  112 
2022 110  118  141  121  117 
2023 45  187  120  23 
2024 319  624  554 
2025 4,145  3,856 
2026 2,889 
Total 8,113 
Cumulative paid losses and LAE, net of reinsurance
2018 458  496  540  540  540  540  540  540  540 
2019 —  —  —  10  10  10  10  10 
2020 8  8  8  8  12  12  12 
2021 2  8  112  112  112  112 
2022 7  26  117  117  117 
2023 —  23  23  23 
2024 40  43  230 
2025 33  1,887 
2026 649 
Total 3,580 
Liabilities for loss and LAE, net of reinsurance 4,533 


The following table shows the average annual percentage payout of incurred losses for the Property Damage line of business:

Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years
 1 2 3 4 5 6 7 8 9
Average annual percentage payout
 21% 22% 30% 22% 6% —% —% —% —%
Motor Vehicle

Incurred losses and LAE, net of reinsurance for the years ended March 31
Accident The information about incurred and paid claims development for the years ended March 31, 2018 to 2025, is presented as supplementary information.
Year 2018 2019 2020 2021 2022 2023 2024 2025 2026
2018 140  162  166  166  166  231  165  171  166 
2019 175  195  195  195  252  194  202  195 
2020 203  253  253  490  246  256  247 
2021 288  337  581  345  359  346 
2022 310  518  558  433  413 
2023 938  824  989  768 
2024 4,937  4,029  3,081 
2025 4,661  3,635 
2026 3,205 
Total 12,056 
Cumulative paid losses and LAE, net of reinsurance
2018 140  162  166  166  166  166  166  166  166 
2019 174  191  195  195  195  195  195  195 
2020 178  246  246  247  247  247  247 
2021 242  327  340  346  346  346 
2022 243  403  403  413  413 
2023 419  753  753  758 
2024 1,846  2,633  2,698 
2025 2,226  2,645 
2026 2,179 
Total 9,647 
Liabilities for loss and LAE, net of reinsurance 2,409 


The following table shows the average annual percentage payout of incurred losses for the Motor Vehicle line of business:

Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years
 1 2 3 4 5 6 7 8 9
Average annual percentage payout
 69% 24% 4% 3% —% —% —% —% —%