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Mount Logan Capital (Nasdaq: MLCI) posts wider Q2 loss, stronger segment income

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(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Mount Logan Capital Inc. reported mixed results for the quarter ended June 30, 2026. Total revenue was $8.7 million, down 49% from the prior-year quarter, driven mainly by lower Asset Management and Insurance Solutions revenues. The company recorded a consolidated net loss of $4.2 million, compared with a $0.9 million loss a year earlier, and basic loss per share widened to $0.37 from $0.14.

Despite the GAAP loss, profitability on a management basis improved. Segment Income rose to $4.3 million, an increase of $2.1 million year-over-year, supported by a turnaround in Insurance Solutions where Spread-Related Earnings reached $2.9 million versus a small loss in 2025. Insurance investment assets produced a 6.2% yield, or 6.6% excluding funds withheld and Modco. Assets under management were $2.0 billion as of June 30, 2026, and Ability Insurance Company received a B+ Financial Strength Rating from AM Best. The company declared a $0.03 quarterly cash dividend, its fourth consecutive such distribution following the business combination, and highlighted a pending acquisition of over $100 million of Yieldstreet Alternative Income Fund assets, estimated to add $2.8 million in annual Fee-Related Earnings.

Positive

  • Segment Income increased to $4.3 million for Q2 2026, up $2.1 million year-over-year, reflecting stronger underlying segment profitability despite the GAAP loss.
  • Insurance Solutions Spread-Related Earnings improved to $2.9 million from ($0.1) million a year earlier, showing a significant turnaround in insurance spread performance.
  • Ability Insurance Company received an AM Best Financial Strength Rating of B+ (Good) and Long-Term Issuer Credit Rating of bbb- (Good), supporting the insurance growth strategy.
  • A pending transaction to acquire $100+ million of assets from Yieldstreet Alternative Income Fund is estimated to increase annual Fee-Related Earnings by $2.8 million or more.
  • The board declared a quarterly cash distribution of $0.03 per share, marking the fourth consecutive quarter at this level following the business combination.

Negative

  • Total revenue fell to $8.7 million in Q2 2026 from $17.1 million in Q2 2025, a decline of 49% driven by weaker Asset Management and Insurance Solutions revenues.
  • Consolidated net loss widened to $4.2 million from $0.9 million year-over-year, and basic loss per share increased in magnitude to ($0.37) from ($0.14).
  • Total capital was $171.1 million at June 30, 2026, a decrease of $14.2 million compared with December 31, 2025, reflecting pressure on the balance sheet.
  • Asset Management Fee-Related Earnings declined to $1.4 million from $2.2 million in the prior-year quarter, indicating reduced profitability in the fee business.

Insights

Analyzing...

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Total revenue Q2 2026 $8,747 (thousands) Three months ended June 30, 2026; down from $17,130 (thousands) in Q2 2025
Net loss Q2 2026 $4,177 (thousands) Net loss for the three months ended June 30, 2026 vs $934 (thousands) in 2025
Basic EPS Q2 2026 ($0.37) per share Net loss per basic and diluted share for Q2 2026 vs ($0.14) in Q2 2025
Segment Income Q2 2026 $4,266 (thousands) Segment Income for the three months ended June 30, 2026; up from $2,146 (thousands)
Assets under management $2.0 billion Total AUM as of June 30, 2026, including Ability’s assets managed by Mount Logan
Insurance portfolio yield 6.2% Yield on insurance investment portfolio for Q2 2026; 6.6% excluding funds withheld and Modco
Quarterly dividend $0.03 per share Cash distribution for quarter ended June 30, 2026, fourth consecutive at this level
Total equity $60,761 (thousands) Total equity as of June 30, 2026 on the condensed consolidated statement of financial position
funds withheld under reinsurance contracts financial
"Excluding the funds withheld under reinsurance contracts and modified coinsurance"
variable interest entities financial
"total net investment income for the Insurance Solutions segment including net investment income of consolidated variable interest entities"
A variable interest entity (VIE) is a business that a company controls through contracts or special arrangements instead of owning a majority of its shares, like steering a puppet without holding its ticket. Investors care because these arrangements can hide who really bears the financial risks and rewards, affect how assets and liabilities appear on financial statements, and create extra legal or enforcement uncertainty that can change the value and risk of an investment.
Financial Strength Rating financial
"assigned a Financial Strength Rating of B+ “(Good)” and a Long-Term Issuer Credit Rating"
A financial strength rating is an assessment of an organization's overall financial health, indicating how well it can meet its financial commitments. Think of it as a report card that shows whether a company or institution is financially stable and capable of withstanding economic challenges. This rating helps investors gauge the level of risk involved in engaging with or investing in that organization.
Total revenue $8,747 (thousands) -49% vs $17,130 (thousands) in Q2 2025
Net income (loss) ($4,177) (thousands) Loss increased from ($934) (thousands) in Q2 2025
Basic EPS ($0.37) More negative than ($0.14) in Q2 2025
Segment Income $4,266 (thousands) Increased by $2,120 (thousands) year-over-year

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How did Mount Logan Capital (MLCI) perform financially in Q2 2026?
Mount Logan reported Q2 2026 revenue of $8.7 million, down 49% year-over-year, and a net loss of $4.2 million versus a $0.9 million loss in Q2 2025. Basic loss per share was $0.37.

What was Mount Logan Capital (MLCI)’s Segment Income in Q2 2026?
Segment Income for Q2 2026 was $4.3 million, an increase of $2.1 million from the prior-year quarter. This measure combines Fee-Related Earnings and Spread-Related Earnings and improved despite weaker GAAP results.

How did the Asset Management and Insurance segments of MLCI perform?
Asset Management revenue was $2.3 million, down 32%, with Fee-Related Earnings of $1.4 million. Insurance Solutions generated net investment income of $18.5 million including VIEs and $2.9 million of Spread-Related Earnings, a sharp improvement from 2025.

What is Mount Logan Capital (MLCI)’s AUM and insurance investment yield?
As of June 30, 2026, Mount Logan had $2.0 billion in assets under management. The Insurance Solutions investment portfolio achieved a 6.2% yield for the quarter, or 6.6% excluding funds withheld and Modco assets.

What strategic updates did Mount Logan Capital (MLCI) announce regarding Ability and Yieldstreet?
Ability Insurance Company received a B+ (Good) AM Best rating. A Mount Logan–managed fund agreed to acquire $100+ million of Yieldstreet Alternative Income Fund assets, expected to add about $2.8 million in annual Fee-Related Earnings, subject to closing.

Did Mount Logan Capital (MLCI) declare a dividend for Q2 2026?
Yes. The company declared a quarterly cash distribution of $0.03 per share for the quarter ended June 30, 2026, payable on August 31, 2026, to shareholders of record on August 21, 2026.
false000205182000020518202026-08-112026-08-110002051820us-gaap:CommonStockMember2026-08-112026-08-110002051820yukon:SeniorNoteDue2031Member2026-08-112026-08-11

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934

Date of Report (Date of earliest event reported): August 11, 2026

MOUNT LOGAN CAPITAL INC.
(Exact name of registrant as specified in its charter)

Delaware
001-42813
33-2698952
(State or other jurisdiction of
incorporation or organization)
(Commission File Number)
(I.R.S. Employer
Identification Number)
650 Madison Avenue, 3rd Floor
New York, New York
(Address of principal executive offices)
10022
(Zip Code)
(212) 891-2880
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report.)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class
Trading Symbol
Name of each exchange on which registered
Common Stock, $0.001 par value
MLCI
The Nasdaq Stock Market LLC
8.00% Senior Notes Due 2031
MLCIL
The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b 2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02     Results of Operations and Financial Condition.
On August 11, 2026, Mount Logan Capital Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2026. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference in this Item 2.02.

The information in Item 2.02 of this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing, regardless of any general incorporation language in any such filing, unless the Company expressly sets forth in such filing that such information is to be considered “filed” or incorporated by reference therein.

Item 9.01    Financial Statements and Exhibits.    
(d) Exhibits
Exhibit No.

Description
99.1
Press Release dated August 11, 2026
104

Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MOUNT LOGAN CAPITAL INC.
Date:
August 11, 2026
By:
/s/ Brandon Satoren

Name:
Brandon Satoren


Title:
Chief Financial Officer


FOR IMMEDIATE RELEASE
image_0.jpg
Mount Logan Capital Inc. Announces Second Quarter 2026 Financial Results

Segment Income for the quarter improved to $4.3 million, an increase of $2.1 million year-over-year, and $1.0 million as compared to first quarter 2026

Strong quarter for Insurance Solutions with SRE1 of $2.9 million, up $3.0 million year-over-year, and $0.9 million as compared to the first quarter of 2026. Asset Management FRE1 decreased to $1.4 million from $2.2 million in the prior year quarter, but increased $0.2 million from first quarter 2026

FRE of $2.6 million and SRE of $4.9 million for the first half of 2026, resulting in Segment Income of $7.5 million1 representing a 69% increase, or $3.1 million, as compared to the prior year period

Mount Logan continues to make progress on key strategic and operational initiatives including its insurance growth strategy, whereby Ability received its B+ AM Best Rating after quarter-end

After quarter-end, the pending Yieldstreet Alternative Income Fund transaction received the requisite approvals and is expected to close in the third quarter of 2026

Mount Logan to host an earnings conference call and webcast on August 12, 2026 at 10:00 AM Eastern Daylight Time (EDT)

NEW YORK, August 11, 2026 – Mount Logan Capital Inc. (Nasdaq: MLCI) (“Mount Logan” or the “Company”) announced today its financial results for the second quarter ended June 30, 2026.

Management Commentary
•Ted Goldthorpe, Chief Executive Officer and Chairman of Mount Logan stated, “Sequential improvement in Segment Income reflects the progress we are making as we increase scale, control costs, and execute against our growth initiatives. Ability's investment-grade rating from AM Best, together with the pending Yieldstreet transaction, marks meaningful progress in unlocking the earnings potential of our integrated asset management and insurance platform. We believe Mount Logan is well positioned to generate durable earnings growth and long-term shareholder value in the quarters ahead."

Second Quarter Financial and Business Highlights2
•Total revenue for the Asset Management segment was $2.3 million for the quarter, a decrease of $1.1 million, or 32% compared to the second quarter of 2025. Asset Management revenues exclude $1.6 million of intercompany
1 FRE, SRE and Segment Income are non-GAAP financial measures that the Company believes provide valuable perspective on its business results. With respect to FRE, SRE and Segment Income for completed periods, refer to tables elsewhere in this press release for a reconciliation to the comparable GAAP measure.
2 As discussed in Note 1 and Note 3 to our condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, on September 12, 2025, we completed a business combination with 180 Degree Capital Corp. (the “Business Combination”). Therefore, our consolidated financial results present the historical results of Mount Logan Capital Intermediate LLC (f/k/a Mount Logan Capital Inc) prior to September 12, 2025, and those of the combined company on and subsequent to that date.


management fees earned from managing the assets of Ability Insurance Company ("Ability"), which remained flat from the same 2025 period.
•Fee-Related Earnings (“FRE”) for the Asset Management segment were $1.4 million for the second quarter of 2026, down $0.9 million compared to $2.2 million for the second quarter of 2025.
•Total net investment income for the Insurance Solutions segment including net investment income of consolidated variable interest entities ("VIEs") was $18.5 million for the second quarter of 2026, a decrease of $2.0 million, or 10%, compared to second quarter of 2025. Excluding the funds withheld assets under reinsurance contracts and modified coinsurance ("Modco") arrangements, the Insurance Solutions segment’s net investment income was $13.0 million, a decrease of $0.1 million, or 1%, compared to the second quarter of 2025.
•Achieved a 6.2%3 yield on the insurance investment portfolio for the second quarter of 2026. Excluding the funds withheld under reinsurance contracts and modified coinsurance, the yield was 6.6%.
•Spread-Related Earnings (“SRE”) for the Insurance Solutions segment was $2.9 million for the second quarter of 2026, compared to ($0.1) million for the second quarter of 2025.
•Mount Logan's total assets under management ("AUM") was $2.0 billion as of June 30, 2026 and is inclusive of Ability’s assets managed by Mount Logan. Ability's assets excluding intangible assets and the funds withheld assets under reinsurance contracts and Modco, were $784.5 million as of June 30, 2026, a decrease of $6.7 million from the second quarter of 2025. As of June 30, 2026, the Insurance Solutions segment held approximately $1.0 billion of total investment assets, an increase of $28.5 million from the second quarter of 2025. Including Modco assets, Ability's total assets managed by Mount Logan is $953.0 million, an increase of $126.0 million compared to second quarter of 2025.

Subsequent Events and Strategic Updates
•AM Best, a leading, global credit rating agency specializing in the insurance industry, assigned a Financial Strength Rating of B+ “(Good)” and a Long-Term Issuer Credit Rating of bbb- “(Good)” to the Company's wholly-owned life and annuity insurance subsidiary, Ability.
•As previously announced, Mount Logan–managed Opportunistic Credit Interval Fund (“SOFIX”) signed a definitive agreement to acquire $100+ million of assets from Yieldstreet Alternative Income Fund Inc. (“YS AIF”), which is expected to close in the third quarter of 2026, subject to regulatory approvals, and is estimated to increase FRE by $2.8 million4 or more on a full year basis. On July 31, 2026, Yieldstreet's shareholders voted in favor of the transaction.
•Declared a stockholder quarterly distribution in the amount of $0.03 per share of common stock for the quarter ended June 30, 2026, payable on August 31, 2026 to stockholders of record at the close of business on August 21, 2026. This cash dividend marks the fourth consecutive quarter of the Company issuing a $0.03 distribution to its stockholders following the closing of the Business Combination.

Selected Financial Highlights
•Total capital of the Company was $171.1 million at June 30, 2026, a decrease of $14.2 million as compared to December 31, 2025. Total capital consists of debt obligations and total shareholders’ equity.
•Consolidated net loss before taxes was $4.2 million for the second quarter of 2026, compared with a loss of $0.9 million for the second quarter of 2025. Net loss position widened primarily due to net realized and change in unrealized losses from investments in Insurance Solutions.
3 The 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 period and prior period.
4 Estimated FRE contribution from acquired assets based on current management and incentive fee structure of SOFIX with $100 million in additional assets. Actual contribution of the incentive fee portion of this amount is dependent on performance and actual results may differ materially from these projections. See “Estimates and Assumptions” for additional information.
2


•Consolidated basic loss per share (“EPS”) was $0.37 for the second quarter of 2026, compared to $0.14 for the second quarter of 2025.

Conference Call and Webcast Details
Mount Logan will hold a conference call to discuss its quarterly results on Wednesday, August 12, 2026 at 10:00 a.m. ET. Participants may access the conference call via webcast using this Webcast Link. To participate via telephone, please register in advance using this Registration Link. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial in 10 minutes prior to the start time. A replay of the conference call and webcast will be available on-demand via the Company’s investor relations webpage at
https://ir.mountlogan.com/ for 12 months.


3


Results of Operations by Segment
Three months ended June 30,Six months ended June 30,
20262025Change ($)Change (%)20262025Change ($)Change (%)
($ in thousands)
REVENUES
Asset Management
Management fees$1,691 $2,809 $(1,118)-40 %$3,330 $6,049 $(2,719)(45)%
Incentive fees419 478 (59)-12 %813 777 36 5 %
Advisory and transaction fees, net— — — NM66 — 66 NM
Equity investment earning 153 42 111 264 %515 324 191 59 %
2,263 3,329 (1,066)-32 %4,724 7,150 (2,426)(34)%
Insurance Solutions
Net Premiums(4,474)(4,238)(236)6 %(8,718)(8,251)(467)6 %
Product charges168 722 (554)-77 %286 1,582 (1,296)(82)%
Net investment income15,269 16,678 (1,409)-8 %31,945 31,629 316 1 %
Net realized and change in unrealized gains (losses) from investment activities484 3,838 (3,354)-87 %(4,530)5,310 (9,840)(185)%
Net revenues of consolidated variable interest entities1,997 3,549 (1,552)-44 %1,864 7,182 (5,318)(74)%
Net investment income (loss) on funds withheld(6,935)(6,826)(109)2 %(6,321)(12,576)6,255 (50)%
Other income(25)78 (103)-132 %144 154 (10)(6)%
6,484 13,801 (7,317)-53 %14,670 25,030 (10,360)(41)%
Total revenues$8,747 $17,130 $(8,383)-49 %$19,394 $32,180 $(12,786)(40)%
EXPENSES
Asset Management
Administration and servicing fees3,305 1,812 1,493 82 %6,944 3,049 3,895 128 %
Transaction costs(48)2,753 (2,801)-102 %34 7,298 (7,264)(100)%
Compensation and benefits215 1,836 (1,621)-88 %426 4,216 (3,790)(90)%
Amortization and impairment of intangible assets674 1,889 (1,215)-64 %1,118 2,799 (1,681)(60)%
Interest and other credit facility expenses2,172 1,960 212 11 %4,177 3,906 271 7 %
General, administrative and other1,865 1,258 607 48 %4,873 2,981 1,892 63 %
8,183 11,508 (3,325)-29 %17,572 24,249 (6,677)(28)%
Insurance Solutions
Net policy benefit and claims (remeasurement gain on policy liabilities of $6,064 and $10,523 and $2,945 and $3,025 for the three and six months ended June 30, 2026 and 2025, respectively)
(4,281)(1,064)(3,217)302 %(6,916)729 (7,645)(1049)%
Interest sensitive contract benefits4,179 3,997 182 5 %8,468 7,815 653 8 %
Amortization of deferred acquisition costs703 905 (202)-22 %1,411 1,460 (49)(3)%
Compensation and benefits— 223 (223)-100 %— 467 (467)(100)%
Interest expense318 407 (89)-22 %718 735 (17)(2)%
General, administrative and other (including related party amounts of $1,680 and $3,352 and $1,753 and $3,485 for the three and six months ended June 30, 2026 and 2025, respectively)
3,633 3,270 363 11 %7,894 6,956 938 13 %
4,552 7,738 (3,186)-41 %11,575 18,162 (6,587)-36 %
Total expenses$12,735 $19,246 $(6,511)-34 %$29,147 $42,411 $(13,264)(31)%
Investment and other income (Loss) - Asset Management
Net realized and change in unrealized gains (losses) from investment activities(967)867 (1,834)-212 %(1,318)1,708 (3,026)(177)%
Dividend income 5 29 (24)-83 %65 67 (2)(3)%
Interest income301 271 30 11 %685 539 146 27 %
Other income (loss), net472 6 466 7767 %646 305 341 112 %
Loss on extinguishment of debt— — — NM(472)— (472)NM
Total investment and other income (loss) (189)1,173 (1,362)-116 %(394)2,619 (3,013)(115)%
Income (loss) before taxes$(4,177)$(943)$(3,234)343 %$(10,147)$(7,612)$(2,535)33 %
Income tax (expense) benefit — Asset Management— 9 (9)-100 %— (27)27 (100)%
Net income (loss) $(4,177)$(934)$(3,243)347 %$(10,147)$(7,639)$(2,508)33 %
Note: “NM” denotes not meaningful.

4


Non-GAAP Financial Measures
In this release, the Company includes FRE and SRE, which are non-GAAP performance measures that the Company uses to supplement its results presented in accordance with U.S. generally accepted accounting principles (“GAAP”). As required by the rules of the Securities and Exchange Commission (“SEC”), the Company has provided herein a reconciliation of the non-GAAP financial measures contained in this press release to the most directly comparable measures under GAAP. The Company’s management believes FRE and SRE are useful in evaluating its operating performance and by providing these non-GAAP measures, the Company’s management intends to provide investors, securities analysts and other interested parties with a meaningful, consistent comparison of the Company’s profitability for the periods presented. These non-GAAP measures are not intended to be a substitute for GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.

Asset Management

Fee Related Earnings

FRE is a non-GAAP 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 as follows:

($ in Thousands)
Three months ended June 30,Six months ended June 30,
20262025Change ($)Change (%)20262025Change ($)Change (%)
Asset Management
Management fees$3,301 $4,422 $(1,121)(25)%$6,758 $8,829 $(2,071)(23)%
Incentive fees419 478 (59)(12)%813 777 36 5 %
Advisory and transaction fees, net— — — NM66 — 66 NM
Equity investment earnings153 42 111 264 %515 324 191 59 %
Interest income¹
271 271 — — %539 539 — — %
Other fee-related income468 — 468NM642 — 642 NM
Fee-related compensation(1,125)(1,105)(20)2 %(2,337)(2,573)236 (9)%
Other operating expenses:
Administration and servicing fees(1,498)(1,205)(293)24 %(2,857)(1,938)(919)47 %
General, administrative and other(621)(666)45 (7)%(1,535)(1,438)(97)7 %
Fee related earnings$1,368 $2,237 $(869)(39)%$2,604 $4,520 $(1,916)(42)%

Note: “NM” denotes not meaningful.
(1)Represents interest income on a loan asset related to a fee generating vehicle






5


Insurance

Spread Related Earnings

SRE is a non-GAAP financial measure used to assess the insurance solution segment’s generation of profits from revenues that are measured and received on a recurring basis, excluding certain market volatility. The Company calculates SRE as follows:

($ in Thousands)
Three months ended June 30,Six months ended June 30,
20262025Change ($)Change (%)20262025Change ($)Change (%)
Insurance Solutions
Net investment income and realized gain (loss), net $11,304 $10,993 $311 3 %$23,555 $24,005 $(450)(2)%
Cost of funds(4,906)(7,354)2,448 (33)%(11,394)(16,673)5,279 (32)%
Compensation and benefits— (223)223 (100)%— (467)467 (100)%
Interest expense(318)(407)89 (22)%(718)(735)17 (2)%
General, administrative and other(3,182)(3,100)(82)3 %(6,523)(6,184)(339)5 %
Spread related earnings$2,898 $(91)$2,989 (3285)%$4,920 $(54)$4,974 (9211)%


Segment Information

Segment Income is a measure of profitability and has certain limitations in that it does not take into account certain items included under U.S. GAAP. Segment Income is the sum of (i) Fee Related Earnings and (ii) Spread Related
6


Earnings. The following presents a reconciliation of Net Income (loss) attributable to Mount Logan common shareholders to Segment Income:
($ in Thousands)

Three months ended June 30,Six months ended June 30,
2026202520262025
Net income (loss) $(4,177)$(934)$(10,147)$(7,639)
Income tax (expense) benefit — Asset Management—9—(27)
Income (loss) before taxes$(4,177)$(943)$(10,147)$(7,612)
Asset Management Adjustments:
     Intersegment management fee eliminations1,6101,6133,4282,780
     Administration and servicing fees 1
6826071,7501,111
     Transaction costs(48)2,753347,298
     Compensation and benefits 1
135392346970
     Equity-based compensation8021980416
     Amortization and impairment of intangible assets6741,8891,1182,799
     Interest and other credit facility expenses2,1721,9604,1773,906
     General, administrative and other 1
1,2445923,3381,543
    Net realized and change in unrealized gains (losses) from investment activities967(867)1,318(1,708)
     Dividend income(5)(29)(65)(67)
     Interest income - bank interest(30)—(146)—
     Other income (loss), net(4)(6)(4)(305)
     Loss on extinguishment of debt——472—
Insurance Solutions Adjustments:——
     Equity-based compensation—120—257
     Net unrealized gains (losses) from investment activities2,100(4,633)3,858(4,760)
     Other income25(78)24(154)
     Intersegment management fee eliminations(1,610)(1,613)(3,428)(2,780)
     General, administrative and other 2
4511701,371772
Segment Income$4,266$2,146$7,524$4,466

(1)Represents corporate overhead allocated to each segment.
(2)Represents costs incurred by the insurance segment for purposes of U.S. GAAP reporting but not the day-to-day operations of the insurance company.


About Mount Logan Capital Inc.

Mount Logan Capital Inc. is an integrated alternative asset management and insurance solutions firm focused on generating durable, fee-based revenue and long-term value creation. The Company leverages differentiated investment strategies alongside permanent insurance capital to deliver attractive, risk-adjusted returns across market cycles.

Through its subsidiaries, Mount Logan Management LLC and Ability Insurance Company, Mount Logan manages and invests across private and public credit markets in North America and operates an insurance platform that provides long-duration liabilities to support its credit investment strategies. This integrated platform is designed to provide stable earnings, downside protection, and a low risk of principal impairment through the credit cycle.

As of June 30, 2026, Mount Logan Capital had over $2.0 billion in assets under management.

Estimates and Assumptions

This press release includes unaudited financial and business projections. These projections, and their underlying assumptions, are inherently unpredictable and undue reliance should not be placed thereon.
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These estimates reflect internal financial models that Mount Logan uses in connection with its strategic planning and are based on numerous variables and assumptions made by Mount Logan’s management with respect to industry performance, general business, economic, regulatory and financial conditions and other future events, as well as matters specific to Mount Logan’s businesses, all of which are difficult or impossible to predict accurately and many of which are beyond the control of Mount Logan’s management. As a result, these estimates constitute forward-looking statements and are subject to many risks and uncertainties that could cause actual results to differ materially from these projections. Please carefully consider “Cautionary Statement Regarding Forward-Looking Statements” below. There can be no assurance that these estimates will be realized or that actual results will not be significantly different than projected.

The inclusion of these estimates in this press release should not be regarded as an indication that Mount Logan or any of its affiliates, advisors, officers, directors or representatives considered or considers such estimates to be necessarily predictive of actual future events, and these estimates should not be relied upon as such. The inclusion of these estimates herein should not be deemed an admission or representation by Mount Logan that its management views these estimates as material information.

Certain of the estimates and projections set forth herein may be considered non-GAAP financial measures, including FRE. There are limitations inherent in non-GAAP financial measures, because they exclude charges and credits that are required to be included by generally accepted accounting principles in the United States (“GAAP”). Non-GAAP measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-GAAP financial measures used by Mount Logan may not be comparable with similarly titled amounts used by other companies. No reconciliation of these projected non-GAAP measures was created or used in connection with preparing the estimates included herein. Reconciliations of historical non-GAAP measures to the most directly comparable GAAP measures are provided elsewhere herein.

Cautionary Statement Regarding Forward-Looking Statements

This press release, and oral statements made from time to time by representatives of Mount Logan may contain statements of a forward-looking nature relating to future events within the meaning of applicable U.S. and Canadian securities laws. Forward-looking statements may be identified by words such as “anticipates,” “believes,” “could,” “continue,” “estimate,” “expects,” “intends,” “will,” “should,” “may,” “plan,” “predict,” “project,” “would,” “forecasts,” “seeks,” “future,” “proposes,” “target,” “goal,” “objective,” “outlook” and variations of these words or similar expressions (or the negative versions of such words or expressions). Forward-looking statements are not statements of historical fact and reflect Mount Logan’s current views about future events. Such forward-looking statements include, without limitation, statements about the anticipated growth, profitability and scalability of the Company’s business; the Company’s strategic objectives, model, approach and future activities; planned capital raising and liquidity activities and the expected outcome of such activities; the expected benefits of Ability's AM Best rating; the expected timing and benefits of the transaction with YS AIF; the expected increase in FRE and accretive nature of the transaction with YS AIF; future financial and operating results; Mount Logan’s plans, objectives, expectations and intentions regarding our business strategy and plans; and other statements that are not historical facts.

These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the risk that Ability may not maintain its AM Best ratings or that such ratings may not result in the anticipated business benefits; the inability to complete and recognize the anticipated benefits of the transaction with YS AIF on the
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anticipated timeline or at all; purchase price adjustments, unexpected costs related to the transaction with YS AIF; the risk of litigation related to the Business Combination; variability in revenues, earnings, and cash flows and the resulting impact on quarterly earnings trends and stock price volatility; the intensity of competition in asset management and insurance markets and constraints on the ability to execute growth strategies and maintain or increase market share or margins; reliance on technology and information systems, including third party systems and systems provided by BC Partners Advisors L.P. (“BCPA”), and risks related to cybersecurity, data integrity, and operational resilience; dependence on management’s assumptions, estimates, models, and judgment, and the risk that actual outcomes diverge materially from those assumptions; illiquidity of certain assets under management and insurance investments, and the impact of limited liquidity on valuation, portfolio management, and capital allocation; dependence on access to financing markets and the availability, cost, and terms of capital and liquidity; risks associated with the use of hedging and other risk management instruments, including costs, basis risk, counterparty exposure, and potential ineffectiveness; adverse political, market, and economic conditions and their effects on investment performance, funding costs, client activity, and policyholder behavior; dependence on BCPA and key BCPA personnel; actual and potential conflicts of interest arising from the relationship with BCPA; concentration risk associated with managing a limited number of funds and investments; complexities and subjectivity in valuing illiquid assets, including model risk and sensitivity to assumptions; the heavily regulated nature of the insurance business; and the increased expenses and compliance requirements associated with being a U.S. public company. No assurances can be given that the forward-looking statements contained in this press release will occur as projected, and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, both known and unknown, that could cause actual results to differ materially from those projected. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Readers should carefully review the statements set forth in the reports, which Mount Logan has filed or will file from time to time with the SEC or on SEDAR+ and any risk factors contained in such reports, including the section titled “Risk Factors” in Mount Logan’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 19, 2026. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements.

Mount Logan does not undertake any obligation, and expressly disclaims any obligation, to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Any discussion of past performance is not an indication of future results. Investing in financial markets involves a substantial degree of risk. Investors must be able to withstand a total loss of their investment. The information herein is believed to be reliable and has been obtained from sources believed to be reliable, but no representation or warranty is made, expressed or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of the information and opinions. The information contained on the website of Mount Logan is not incorporated by reference into this press release. Mount Logan is not responsible for the contents of third-party websites.


Contacts:
Mount Logan Capital Inc.
650 Madison Ave, Floor 3
New York City, NY 10022
mlc.ir@mountlogan.com

Andrew Berger
SM Berger & Company
andrew@smberger.com
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MOUNT LOGAN CAPITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands, except per share data)June 30, 2026December 31, 2025
ASSETS
Asset Management
Cash and cash equivalents$4,774 $14,999 
Investments (including related party amounts of $23,929 and $25,423 at June 30, 2026 and December 31, 2025, respectively)
24,489 29,298 
Intangible assets9,845 10,961 
Other assets (including related party amounts of $5,379 and $5,245 at June 30, 2026 and December 31, 2025, respectively)
12,380 11,165 
51,488 66,423 
Insurance Solutions
Cash and cash equivalents59,863 88,723 
Restricted cash11,640 9,973 
Investments (including related party amounts of $18,192 and $20,867 at June 30, 2026 and December 31, 2025, respectively)
953,083 956,808 
Derivatives— 481 
Assets of consolidated variable interest entities
Cash and cash equivalents16,029 30,030 
Investments130,722 120,680 
Other assets865 955 
Reinsurance recoverable271,121 272,918 
Intangible assets2,444 2,444 
Deferred acquisition costs5,468 6,791 
Goodwill30,193 30,193 
Other assets15,983 14,299 
1,497,411 1,534,295 
Total assets$1,548,899 $1,600,718 
LIABILITIES
Asset Management
Due to related parties$13,532 $11,844 
Debt obligations98,059 76,250 
Accrued expenses and other liabilities3,879 9,515 
115,470 97,609 
Insurance Solutions
Future policy benefits756,299 781,881 
Interest sensitive contract liabilities357,062 363,981 
Funds held under reinsurance contracts232,926 237,143 
Debt obligations12,000 17,250 
Derivatives3,477 1,388 
Accrued expenses and other liabilities10,904 10,510 
1,372,668 1,412,153 
Total liabilities$1,488,138 $1,509,762 
Commitments and Contingencies
EQUITY
Common shares, $0.001 par value, 150,000,000 shares authorized, 11,188,768 and 12,786,770 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
11 13 
Warrants1,426 1,426 
Additional paid-in-capital161,713 177,099 
Retained earnings (accumulated deficit)(131,562)(120,746)
Accumulated other comprehensive income (loss)29,173 33,164 
Total equity60,761 90,956 
Total liabilities and equity$1,548,899 $1,600,718 



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MOUNT LOGAN CAPITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended June 30,Six months ended June 30,
(in thousands, except per share data)2026202520262025
REVENUES
Asset Management
Management fees$1,691 $2,809 $3,330 $6,049 
Incentive fees419 478 813 777 
Advisory and transaction fees, net— — 66 — 
Equity investment earning153 42 515 324 
2,263 3,329 4,724 7,150 
Insurance Solutions
Net premiums(4,474)(4,238)(8,718)(8,251)
Product charges168 722 286 1,582 
Net investment income15,269 16,678 31,945 31,629 
Net realized and change in unrealized gains (losses) from investment activities484 3,838 (4,530)5,310 
Net revenues of consolidated variable interest entities1,997 3,549 1,864 7,182 
Net investment income (loss) on funds withheld(6,935)(6,826)(6,321)(12,576)
Other income(25)78 144 154 
6,484 13,801 14,670 25,030 
Total revenues8,747 17,130 19,394 32,180 
EXPENSES
Asset Management
Administration and servicing fees3,305 1,812 6,944 3,049 
Transaction costs(48)2,753 34 7,298 
Compensation and benefits215 1,836 426 4,216 
Amortization and impairment of intangible assets674 1,889 1,118 2,799 
Interest and other credit facility expenses2,172 1,960 4,177 3,906 
General, administrative and other1,865 1,258 4,873 2,981 
8,183 11,508 17,572 24,249 
Insurance Solutions
Net policy benefit and claims (remeasurement gain on policy liabilities of $6,064 and $10,523 and $2,945 and $3,025 for the three and six months ended June 30, 2026 and 2025, respectively)
(4,281)(1,064)(6,916)729 
Interest sensitive contract benefits4,179 3,997 8,468 7,815 
Amortization of deferred acquisition costs703 905 1,411 1,460 
Compensation and benefits— 223 — 467 
Interest expense318 407 718 735 
General, administrative and other (including related party amounts of $1,680 and $3,352 and $1,753 and $3,485 for the three and six months ended June 30, 2026 and 2025, respectively)
3,633 3,270 7,894 6,956 
4,552 7,738 11,575 18,162 
Total expenses12,735 19,246 29,147 42,411 
Investment and other income (loss) - Asset Management
Net realized and change in unrealized gains (losses) from investment activities (967)867 (1,318)1,708 
Dividend income5 29 65 67 
Interest income301 271 685 539 
Other income (loss), net472 6 646 305 
Loss on extinguishment of debt— — (472)— 
Total investment and other income (loss)(189)1,173 (394)2,619 
Income (loss) before taxes(4,177)(943)(10,147)(7,612)
Income tax (expense) benefit — Asset Management— 9 — (27)
Net income (loss)$(4,177)$(934)$(10,147)$(7,639)
Earnings per share
Net income (loss) attributable to common shareholders - Basic and Diluted$(0.37)$(0.14)$(0.88)$(1.14)
Weighted average shares outstanding – Basic and Diluted11,188,768 6,789,843 11,490,663 6,683,097 

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MOUNT LOGAN CAPITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Three months ended June 30,Six months ended June 30,
(in thousands, except per share data)2026202520262025
Net income (loss)$(4,177)$(934)$(10,147)$(7,639)
Other comprehensive income (loss), before tax:
Unrealized investment gains (losses) on available-for-sale securities2,411 (917)(1,813)1,687 
Unrealized gains (losses) on hedging instruments(1,685)1,407 (2,570)4,735 
Remeasurement gains (losses) on future policy benefits and reinsurance recoverable related to discount rate(2,941)(2,849)392 (7,992)
Other comprehensive income (loss), before tax(2,215)(2,359)(3,991)(1,570)
Income tax expense (benefit) related to other comprehensive income (loss)— — — — 
Other comprehensive income (loss)(2,215)(2,359)(3,991)(1,570)
Comprehensive income (loss)$(6,392)$(3,293)$(14,138)$(9,209)

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