Mount Logan Capital Inc. Announces First Quarter 2025 Financial Results

Declared quarterly distribution of C$0.02 per common share in the second quarter of 2025, the twenty-third consecutive quarter of a shareholder distribution

Asset management segment generated $8.1 million in Fee Related Earnings ("FRE") for the trailing twelve months ended March 31, 2025, a 25% increase over the prior year period

Generated $7.8 million of Spread Related Earnings ("SRE") for the trailing twelve months ended March 31, 2025, which reflects 1.3% of spread earnings on Ability's assets

During January 2025, the Company announced it entered into a definitive agreement to combine with 180 Degree Capital Corp. (NASDAQ:TURN) in an all-stock transaction. The surviving entity is expected to operate as Mount Logan Capital Inc. ("New Mount Logan") and to be listed on Nasdaq under the symbol MLCI

In January 2025, Mount Logan completed its previously announced investment in Runway Growth Capital LLC, a $1.3 billion private credit asset manager, alongside BC Partners Credit

All amounts are stated in United States dollars, unless otherwise indicated

TORONTO, May 15, 2025 (GLOBE NEWSWIRE) -- Mount Logan Capital Inc. (Cboe Canada: MLC) ("Mount Logan" or the "Company") announced today its financial results for the three months ended March 31, 2025.

First Quarter 2025 Highlights

• FRE for the asset management segment was $2.2 million for the quarter, an increase of 37% compared to the first quarter of 2024, due to improved economics on the Company's service agreement with Sierra Crest Investment Management over an interval fund, and the decrease in general, administrative and other expenses from the expiry of transition services agreements and other one-time expenses incurred in the first quarter of 2024. FRE for the trailing twelve months was $8.1 million, an increase of 25% from the comparative trailing twelve-month period, primarily attributable to increases in management fees.
• Total revenue for the asset management segment of the Company was $3.2 million, a decrease of $0.8 million, or 21%, as compared to the first quarter of 2024. The decrease was driven by a reduction in and normalization of incentive fees associated with a single managed fund in winddown, and an increase in net loss from investment activities, both of which we view as transitory elements. First quarter asset management revenues also exclude $1.2 million of management fees associated with Mount Logan's management of the assets of Ability Insurance Company ("Ability"), a wholly-owned subsidiary of the Company. Normalized Ability management fees for the first quarter of 2025 were $1.6 million, excluding one-time expenses, which are not expected to continue throughout the remainder of the year.
• Total net investment income for the insurance segment was $19.0 million for the three months ended March 31, 2025, a decrease of $2.8 million, or 13%, as compared to the first quarter of 2024, owing to interest expense related to the interest rate swap, decrease in bond yields and decrease in the long term investments portfolio. Excluding the funds withheld assets under reinsurance contracts and Modco, the insurance segment's net investment income was $14.5 million, an increase of $0.4 million, or 3%, as compared to the first quarter of 2024.
• Achieved 6.9%¹ yield on the insurance investment portfolio for the quarter ended March 31, 2025. This was impacted by higher investment expense on funds withheld assets under the Modco arrangement. Excluding the funds withheld under reinsurance contracts and Modco, the yield was 8.8%.
• Ability's total assets managed by Mount Logan increased to $645.7 million as of March 31, 2025, an increase of $28.9 million from first quarter 2024 of $616.8 million. As of March 31, 2025, the insurance segment included $1.02 billion in total investment assets, down $23.0 million, or 2%, from the first quarter of 2024 investment assets of $1.04 billion. During the quarter, Mount Logan began managing a portion of Ability's modified coinsurance assets with Vista.
• Book value of the insurance segment as of March 31, 2025 was $85.9 million, an increase of $3.3 million as compared to $82.6 million for the first quarter of 2024.
• SRE for the insurance segment was $7.8 million for the trailing twelve months ended March 31, 2025, down $1.7 million from the trailing twelve months ended March 31, 2024 of $9.5 million, primarily driven by an increase in cost of funds, partially offset by increased net investment income and lower operating expenses. The increase in cost of funds was primarily driven by unfavorable in-force update to the Long Term Care business (Guardian block) of $1.8 million for the trailing twelve months ended March 31, 2025, while there was a favorable in-force update to the LTC business (Medico block) observed of $4.8 million for the twelve months ended March 31, 2024.
  
  

Subsequent Events

• Declared a shareholder distribution in the amount of C$0.02 per common share for the quarter ended March 31, 2025, payable on June 2, 2025 to shareholders of record at the close of business on May 27, 2025. This cash dividend marks the twenty-third consecutive quarter of the Company issuing a C$0.02 distribution to its shareholders. This dividend is designated by the Company as an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.
• A preliminary joint proxy statement/prospectus was filed with the United States Securities and Exchange Commission (the "SEC") for the previously announced merger of Mount Logan with 180 Degree Capital Corp. (NASDAQ:TURN) ("180 Degree Capital"), in an all-stock transaction (the "Business Combination"). The surviving entity is expected to be a Delaware corporation operating as New Mount Logan listed on Nasdaq under the symbol "MLCI". As required under U.S. federal securities laws and related rules and regulations, the joint proxy statement/prospectus included Mount Logan's audited financial statements for the years ended December 31, 2024 and 2023 prepared in accordance with U.S. Generally Accepted Accounting Principles. In connection with the Business Combination, shareholders of Mount Logan will receive proportionate ownership of New Mount Logan determined by reference to Mount Logan's transaction equity value at signing, subject to certain pre-closing adjustments, relative to 180 Degree Capital's Net Asset Value ("NAV") at closing. Shareholders holding approximately 26% of the outstanding shares of Mount Logan and approximately 20% of the outstanding shares of 180 Degree Capital signed voting agreements supporting the Business Combination, and an additional 8% of Mount Logan and 7% of 180 Degree Capital shareholders, respectively, have provided written non-binding indications of support for the Business Combination.
• Portman Ridge Finance Corporation (NASDAQ:PTMN) and Logan Ridge Finance Corporation (NASDAQ:LRFC) merger remains subject to the receipt of certain shareholder approvals and the satisfaction of other closing conditions. Mount Logan currently earns management fees from LRFC and has a minority stake in PTMN's manager, Sierra Crest Investment Management.
  
  

Management Commentary

• Ted Goldthorpe, Chief Executive Officer and Chairman of Mount Logan stated, "We are pleased to report our first quarter 2025 results, reflecting the continued earnings power of our asset management and insurance platforms. While AUM growth slowed in Q1 2025, consistent with broader macro challenges, we demonstrated our ability to generate strong, positive Fee Related Earnings on the asset management segment, and Spread Related Earnings in the insurance platform, providing a solid foundation for momentum in 2025. Our managed funds demonstrated performance resilience and low volatility as compared to the public credit and equity markets, which we view as a testament to our focus on private credit assets. Looking ahead, we see ample opportunities to drive AUM growth across our core managed vehicles, enact operational improvements and efficiencies, while also advancing strategic priorities to scale the business through reinvestment across our segments and accretive acquisition opportunities, which includes our recently announced transactions with 180 Degree Capital and Runway, which we believe will be significant catalysts for long-term growth and investment into our business."
  
  

Selected Financial Highlights

• Total Capital of the Company was $144.9 million as at March 31, 2025, a decrease of $5.4 million as compared to December 31, 2024. Total capital consists of debt obligations and total shareholders' equity.
• Consolidated net income (loss) before taxes was $(13.7) million for the first quarter of 2025, a decrease of $26.8 million from $13.1 million in the first quarter of 2024. The decrease was primarily attributable to the increase in net insurance finance expenses, decrease in net investment income and increase in general, administrative and other expenses under the insurance segment, as well as an increase in corporate transaction costs under the asset management segment related to the Business Combination when compared to the first quarter of 2024.
• Basic Earnings (loss) per share ("EPS") was ($0.48) for the first quarter of 2025, a decrease of $0.99 from $0.51 for the first quarter of 2024.
• Adjusted basic EPS was ($0.29) for the first quarter of 2025, a decrease of $0.83 from $0.54 for the first quarter of 2024.

Results of Operations by Segment

($ in Thousands)	Three Months Ended
	March 31, 2025				December 31, 2024				March 31, 2024
Reported Results
Asset management
Revenue	$	3,192			$	4,442			$	4,030
Expenses		12,578				13,440				7,615
Net income (loss) - asset management		(9,386	)			(8,998	)			(3,585	)
Insurance
Revenue (1)		18,982				(622	)			17,555
Expenses		23,280				(16,142	)			822
Net income (loss) - insurance		(4,298	)			15,520				16,733
Income before income taxes		(13,684	)			6,522				13,148
Provision for income taxes		361				37				(56	)
Net income (loss)	$	(13,323	)		$	6,559			$	13,092
Basic EPS	$	(0.48	)		$	0.25			$	0.51
Diluted EPS	$	(0.48	)		$	0.23			$	0.50
Adjusting Items
Asset management
Transaction costs (2)		(4,545	)			(1,921	)			(251	)
Acquisition integration costs (3)		—				—				(250	)
Non-cash items (4)		(737	)			(2,940	)			(346	)
Impact of adjusting items on expenses		(5,282	)			(4,861	)			(847	)
Adjusted Results
Asset management
Revenue	$	3,192			$	4,442			$	4,030
Expenses		7,296				8,579				6,768
Net income (loss) - asset management		(4,104	)			(4,137	)			(2,738	)
Income before income taxes		(8,402	)			11,383				13,995
Provision for income taxes		361				37				(56	)
Net income (loss)	$	(8,041	)		$	11,420			$	13,939
Basic EPS	$	(0.29	)		$	0.44			$	0.54
Diluted EPS	$	(0.29	)		$	0.40			$	0.54

<sup>(1)    Insurance Revenue line item is presented net of insurance service expenses and net expenses from reinsurance contracts held.

(2)    Transaction costs are related to business acquisitions and strategic initiatives transacted by the Company.

(3)    Acquisition integration costs are consulting and administration services fees related to integrating a business into the Company. Acquisition integration costs are recorded in general, administrative and other expenses.

(4)    Non-cash items include amortization and impairment of acquisition-related intangible assets and impairment of goodwill, if any.</sup>

Asset Management

Total Revenue – Asset Management

($ in Thousands)

		Three Months Ended
		March 31, 2025				March 31, 2024
Management and incentive fee		$	2,928			$	3,494
Equity investment earning			282				224
Interest income			268				271
Dividend income			38				112
Other Income			299				—
Net gains (losses) from investment activities			(623	)			(71	)
Total revenue — asset management		$	3,192			$	4,030

Fee Related Earnings ("FRE")

FRE is a non-IFRS financial measure used to assess the asset management segment's generation of profits from revenues that are measured and received on a recurring basis and are not dependent on future realization events. The Company calculates FRE, and reconciles FRE to net income from its asset management activities, as follows:

($ in Thousands)

	Three Months Ended
	March 31, 2025				March 31, 2024
Net income (loss) and comprehensive income (loss)	$	(13,323	)		$	13,092
Adjustment to net income (loss) and comprehensive income (loss):
Total revenue - insurance (1)		(18,982	)			(17,555	)
Total expenses - insurance		23,280				822
Net income - asset management (2)		(9,025	)			(3,641	)
Adjustments to non-fee generating asset management business and other recurring revenue stream:
Management fee from Ability		1,566				1,429
Interest income		—				—
Dividend income		(39	)			(112	)
Net gains (losses) from investment activities(3)		623				71
Administration and servicing fees		504				366
Transaction costs		4,545				251
Amortization and impairment of intangible assets		737				346
Interest and other credit facility expenses		1,857				1,702
General, administrative and other		1,479				1,233
Fee Related Earnings	$	2,247			$	1,645

^{(1)    Includes add-back of management fees paid to ML Management.}

^{(2)    Represents net income for asset management, as presented in the interim Consolidated Statement of Comprehensive Income (Loss).}

^{(3)    Includes unrealized gains or losses on the debt warrants.}

($ in Thousands)	Trailing Twelve Months Ended
	March 31, 2025				March 31, 2024
Net income (loss) and comprehensive income (loss)	$	(20,826	)		$	26,088
Adjustment to net income (loss) and comprehensive income (loss):
Total revenue - insurance (1)		(65,582	)			(76,512	)
Total expenses - insurance		60,979				35,450
Net income - asset management (2)		(25,429	)			(14,974	)
Adjustments to non-fee generating asset management business and other recurring revenue stream:
Management fee from Ability		6,162				4,853
Interest income		(1	)			—
Dividend income		(425	)			(640	)
Net gains (losses) from investment activities(3)		1,995				157
Administration and servicing fees		1,743				1,228
Transaction costs		6,468				3,814
Amortization and impairment of intangible assets		4,369				1,178
Interest and other credit facility expenses		8,090				6,425
General, administrative and other		5,177				4,481
Fee Related Earnings	$	8,149			$	6,522

^{(1)    Includes add-back of management fees paid to ML Management.}

^{(2)    Represents net income for asset management, as presented across the interim Consolidated Statements of Comprehensive Income (Loss).}

^{(3)    Includes unrealized gains or losses on the debt warrants.}

Insurance

Total Revenue – Insurance

($ in Thousands)

		Three Months Ended
		March 31, 2025				March 31, 2024
Insurance service result		$	(2,197	)		$	(3,092	)
Net investment income			19,004				21,804
Net gains (losses) from investment activities			6,958				2,666
Realized and unrealized gains (losses) on embedded derivative — funds withheld			(4,783	)			(3,829	)
Other income			—				6
Total revenue — net of insurance services expenses and net expenses from reinsurance		$	18,982			$	17,555

Spread Related Earnings ("SRE")

 

The Company uses SRE to assess the performance of the insurance segment, excluding the impact of certain market volatility and other one-time, non-core components of insurance segment income (loss). Excluded items under SRE are investment gains (losses), effects of discount rates and other financial variables on the value of insurance obligations (which is a component of "net insurance finance income/(expense)"), other income and certain general, administrative & other expenses. The Company believes this measure is useful to securityholders as it provides additional insight into the underlying economics of the insurance segment, as further discussed below.

For the insurance segment, SRE equals the sum of (i) the net investment income on the insurance segment's net invested assets (excluding investment income earned on funds held under reinsurance contracts) less (ii) cost of funds (as described below) and (iii) certain operating expenses.

Cost of funds includes the impact of interest accretion on insurance and investment contract liabilities and amortization of losses recognized for new insurance contracts that are deemed onerous at initial recognition. It also includes experience adjustments which represents the difference between actual and expected cashflows and includes the impact of certain changes to non-financial assumptions.

The Company reconciles SRE to net income (loss) before tax from its insurance segment activities, as follows:

	Three Months Ended
	Q1-2025				Q4-2024				Q3-2024				Q2-2024				Q1-2024				Q4-2023				Q3-2023				Q2-2023
Net income (loss) and comprehensive income (loss) before tax	$	(13,639	)		$	6,522			$	(17,378	)		$	3,847			$	13,148			$	(1,946	)		$	16,243			$	(903	)
Adjustment to net income (loss) and comprehensive income (loss):
Total revenue - asset management (1)		(3,192	)			(4,442	)			(3,826	)			(3,394	)			(4,030	)			(3,723	)			(3,186	)			(2,996	)
Total expenses - asset management		12,533				13,440				7,481				6,651				7,615				7,839				6,868				6,133
Net income - insurance (2)		(4,298	)			15,520				(13,723	)			7,104				16,733				2,170				19,925				2,234
Adjustments to Insurance segment business:
Management fees to ML Management		(1,167	)			(1,167	)			(1,501	)			(1,529	)			(1,429	)			(1,345	)			(1,110	)			(969	)
Net (gains) losses from investment activities(3)		(5,718	)			17,681				(13,267	)			887				(2,995	)			(10,116	)			(2,113	)			(1,454	)
Other Income(4)		—				—				—				—				—				(7,353	)			—				—
Net insurance finance (income)/expense(5)		12,506				(28,702	)			30,940				(5,442	)			(11,769	)			14,399				(17,684	)			(5,275	)
Loss on onerous contracts(6)		(1,548	)			(545	)			(822	)			945				6,884				286				2,451				4,214
General, administrative and other(7)		600				338				239				464				447				502				1,289				1,546
Spread Related Earnings	$	375			$	3,125			$	1,866			$	2,429			$	7,871			$	(1,457	)		$	2,758			$	296

^{(1)    Includes add-back of management fees paid by Ability to ML Management.}

^{(2)    Represents net income before tax for the insurance segment, as presented in the annual Consolidated Statement of Comprehensive Income (Loss).}

^{(3)    Excludes net (gains) losses from investment activities on assets retained by the Company under funds withheld arrangement with Front Street Re and Vista.}

^{(4)    Represents non-operating income.}

^{(5)    Includes the impact of changes in interest rates and other financials assumptions and excludes interest accretion on insurance contract liabilities and reinsurance contract assets.}

^{(6)    Represents the unamortized portion of future interest accretion and ceded commissions paid at the time of issue of new MYGA insurance contracts. Future interest accretion and ceded commissions are amortized over the average duration of MYGA contracts reinsured which aligns with the recognition of insurance service revenue. Loss on onerous contracts are part of Insurance service expense.}

^{(7)    Represents certain costs incurred by the insurance segment for purposes of IFRS reporting but not the day to day operations of the insurance company.}

The following table presents SRE, the performance measure of the insurance segment:

($ in Thousands)

	Trailing Twelve Months Ended
	March 31, 2025				March 31, 2024
Fixed Income and other investment income, net(1)	$	54,342			$	50,502
Cost of funds		(38,352	)			(32,318	)
Net Investment spread		15,990				18,184
Other operating expenses		(8,195	)			(8,716	)
Spread Related Earnings	$	7,795			$	9,468
SRE % of Average Net Investments		1.3	%			1.7	%

^{(1)    Excludes net investment income from investment activities on assets retained by the Company under funds withheld arrangement with Front Street Re and Vista Life and Casualty Reinsurance Company ("Vista").}

Spread related earnings ("SRE") was $7.8 million for the trailing twelve months ended March 31, 2025 compared with $9.5 million for the trailing twelve months ended March 31, 2024, a decrease of $1.7 million. SRE decreased year over year due to higher cost of funds, partially offset by increased investment income and lower other operating expenses. Cost of funds increased primarily due to unfavorable impact of $1.8 million as a result of in-force update to LTC business (Guardian block) whereas the trailing twelve months ended March 31, 2024 had a favorable in-force impact of $4.8 million to LTC business (Medico block). Investment income increased primarily due to an increase in total insurance investment assets as a result of new multi-year guaranteed annuity ("MYGA") business and improvement in yield across the investment portfolio. Other operating expenses decreased as a result of efforts to reduce overall operating cost.

SRE as a percentage of average net invested assets was 1.3% for the trailing twelve months ended March 31, 2025 compared with 1.7% for the trailing twelve months ended March 31, 2024.

Liquidity and Capital Resources

As of March 31, 2025, the asset management segment had $77.8 million (par value) of borrowings outstanding, of which $33.8 million had a fixed rate and $44.0 million had a floating rate. As of March 31, 2025, the insurance segment had $17.3 million (par value) of borrowings outstanding, of which $14.3 million had a fixed rate and $3.0 million had a floating rate. Liquid assets, including high-quality assets that are marketable, can be pledged as security for borrowings, and can be converted to cash in a time frame that meets liquidity and funding requirements. As of March 31, 2025 and December 31, 2024, the total liquid assets of the Company were as follows:

($ in Thousands)

As at		March 31, 2025				December 31, 2024
Cash and cash equivalents		$	125,808			$	85,988
Restricted cash posted as collateral			12,526				15,716
Investments			609,514				639,932
Management fee receivable			2,927				3,268
Receivable for investments sold			23				17,045
Accrued interest and dividend receivable			20,959				20,489
Total liquid assets		$	771,757			$	782,438

The Company defines working capital as the sum of cash, restricted cash, investments that mature within one year of the reporting date, management fees receivable, receivables for investments sold, accrued interest and dividend receivables, and premium receivables, less the sum of debt obligations, payables for investments purchased, amounts due to affiliates, reinsurance liabilities, and other liabilities that are payable within one year of the reporting date.

As at March 31, 2025, the Company had working capital of $218.8 million, reflecting current assets of $241.7 million, offset by current liabilities of $22.9 million, as compared with working capital of $231.2 million as at December 31, 2024, reflecting current assets of $245.3 million, offset by current liabilities of $14.1 million. The decrease in working capital was primarily attributable to the decrease in cash within the asset management business combined with the increase in accrued expenses across asset management and insurance.

Interest Rate Risk

The Company has obligations to policyholders and other debt obligations that expose it to interest rate risk. The Company also owns debt assets and interest rate swaps that are exposed to interest rate risk. The fair value of these obligations and assets may change if base rate changes in interest rates occur.

The following table summarizes the potential impact on net assets of hypothetical base rate changes in interest rates assuming a parallel shift in the yield curve, with all other variables remaining constant.

As at		March 31, 2025				December 31, 2024
50 basis point increase (1)		$	(8,836	)		$	7,559
50 basis point decrease (1)			5,913				(18,939	)

^{(1)    Losses are presented in brackets and gains are presented as positive numbers.}

Actual results may differ significantly from this sensitivity analysis. As such, the sensitivities should only be viewed as directional estimates of the underlying sensitivities for the respective factors based on the assumptions outlined above.

Conference Call

The Company will hold a conference call on Friday, May 16, 2025 at 11:00 a.m. Eastern Time to discuss the first quarter financial results. Shareholders, prospective shareholders, and analysts are welcome to listen to the call. To join the call, please use the dial-in information below. A recording of the conference call will be available on our Company's website www.mountlogancapital.ca in the ‘Investor Relations' section under "Events".

Canada Dial-in Toll Free: 1-833-950-0062

US Dial-in Toll Free: 1-833-470-1428

International Dial-ins

Access Code: 813165

About Mount Logan Capital Inc.

Mount Logan Capital Inc. is an alternative asset management and insurance solutions company that is focused on public and private debt securities in the North American market and the reinsurance of annuity products, primarily through its wholly owned subsidiaries Mount Logan Management LLC ("ML Management") and Ability Insurance Company ("Ability"), respectively. Mount Logan also actively sources, evaluates, underwrites, manages, monitors and primarily invests in loans, debt securities, and other credit-oriented instruments that present attractive risk-adjusted returns and present low risk of principal impairment through the credit cycle.

ML Management was organized in 2020 as a Delaware limited liability company and is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940, as amended. The primary business of ML Management is to provide investment management services to (i) privately offered investment funds exempt from registration under the Investment Company Act of 1940, as amended (the "1940 Act") advised by ML Management, (ii) a non-diversified closed end management investment company that has elected to be regulated as a business development company, (iii) Ability, and (iv) non-diversified closed-end management investment companies registered under the 1940 Act that operate as interval funds. ML Management also acts as the collateral manager to collateralized loan obligations backed by debt obligations and similar assets.

Ability is a Nebraska domiciled insurer and reinsurer of long-term care policies and annuity products acquired by Mount Logan in the fourth quarter of fiscal year 2021. Ability is also no longer insuring or re-insuring new long-term care risk.

Non-IFRS Financial Measures

This press release makes reference to certain non-IFRS financial measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS financial measures by providing further understanding of the Company's results of operations from management's perspective. The Company's definitions of non-IFRS measures used in this press release may not be the same as the definitions for such measures used by other companies in their reporting. Non-IFRS measures have limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures in the evaluation of issuers. The Company's management also uses non-IFRS financial measures in order to facilitate operating performance comparisons from period to period.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements and information within the meaning of applicable securities legislation. Forward-looking statements can be identified by the expressions "seeks", "expects", "believes", "estimates", "will", "target" and similar expressions. The forward-looking statements are not historical facts but reflect the current expectations of the Company regarding future results or events and are based on information currently available to it. Certain material factors and assumptions were applied in providing these forward-looking statements. The forward-looking statements discussed in this release include, but are not limited to, statements about the benefits of the closing of the acquisition of a minority interest in Runway as well as the proposed transaction involving the Company and 180 Degree Capital, including future financial and operating results, the Company's and 180 Degree Capital's plans, objectives, expectations and intentions, the expected timing and likelihood of completion of the proposed transaction, the regulatory environment in which the Company operates, and the results of, or outlook for, the Company's operations or for the Canadian and U.S. economies, statements relating to the Company's continued transition to an asset management and insurance platform business and the entering into of further strategic transactions to diversify the Company's business and further grow recurring management fee and other income and increasing Ability's assets; the Company's plans to focus Ability's business on the reinsurance of annuity products; the potential benefits of combining Mount Logan's and Ovation's platform including an increase in fee-related earnings as a result of the acquisition; the decrease in expenses in the asset management segment; the historical growth in the asset management segment and insurance segment being an indicator for future growth; the growth and scalability of the Company's business the Company's business strategy, model, approach and future activities; portfolio composition and size, asset management activities and related income, capital raising activities, future credit opportunities of the Company, portfolio realizations, the protection of stakeholder value; the expansion of the Company's loan portfolio; synergies to be achieved by both the Company and Runway through the Company's strategic minority investment in Runway; and the expansion of Mount Logan's capabilities. All forward-looking statements in this press release are qualified by these cautionary statements. The Company believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, the Company can give no assurance that the actual results or developments will be realized by certain specified dates or at all. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including that the Company has a limited operating history with respect to an asset management oriented business model; Ability may not generate recurring asset management fees, increase its assets or strategically benefit the Company as expected; the expected synergies by combining the business of Mount Logan with the business of Ability may not be realized as expected; the risk that Ability may require a significant investment of capital and other resources in order to expand and grow the business; the Company does not have a record of operating an insurance solutions business and is subject to all the risks and uncertainties associated with a broadening of the Company's business; ability to obtain the requisite Company and 180 Degree Capital shareholder approvals, as well as governmental and regulatory approvals required for the proposed transaction with 180 Degree Capital, the risk that an event, change or other circumstance could give rise to the termination of the proposed transaction with 180 Degree Capital, the risk that a condition to closing of the proposed transaction with 180 Degree Capital may not be satisfied, the risk of delays in completing the proposed transaction with 180 Degree Capital, the risk that the businesses of the Company and with 180 Degree Capital will not be integrated successfully, the risk that the expected synergies of the acquisition of Ovation may not be realized as expected and the matters discussed under "Risks Factors" in the most recently filed annual information form and management discussion and analysis for the Company. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by securities laws. These forward-looking statements are made as of the date of this press release.

This press release is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and the communication of this release is not, and under no circumstances is it to be construed as, an offer to sell or an offer to purchase any securities in the Company or in any fund or other investment vehicle. This press release is not intended for U.S. persons. The Company's shares are not and will not be registered under the U.S. Securities Act of 1933, as amended, and the Company is not and will not be registered under the U.S. Investment Company Act of 1940 (the "1940 Act"). U.S. persons are not permitted to purchase the Company's shares absent an applicable exemption from registration under each of these Acts. In addition, the number of investors in the United States, or which are U.S. persons or purchasing for the account or benefit of U.S. persons, will be limited to such number as is required to comply with an available exemption from the registration requirements of the 1940 Act.

Contacts:

Mount Logan Capital Inc.

365 Bay Street, Suite 800

Toronto, ON M5H 2V1

[email protected]

Nikita Klassen

Chief Financial Officer

[email protected]

Scott Chan

Investor Relations

[email protected]

MOUNT LOGAN CAPITAL INC. CONSOLIDATED STATEMENT OF FINANCIAL POSITION (in thousands of United States dollars, except share and per share amounts)
As at		Notes		March 31, 2025				December 31, 2024
ASSETS
Asset Management:
Cash				$	2,563			$	8,933
Investments		6			25,605				21,668
Intangible assets		9			24,064				24,801
Other assets					8,622				8,187
Total assets — asset management					60,854				63,589
Insurance:
Cash and cash equivalents					123,245				77,055
Restricted cash posted as collateral		18			12,526				15,716
Investments		6			1,019,969				1,045,436
Reinsurance contract assets		13			408,492				392,092
Intangible assets		9			2,444				2,444
Goodwill		9			55,015				55,015
Other assets					21,298				38,183
Total assets — insurance					1,642,989				1,625,941
Total assets				$	1,703,843			$	1,689,530
LIABILITIES
Asset Management
Due to affiliates		10		$	8,994			$	10,470
Debt obligations		12			78,401				78,427
Derivatives - debt warrants		12			737				504
Accrued expenses and other liabilities					9,770				5,097
Total liabilities — asset management					97,902				94,498
Insurance
Debt obligations		12			17,250				14,250
Insurance contract liabilities		13			1,069,625				1,048,413
Investment contract liabilities		14			222,074				227,041
Derivatives		18			1,864				5,192
Funds held under reinsurance contracts					238,371				239,918
Accrued expenses and other liabilities					7,856				2,995
Total liabilities — insurance					1,557,040				1,537,809
Total liabilities					1,654,942				1,632,307
EQUITY
Common shares		11			121,372				116,118
Warrants		11			1,129				1,129
Contributed surplus					8,063				7,917
Surplus (Deficit)					(59,805	)			(46,083	)
Cumulative translation adjustment					(21,858	)			(21,858	)
Total equity					48,901				57,223
Total liabilities and equity				$	1,703,843			$	1,689,530

MOUNT LOGAN CAPITAL INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands of United States dollars, except share and per share amounts)
			Three months ended
		Notes	March 31, 2025				March 31, 2024
REVENUE
Asset management
Management and incentive fee		7	$	2,928			$	3,494
Equity investment earning				282				224
Interest income				268				271
Dividend income				38				112
other Income				299
Net gains (losses) from investment activities		4		(623	)			(71	)
Total revenue — asset management				3,192				4,030
Insurance
Insurance revenue		8		23,389				22,741
Insurance service expenses		8		(25,534	)			(25,184	)
Net expenses from reinsurance contracts held		8		(52	)			(649	)
Insurance service result				(2,197	)			(3,092	)
Net investment income		5		19,004				21,804
Net gains (losses) from investment activities		4		6,958				2,666
Realized and unrealized gains (losses) on embedded derivative — funds withheld				(4,783	)			(3,829	)
Other income				—				6
Total revenue, net of insurance service expenses and net expenses from reinsurance contracts held — insurance				18,982				17,555
Total revenue				22,174				21,585
EXPENSES
Asset management
Administration and servicing fees		10		1,237				1,423
Transaction costs				4,545				251
Amortization and impairment of intangible assets		9		737				346
Interest and other credit facility expenses		12		1,857				1,702
General, administrative and other				4,202				3,893
Total expenses — asset management				12,578				7,615
Insurance
Net insurance finance (income) expenses		5		17,808				(7,252	)
Increase (decrease) in investment contract liabilities		14		1,957				2,279
(Increase) decrease in reinsurance contract assets				966				3,556
General, administrative and other				2,549				2,239
Total expenses — insurance				23,280				822
Total expenses				35,813				8,437
Income (loss) before taxes				(13,684	)			13,148
Income tax (expense) benefit — asset management		15		361				(56	)
Net income (loss) and comprehensive income (loss)			$	(13,323	)		$	13,092
Earnings per share
Basic			$	(0.48	)		$	0.51
Diluted			$	(0.48	)		$	0.50
Dividends per common share — USD			$	0.01			$	0.02
Dividends per common share — CAD			$	0.02			$	0.02

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¹The yield is calculated based on the net investment income less management fees paid to Mount Logan divided by the average of investments in financial assets for the current year and prior year.