v3.26.1
RECAST
 3 Months Ended
Jun. 30, 2026
Accounting Changes and Error Corrections [Abstract]  
RECAST RECAST
Effective April 1, 2025, the Company adopted Accounting Standards Update 2018-12, Financial Services — Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI"), as amended by ASU 2019-09 and ASU 2020-11, using the modified retrospective transition method. The transition date is April 1, 2023, which is the beginning of the earliest period presented in the Company's consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended March 31, 2026. The condensed consolidated balance sheets as of June 30, 2026 and March 31, 2026 are presented on the basis applied in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2026 and have not been recast; the recast affects the comparative statements of operations, comprehensive income, changes in equity (including opening balances as of April 1, 2025) and cash flows.
The comparative financial statements for the three months ended June 30, 2025 have been recast to reflect the effects of LDTI adoption. The adoption affected only the measurement and presentation of long-duration insurance contracts (life insurance and annuity contracts written by Freedom Life); it did not change the accounting for the Group's short-duration insurance contracts or any non-insurance line items. In connection with the adoption, the Group renamed the following financial statement line items: "Insurance underwriting income" to "Net insurance revenue"; "Insurance claims incurred, net of reinsurance" to "Insurance claims and policyholder benefits, net of reinsurance"; and "Liabilities from insurance activity" to "Insurance contract liabilities". A new line "Change in discount rate on liability for future policy benefits" was added to other comprehensive income. Prior-period amounts have been conformed to the current-period presentation. The adoption of LDTI did not change net cash provided by or used in operating, investing, or financing activities for any period presented.
Three months ended June 30, 2025
As previsouly reportedEffect of adoption of ASU 2018-12As recasted
Revenue:
Fee and commission income$107,642 $— $107,642 
Net gain on trading securities45,602 — 45,602 
Interest income198,571 — 198,571 
Net insurance revenue153,257 (9,442)143,815 
Net loss on foreign exchange operations(12,893)— (12,893)
Net gain on derivatives15,459 — 15,459 
Sales of goods and services17,224 — 17,224 
Other income8,561 — 8,561 
TOTAL REVENUE, NET$533,423 $(9,442)$523,981 
Expense:
Fee and commission expense$84,871 $(517)$84,354 
Interest expense113,410 — 113,410 
Insurance claims and policyholder benefits, net of reinsurance80,285 (15,289)64,996 
Payroll and bonuses93,101 (596)92,505 
Professional services13,024 — 13,024 
Stock compensation expense23,054 — 23,054 
Advertising and sponsorship expense24,463 — 24,463 
General and administrative expense41,975 — 41,975 
Allowance for expected credit losses4,822 — 4,822 
Cost of sales13,903 — 13,903 
TOTAL EXPENSE$492,908 $(16,402)$476,506 
INCOME BEFORE INCOME TAX40,515 6,960 47,475 
Income tax expense(10,119)— (10,119)
NET INCOME$30,396 $6,960 $37,356 
Less: Net loss attributable to non-controlling interest in subsidiary— — — 
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS$30,396 $6,960 $37,356 
OTHER COMPREHENSIVE INCOME
Change in unrealized loss on investments available-for-sale, net of tax effect2,998 — 2,998 
Reclassification adjustment for net realized loss on available-for-sale investments disposed of in the period, net of tax effect174 — 174 
Change in discount rate on liability for future policy benefits— (848)(848)
Foreign currency translation adjustments(41,804)— (41,804)
OTHER COMPREHENSIVE LOSS(38,632)(848)(39,480)
COMPREHENSIVE (LOSS)/INCOME BEFORE NON-CONTROLLING INTERESTS$(8,236)$6,112 $(2,124)
Less: Comprehensive loss attributable to non-controlling interest in subsidiary— — — 
COMPREHENSIVE (LOSS)/INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS$(8,236)$6,112 $(2,124)
Nature of principal adjustments

The LDTI recast adjustments consist of:

(a) Liability for future policy benefits. The LFPB for the Group's long-duration life insurance and annuity contracts was remeasured under the net premium ratio approach of ASC 944-40 as amended by LDTI. At the transition date (April 1, 2023), the LFPB carrying amount was adjusted to remove amounts previously recorded in AOCI and was remeasured using the upper-medium grade discount rate. For recast periods after the transition date, the LFPB reflects annual cash flow assumption reviews (recognized within Insurance claims and policyholder benefits, net of reinsurance) and quarterly discount rate updates (recognized within Change in discount rate on liability for future policy benefits, net of tax in OCI). The LFPB is included within Insurance contract liabilities on the consolidated balance sheet.

(b) Deferred acquisition costs. Under LDTI, DAC on long-duration contracts is amortized on a straight-line basis over the expected contract term, replacing the Group's previous method of amortization over the coverage period of the related contracts. DAC balances at the transition date were not adjusted; the change in amortization method was applied prospectively from the transition date. DAC is included within Insurance contract assets.

(c) Accumulated other comprehensive income. AOCI was adjusted at the transition date to reflect the difference between the LFPB measured at the locked-in discount rate and at the current upper-medium grade discount rate at April 1, 2023.
Subsequent quarterly discount rate updates result in remeasurement gains or losses recognized within Change in discount rate on liability for future policy benefits, net of tax.

(d) Disaggregated presentation. Under LDTI, the Group disaggregates Insurance contract liabilities between long-duration contracts (LFPB) and short-duration claims reserves within Note 14. Comparative periods have been recast to reflect this disaggregation.
(e) Line item renames. The Group renamed certain financial statement line items in connection with LDTI adoption as described above and in Note 2.