Freedom Insurance’s S&P Global Ratings Rating Has Risen Three Notches Since 2019

S&P Global Ratings has upgraded Freedom Insurance’s rating to BB with a Stable outlook. The decision continues a series of positive rating actions involving Freedom Group companies. Earlier, S&P revised its outlook on the bank, major brokerage subsidiaries, and the holding company to Positive, while Moody’s assigned ratings to two of the group’s insurance companies for the first time.

S&P Global Ratings notes that the insurer has strengthened its position in Kazakhstan’s market, increased its capital, and improved its underwriting performance. Since 2022, the company has climbed from 11th to third place in the non-life insurance sector, while its market share has grown from 2.1% to 9.7%.

At the same time, the agency raised Freedom Insurance’s Kazakhstan national scale rating from kzA− to kzA+. The international rating increased by one notch, while the national scale rating rose by two notches.

Freedom Insurance is part of the Freedom Holding Corp. ecosystem and offers motor, property, liability, and business risk insurance. A financial strength rating reflects the agency’s opinion of an insurer’s ability to meet its obligations to policyholders. The national scale rating allows credit risks to be compared among companies operating in Kazakhstan.

Why S&P Upgraded the Rating

According to S&P analysts, Freedom Insurance has improved its underwriting profitability and strengthened its capital base, providing a greater buffer against potential losses. The agency believes the company’s performance has moved closer to industry averages and the results of higher-rated insurers.

In the first nine months of 2026, the company generated KZT 9.1 billion ($20.3 million) in net profit. Return on equity reached 27%, while the net combined ratio stood at 86.3%. This means that for every KZT 100 in earned insurance premiums, approximately KZT 86 went toward claims and expenses, indicating profitable underwriting operations.

However, the agency believes the company will need more time to close the gap with the market’s two largest players. Maintaining profitability as the business expands will be essential to further strengthening its competitive position.

Freedom Insurance’s capital increased from KZT 35 billion ($78 million) in 2025 to KZT 52 billion (approximately 115.8million)in2026.Thisyear,theshareholdercontributedKZT8billion(17.8 million). Under its base-case scenario, S&P assumes no additional capital injections over the next three years and does not expect dividend payments between 2026 and 2029. This implies that earnings will be retained within the company to support its development.

The agency also views the insurer’s investment strategy positively. Freedom Insurance primarily invests in securities issued by government and quasi-government entities, with an average credit rating of BBB. S&P considers this portfolio conservative.

The insurer plays an important role in Freedom Holding’s strategy, although its financial strength also depends on its own operating performance. S&P specifically notes that regulatory restrictions limit the ability to withdraw funds from the insurance company to support other entities within the group.

What Is S&P’s Outlook for the Company?

The Stable outlook reflects S&P’s expectation that Freedom Insurance will continue to expand its business and offer a diversified range of insurance products over the next 12 months while maintaining strong earnings and capital levels.

For 2026–2029, the agency forecasts annual net profit of KZT 11–16 billion, equivalent to approximately $24.5–35.6 million. The combined ratio is expected to remain around 90%, indicating that underwriting operations will continue to be profitable.

S&P could upgrade the rating again if the company significantly strengthens its competitive position, delivers results in line with or above forecasts, and maintains adequate capital reserves.

Conversely, a downgrade could occur if the company’s capital position weakens for a prolonged period, potentially due to excessively rapid business growth, substantial investment losses, or lower profitability. Increased exposure to investments and liabilities that are more sensitive to market fluctuations would pose an additional risk. However, the agency does not currently consider a downgrade its base-case scenario.

How Freedom Insurance’s Ratings Have Evolved

Since Freedom Insurance began working with S&P, its international rating has increased by three notches. The company received its initial B rating in November 2019. In December 2022, the agency upgraded it to B+, followed by BB− in November 2024 and BB in the latest rating action.

In September 2026, the insurer received its first rating from Moody’s: a Ba1 insurance financial strength rating in local and foreign currencies, with a Stable outlook. Ba1 is one notch below investment grade on Moody’s rating scale.

Moody’s highlighted Freedom Insurance’s market position, asset quality, conservative investment approach, and capital adequacy. According to the agency, the company ranked third in Kazakhstan’s non-life insurance market in 2025, with a market share of approximately 10% based on gross written premiums.

Over the next 12–18 months, Moody’s expects profitability to improve, supported by underwriting performance and investment income, while capital adequacy remains strong. A rating upgrade could follow if the company reduces its risk exposure and continues to strengthen its market position.

Freedom Life Receives Investment-Grade Rating from Moody’s

The group’s second insurer, Freedom Life, operates in the life insurance market. The company offers savings-oriented insurance products, life protection, and pension annuities that provide customers with regular payments. At the end of 2025, it ranked among the three largest players in its segment, accounting for approximately 20% of insurance premiums.

In September, Moody’s assigned Freedom Life a Baa3 rating with a Stable outlook for the first time. The company became the first entity within Freedom Holding Corp. to receive an investment-grade rating from the agency. Moody’s identified asset quality, capitalization, and profitability among its key strengths.

The agency expects Freedom Life to maintain its market position and solid financial performance over the next 12–18 months. Earnings should be supported by investment income and the spread between returns on invested assets and the rates guaranteed to customers under insurance contracts. At the same time, growth in pension annuities requires careful management of the timing of future payouts and investment cash flows.

Freedom Life’s current S&P rating stands at BB+ with a Stable outlook, while its national scale rating is kzAA. The agency last upgraded the international rating in October 2025. Since the initial B rating in March 2020, it has risen by four notches: B → B+ → BB− → BB → BB+.

Bank and Brokerage Subsidiaries Receive Positive Outlook from S&P

S&P ratings for the group’s main banking and brokerage subsidiaries have also improved. In March 2023, the agency upgraded Freedom Bank Kazakhstan, JSC Freedom Finance, Freedom Finance Global PLC, and Freedom Finance Europe Ltd. from B− to B. Their ratings subsequently reached B+ in December 2024 and BB− in June 2026. This represents a three-notch increase from their levels before the March 2023 upgrade.

In September, S&P affirmed these companies’ international ratings at BB−/B and revised the outlook from Stable to Positive. The Kazakhstan national scale ratings of Freedom Bank and JSC Freedom Finance were also upgraded from kzA− to kzA.

The agency noted that the group continues to strengthen its risk management and compliance practices. In S&P’s assessment, moderate balance sheet growth and earnings generated across different business segments and countries should support capital levels. The Positive outlook indicates that ratings could be upgraded within the next 12 months if S&P improves its assessment of Kazakhstan’s economic risks.

Freedom Bank also received its first rating from Moody’s in March 2026. The agency assigned the bank a Ba3 long-term deposit rating with a Stable outlook. Moody’s highlighted the bank’s capitalization and growth in its customer base and deposits. Over the next 12–18 months, the agency expects balanced business development while taking into account risks associated with rapid expansion and changes to the bank’s business model.

The long-term S&P rating of the parent company, Freedom Holding Corp., remains at B−. In September, its outlook was also revised to Positive. This is a separate assessment of the holding company: the ratings assigned to its banking, brokerage, and insurance subsidiaries reflect their respective obligations and do not automatically apply to the parent company.