Completed a strategic growth investment in the fourth quarter into
Entered an agreement during the first quarter 2026 to manage
Declared quarterly distribution of
Management Commentary
Ted Goldthorpe , Chief Executive Officer and Chairman of Mount Logan stated, “2025 was a transformational year for Mount Logan following the completion of our business combination with 180 Degree Capital. The transaction strengthened our capital base and positioned the Company to invest in the continued development of our platform. For the full year, our asset management business generated a stable base of fee-related earnings, which we expect to strengthen further through recently announced initiatives, including the Yieldstreet asset acquisition by Mount Logan's managed fund SOFIX, and continued growth in our managed strategies. Within our insurance platform, spread-related earnings were breakeven for the year as we continued to invest in the team and capabilities needed to support future growth, while rotating out of legacy, underperforming insurance assets. Subsequent to year-end, we have taken several steps to enhance shareholder value and increase financial flexibility, including completion of a$15 million tender offer, the issuance of$40 million senior notes, and executing strategic AUM growth initiatives, both organically and inorganically. We believe Mount Logan is well positioned to remain opportunistic in deploying capital across diverse credit strategies as we seek to grow recurring earnings over time."
Full Year Milestones3
- Total revenue for the Asset Management segment, including investment and other income, was
$21.5 million for the year, an increase of$6.5 million , or 44% compared to 2024. The increase was driven primarily by the$4.5 million gain recognized on the acquisition of 180 Degree Capital, as well as a$1.4 million unrealized gain on the minority stake position Mount Logan has inRunway Growth Capital LLC . Asset Management revenues exclude$6.0 million of intercompany management fees earned from managing the assets ofAbility Insurance Company ("Ability"), which increased$0.4 million , or approximately 7%, from$5.6 million in 2024. - Fee-Related Earnings (“FRE”) for the Asset Management segment were
$8.5 million for the year, down$0.6 million compared to$9.1 million in 2024. This decrease primarily reflects voluntary fee waivers of$0.5 million . Additionally, Mount Logan underwent a shift in key fee streams as certain funds continued their wind down during 2025, including the Ovation funds and Mount Logan’s managed CLOs. Following the merger ofLogan Ridge intoPortman Ridge , Mount Logan introduced a new recurring revenue stream from a profit-sharing agreement with the majority owner ofSierra Crest Investment Management 4, which management anticipates will be fully reflected in 2026 financial performance. For the full-year, Mount Logan earned$0.8 million of transaction and advisory fees, reflecting a new organic initiative within the asset management segment. - Total net investment income for the
Insurance Solutions segment including net investment income of consolidated variable interest entities ("VIEs") was$79.0 million for the year, a decrease of$13.8 million , or 15%, compared to 2024. The decrease was primarily driven by a lower interest rate environment, higher management and incentive fees associated with funds withheld assets under modified coinsurance (“Modco”) arrangement withVista Life and Casualty Reinsurance Company ("Vista"), and the write off of accrued interest on certain defaulted mortgages amounting to$2.3 million . Excluding the funds withheld assets under reinsurance contracts andModco arrangements, theInsurance Solutions segment’s net investment income was$55.0 million , a decrease of$4.3 million , or 7%, compared to 2024. - Achieved 6.9%5 yield on the insurance investment portfolio for 2025. Excluding the funds withheld under reinsurance contracts and modified coinsurance, the yield was 7.7%.
- Spread-Related Earnings (“SRE”)6 for the
Insurance Solutions segment was$0.0 million in 2025, compared to$13.7 million in 2024. The decline year-over-year was primarily attributable to the decline in net investment income for theInsurance Solutions segment including VIEs, while general, administrative and other expenses were lower due to lower MYGA-related expenses and cost reductions following continued expense efficiency initiatives, which remain ongoing. - Ability’s total assets managed by Mount Logan excluding the funds withheld assets under reinsurance contracts and
Modco , were$660.7 million as ofDecember 31, 2025 , an increase of$40.6 million from the fourth quarter of 2024. As ofDecember 31, 2025 , theInsurance Solutions segment included approximately$1.1 billion in total investment assets, an increase of$36.0 million from the comparative prior year period. During the first quarter of 2025, Mount Logan began managing a portion of Ability’sModco assets with Vista totaling$71.9 million as ofDecember 31, 2025 . - Book value of the insurance segment as of
December 31, 2025 was$122.1 million , a decrease of$7.7 million , compared to$129.8 million as ofDecember 31, 2024 . As of year-end, Mount Logan made a significant investment into Ability to support the flywheel effect of the business.
Fourth Quarter 2025 Highlights
- Total revenue for the Asset Management segment including investment and other income was
$2.6 million , a decrease of$1.2 million , compared to$3.8 million for the fourth quarter of 2024. The decrease was primarily driven by the termination of theLogan Ridge investment management agreement and wind-down of the Ovation funds. While the Company anticipated the decrease in management fees from these events, Mount Logan entered into new agreements and transactions resulting in new profit-sharing revenue and advisory and transaction fees earned this quarter compared to the comparative period. The new profit-sharing revenue is expected to scale with the growth of BCIC. - FRE for the Asset Management segment were
$1.5 million for the quarter, down$0.7 million compared to$2.2 million in fourth quarter 2024. - Total net investment income for the
Insurance Solutions segment including net investment income of consolidated VIEs was$18.5 million , a decrease of$5.0 million , or 21%, compared to fourth quarter of 2024. The decrease was primarily driven by a lower interest rate environment and the write off of accrued interest on certain defaulted mortgages. Excluding the funds withheld assets under reinsurance contracts andModco arrangements, theInsurance Solutions segment’s net investment income was$13.5 million , a decrease of$1.5 million , or 10%, compared to fourth quarter of 2024. - SRE for the
Insurance Solutions segment was$(1.1) million in fourth quarter 2025, compared to$4.2 million in 2024.
Managed-fund Transaction
- Mount Logan–managed
Opportunistic Credit Interval Fund (“SOFIX”) signed a definitive agreement to acquire $100+ million of assets fromYieldstreet Alternative Income Fund Inc. (“YS AIF”) during the first quarter of 2026. - Mount Logan currently estimates, on a full-year basis, the transaction will increase FRE by
$2.8 million 2 or more, representing a more than 30% increase inMount Logan's 2025 trailing twelve-month FRE as ofDecember 31, 2025 . - Mount Logan’s total cost inclusive of its definitive transition services agreement with YS AIF’s advisor is expected to make the transaction immediately accretive to Mount Logan.
- YS AIF and SOFIX investors gain access to a larger investment vehicle with greater scale, economic efficiency and increased portfolio diversification.
- Transaction expected to close in late Q2 or Q3 2026, subject to regulatory and YS AIF shareholder approvals.
Other Subsequent Events
- Declared a stockholder quarterly distribution in the amount of
$0.03 per share of common stock for the quarter endedDecember 31, 2025 , payable onApril 15, 2026 to stockholders of record at the close of business onMarch 30, 2026 . This cash dividend marks the second consecutive quarter of the Company issuing a$0.03 distribution to its stockholders following the closing of the Business Combination. - Closed
$40.0 million in aggregate principal amount of senior unsecured notes offering where funds were used to partially repay outstanding indebtedness on the Company's credit facility, with remaining funds available for general corporate purposes. - Closed
$15.0 million tender offer to purchase approximately 12% of the Company's common stock issued and outstanding as ofFebruary 2, 2026 . - Approved a
$10.0 million share repurchase program throughDecember 31, 2027 , where repurchases may be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions, or by other means in accordance with applicable securities laws and subject to market conditions and other factors.
Selected Financial Highlights
- Total capital of the Company was
$185.3 million atDecember 31, 2025 , a decrease of$11.9 million as compared toDecember 31, 2024 . Total capital consists of debt obligations and total shareholders’ equity. - Consolidated net loss before taxes was
$58.5 million for 2025, compared with a loss of$9.8 million for 2024. The year-over-year change primarily reflects one-time costs related to the Business Combination with 180 Degree Capital, the impairment of theLogan Ridge investment management agreement intangible asset, certain legal and consulting fees associated with the previously announced investigation of misconduct by a former employee of ML Management, as well as reimbursements to AIF and its portfolio company in relation to such misconduct, and the goodwill impairment of the legacy LTC product withinInsurance Solutions . - Basic earnings (loss) per share (“EPS”) was (
$7.08 ) for 2025, an increase in loss per share of$5.38 from ($1.70 ) for 2024.
Conference Call Details
Mount Logan will hold a conference call to discuss its quarterly results on
https://ir.mountlogan.com/ for 12 months.
Results of Operations by Segment
| Years Ended | |||||||||||||||
| 2025 | 2024 | Change ($) | Change (%) | ||||||||||||
| ($ in thousands) | |||||||||||||||
| REVENUES | |||||||||||||||
| Asset Management | |||||||||||||||
| Management fees | $ | 9,532 | $ | 11,131 | $ | (1,599 | ) | (14)% | |||||||
| Incentive fees | 1,613 | 3,198 | (1,585 | ) | (50)% | ||||||||||
| Advisory and transaction fees, net | 798 | — | 798 | NM | |||||||||||
| Equity investment earning | 1,023 | 680 | 343 | 50% | |||||||||||
| 12,966 | 15,009 | (2,043 | ) | (14)% | |||||||||||
| Net Premiums | (17,200 | ) | (15,479 | ) | (1,721 | ) | 11% | ||||||||
| Product charges | 1,877 | 266 | 1,611 | 606% | |||||||||||
| Net investment income | 63,423 | 74,638 | (11,215 | ) | (15)% | ||||||||||
| Net gains (losses) from investment activities | 6,217 | (8,211 | ) | 14,428 | (176)% | ||||||||||
| Net revenues of consolidated variable interest entities | 13,166 | 15,082 | (1,916 | ) | (13)% | ||||||||||
| Net investment income (loss) on funds withheld | (27,192 | ) | (32,056 | ) | 4,864 | (15)% | |||||||||
| Other income | 309 | 541 | (232 | ) | (43)% | ||||||||||
| 40,600 | 34,781 | 5,819 | 17% | ||||||||||||
| Total revenues | 53,566 | 49,790 | 3,776 | 8% | |||||||||||
| EXPENSES | |||||||||||||||
| Asset Management | |||||||||||||||
| Administration and servicing fees | 7,802 | 5,895 | 1,907 | 32% | |||||||||||
| Transaction costs | 9,501 | 2,174 | 7,327 | 337% | |||||||||||
| Compensation and benefits | 8,392 | 8,412 | (20 | ) | —% | ||||||||||
| Amortization and impairment of intangible assets | 14,978 | 3,582 | 11,396 | 318% | |||||||||||
| Interest and other credit facility expenses | 7,810 | 7,001 | 809 | 12% | |||||||||||
| General, administrative and other | 13,138 | 6,480 | 6,658 | 103% | |||||||||||
| 61,621 | 33,544 | 28,077 | 84% | ||||||||||||
| Net policy benefit and claims (remeasurement gain on policy liabilities of | (2,222 | ) | (10,091 | ) | 7,869 | (78)% | |||||||||
| Interest sensitive contract benefits | 16,076 | 14,972 | 1,104 | 7% | |||||||||||
| Amortization of deferred acquisition costs | 3,126 | 2,175 | 951 | 44% | |||||||||||
| Compensation and benefits | 543 | 1,367 | (824 | ) | (60)% | ||||||||||
| Interest expense | 1,541 | 1,313 | 228 | 17% | |||||||||||
| General, administrative and other (including related party amounts of | 14,394 | 16,276 | (1,882 | ) | (12)% | ||||||||||
| 25,504 | — | 25,504 | NM | ||||||||||||
| 58,962 | 26,012 | 32,950 | 127% | ||||||||||||
| Total expenses | 120,583 | 59,556 | 61,027 | 102% | |||||||||||
| Investment and other income (Loss) - Asset Management | |||||||||||||||
| Net gains (losses) from investment activities | 2,021 | (1,531 | ) | 3,552 | (232)% | ||||||||||
| Dividend income | 98 | 356 | (258 | ) | (72)% | ||||||||||
| Interest income | 1,278 | 1,091 | 187 | 17% | |||||||||||
| Other income (loss), net | 702 | 69 | 633 | 917% | |||||||||||
| Gain on acquisition | 4,457 | — | 4,457 | NM | |||||||||||
| Total investment and other income (loss) | 8,556 | (15 | ) | 8,571 | NM | ||||||||||
| Income (loss) before taxes | (58,461 | ) | (9,781 | ) | (48,680 | ) | 498% | ||||||||
| Income tax (expense) benefit — Asset Management | (2,386 | ) | (606 | ) | (1,780 | ) | 294% | ||||||||
| Net income (loss) | $ | (60,847 | ) | $ | (10,387 | ) | $ | (50,460 | ) | 486% | |||||
Note: “NM” denotes not meaningful.
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
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)
| Years Ended | |||||||||||||||
| 2025 | 2024 | Change ($) | Change (%) | ||||||||||||
| Asset Management | |||||||||||||||
| Management fees | $ | 15,575 | $ | 16,758 | $ | (1,183 | ) | (7)% | |||||||
| Incentive fees | 1,613 | 3,198 | (1,585 | ) | (50)% | ||||||||||
| Advisory and transaction fees, net | 798 | — | 798 | NM | |||||||||||
| Equity investment earnings | 1,023 | 680 | 343 | 50% | |||||||||||
| Interest income1 | 1,087 | 1,091 | (4 | ) | —% | ||||||||||
| Other fee-related income | 367 | — | 367 | NM | |||||||||||
| Fee-related compensation | (4,962 | ) | (5,665 | ) | 703 | (12)% | |||||||||
| Other operating expenses: | |||||||||||||||
| Administration and servicing fees | (4,313 | ) | (4,290 | ) | (23 | ) | 1% | ||||||||
| General, administrative and other | (2,704 | ) | (2,693 | ) | (11 | ) | —% | ||||||||
| Fee related earnings | $ | 8,484 | $ | 9,079 | $ | (595 | ) | (7)% | |||||||
Note: “NM” denotes not meaningful.
(1) Represents interest income on a loan asset related to a fee generating vehicle
Insurance
Spread Related Earnings
Mount Logan uses SRE to assess the performance of the
Cost of funds includes liability costs associated with the crediting cost on MYGA liabilities as well as other liability costs. Other liability costs include DAC amortization, the cost of liabilities associated with LTC, net of reinsurance, which includes change in reserves, premiums, actual claim experience including related expenses and certain product charges related to MYGA.
The Company reconciles SRE to net income (loss) before tax from its insurance segment activities, as follows:
($ in Thousands)
| Years Ended | |||||||||||||||
| 2025 | 2024 | Change ($) | Change (%) | ||||||||||||
| Net investment income and realized gain (loss), net | $ | 47,147 | $ | 53,477 | $ | (6,330 | ) | (12)% | |||||||
| Cost of funds | (32,303 | ) | (22,269 | ) | (10,034 | ) | 45% | ||||||||
| Compensation and benefits | (543 | ) | (1,367 | ) | 824 | (60)% | |||||||||
| Interest expense | (1,541 | ) | (1,313 | ) | (228 | ) | 17% | ||||||||
| General, administrative and other | (12,764 | ) | (14,788 | ) | 2,024 | (14)% | |||||||||
| Spread related earnings | $ | (4 | ) | $ | 13,740 | $ | (13,744 | ) | (100)% | ||||||
SRE was
Net Investment Spread
The following presents net investment spread for the insurance segment:
| Years Ended | |||||||
| 2025 | 2024 | Change | |||||
| Net investment income and realized gain or (loss), net | 6.13% | 7.43% | (130)bps | ||||
| Cost of funds1 | (5.48)% | (5.35)% | (13)bps | ||||
| Net Investment spread | 0.65% | 2.08% | (143)bps | ||||
(1) Excludes changes in future policy benefits liabilities of LTC line of business, to calculate net investment spread, which result from changes in actuarial assumptions and future cash flow projections.
Net investment spread was 0.65% in 2025, a decrease of 143 basis points compared to 2.08% in 2024, primarily driven by lower net investment income and realized gain or (loss) and higher cost of funds in 2025 compared to 2024. Net investment income and realized gain or (loss) percent represents the percent of net investment income and realized gain (loss) over average net invested assets. Net investment income and realized gain (loss) was 6.13% in 2025, a decrease of 130 basis points compared to 7.43% in 2024, primarily driven by higher average net invested assets (including cash on hand), lower treasury yields, and higher realized losses. Cost of funds percent represents the percent of cost of funds over average net invested assets. Cost of funds were higher in 2025 compared to 2024 primarily due to the unfavorable in-force update and claims experience in the LTC business, increased DAC amortization due to the assumption of the NSG MYGA block and increased surrenders of existing MYGA policies.
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
($ in Thousands)
| Years Ended | ||||||||
| 2025 | 2024 | |||||||
| Net income (loss) | $ | (60,847 | ) | $ | (10,387 | ) | ||
| Income tax (expense) benefit — Asset Management | (2,386 | ) | (606 | ) | ||||
| Income (loss) before taxes | $ | (58,461 | ) | $ | (9,781 | ) | ||
| Asset Management Adjustments: | ||||||||
| Intersegment management fee eliminations | 6,043 | 5,627 | ||||||
| Administration and servicing fees 1 | 2,236 | 1,605 | ||||||
| Transaction costs | 9,501 | 2,174 | ||||||
| Compensation and benefits 1 | 1,885 | 2,173 | ||||||
| Equity-based compensation | 1,476 | 363 | ||||||
| Amortization and impairment of intangible assets | 14,978 | 3,582 | ||||||
| Interest and other credit facility expenses | 7,810 | 7,001 | ||||||
| General, administrative and other 1 | 10,434 | 3,787 | ||||||
| Net gains (losses) from investment activities | (2,021 | ) | 1,531 | |||||
| Dividend income | (98 | ) | (356 | ) | ||||
| Interest income - bank interest | (191 | ) | — | |||||
| Other income (loss), net | (335 | ) | (69 | ) | ||||
| Gain on acquisition | (4,457 | ) | — | |||||
| Insurance Solutions Adjustments: | ||||||||
| Equity-based compensation | 1,322 | 211 | ||||||
| Net unrealized gains (losses) from investment activities | (2,424 | ) | 9,651 | |||||
| Other income | (309 | ) | (541 | ) | ||||
| Intersegment management fee eliminations | (6,043 | ) | (5,627 | ) | ||||
| General, administrative and other 2 | 1,630 | 1,488 | ||||||
| Impairment loss - | 25,504 | — | ||||||
| Segment Income | $ | 8,480 | $ | 22,819 | ||||
(1) Represents corporate overhead allocated to each segment.
(2) Represents costs incurred by the insurance segment for purposes of
Liquidity and Capital Resources
As of
As of
($ in Thousands)
| As at | 2025 | 2024 | ||||
| Cash and cash equivalents1 | $ | 118,753 | $ | 77,055 | ||
| Restricted cash | 9,973 | 15,716 | ||||
| Investments | 639,221 | 637,048 | ||||
| Receivable for investments sold | — | 17,045 | ||||
| Accrued interest and dividend receivable1 | 12,596 | 18,580 | ||||
| Total liquid assets | $ | 780,543 | $ | 765,444 | ||
(1) Cash and cash equivalents and accrued interest & dividend receivable includes cash and cash equivalent and accrued interest of consolidated VIEs, respectively.
Interest Rate Sensitivity
The Company owns debt assets that are exposed to interest rate sensitivity.
The following table summarizes the potential impact on net income of hypothetical base rate changes in interest rates within the
| As at | 2025 | 2024 | ||||||
| 50 basis point increase1 | $ | 653 | $ | 1,911 | ||||
| 50 basis point decrease1 | $ | (653 | ) | $ | (1,911 | ) | ||
(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.
About
Through its subsidiaries,
As of
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.
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
Cautionary Statement Regarding Forward-Looking Statements
This press release, and oral statements made from time to time by representatives of Mount Logan or SOFIX may contain statements of a forward-looking nature relating to future events within the meaning of applicable
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 inability to complete and recognize the anticipated benefits of the transaction with YS AIF on the 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 and systems provided by
Each of Mount Logan and SOFIX do 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 or SOFIX is not incorporated by reference into this press release. Neither Mount Logan nor SOFIX is responsible for the contents of third-party websites.
No Offer or Solicitation
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 intended to be and does not constitute an offer to sell or the solicitation of an offer to purchase any securities in the MLCI, SOFIX, YS AIF or in any fund or other investment vehicle in any jurisdiction pursuant to the proposed transactions or otherwise.
Additional Information and Where to Find It
Additional information regarding the Asset Acquisition transaction will be presented in a proxy statement/prospectus that will be provided to YS AIF shareholders at a meeting of YS AIF shareholders.
The proxy statement/prospectus has yet to be filed with the
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION.
Participants in the Solicitation
SOFIX, MLCI, MLM, and their respective directors and officers may be deemed to be participants in the solicitation of proxies from the shareholders of YS AIF in connection with the proposed asset acquisition. Information regarding the persons who may be deemed participants in such solicitation will be set forth in the proxy statement/prospectus relating to the proposed asset acquisition when it is filed with the
Contacts:
mlc.ir@mountlogan.com
andrew@smberger.com
________________________________
1 FRE is a non-GAAP financial measure that the Company believes provides valuable perspectives on its business results. With respect to FRE for completed periods, refer to tables elsewhere in this press release for a reconciliation to the comparable GAAP measure.
2 Estimated FRE contribution from acquired assets based on current management and incentive fee structure of SOFIX with
3 As discussed in Note 1 and Note 3 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended
4
5 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 year and prior year.
6 SRE is a non-GAAP financial measure that the Company believes provides valuable perspectives on its business results. With respect to SRE for completed periods, refer to tables elsewhere in this press release for a reconciliation to the comparable GAAP measure.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||||
| (in thousands, except per share data) | ||||||||
| ASSETS | ||||||||
| Asset Management | ||||||||
| Cash and cash equivalents | $ | 14,999 | $ | 8,933 | ||||
| Investments (including related party amounts of | 29,298 | 21,370 | ||||||
| Intangible assets | 10,961 | 25,940 | ||||||
| Other assets (including related party amounts of | 11,165 | 9,179 | ||||||
| 66,423 | 65,422 | |||||||
| Cash and cash equivalents | 88,723 | 51,999 | ||||||
| Restricted cash | 9,973 | 15,716 | ||||||
| Investments (including related party amounts of | 956,808 | 915,556 | ||||||
| Derivatives | 481 | — | ||||||
| Assets of consolidated variable interest entities | ||||||||
| Cash and cash equivalents | 30,030 | 25,056 | ||||||
| Investments | 120,680 | 125,898 | ||||||
| Other assets | 955 | 1,048 | ||||||
| Reinsurance recoverable | 272,918 | 259,454 | ||||||
| Intangible assets | 2,444 | 2,444 | ||||||
| Deferred acquisition costs | 6,791 | 6,524 | ||||||
| 30,193 | 55,697 | |||||||
| Other assets | 14,299 | 37,135 | ||||||
| 1,534,295 | 1,496,527 | |||||||
| Total assets | $ | 1,600,718 | $ | 1,561,949 | ||||
| LIABILITIES | ||||||||
| Asset Management | ||||||||
| Due to related parties | $ | 11,844 | $ | 10,470 | ||||
| Debt obligations | 76,250 | 74,963 | ||||||
| Accrued expenses and other liabilities | 9,515 | 5,669 | ||||||
| 97,609 | 91,102 | |||||||
| Future policy benefits | 781,881 | 769,533 | ||||||
| Interest sensitive contract liabilities | 363,981 | 334,876 | ||||||
| Funds held under reinsurance contracts | 237,143 | 239,918 | ||||||
| Debt obligations | 17,250 | 14,250 | ||||||
| Derivatives | 1,388 | 5,192 | ||||||
| Accrued expenses and other liabilities | 10,510 | 2,995 | ||||||
| 1,412,153 | 1,366,764 | |||||||
| Total liabilities | 1,509,762 | 1,457,866 | ||||||
| Commitments and Contingencies | ||||||||
| EQUITY | ||||||||
| Common shares, | 13 | 6 | ||||||
| Warrants | 1,426 | 1,426 | ||||||
| Additional paid-in-capital | 177,099 | 123,889 | ||||||
| Retained earnings (accumulated deficit) | (120,746 | ) | (58,279 | ) | ||||
| Accumulated other comprehensive income (loss) | 33,164 | 37,041 | ||||||
| Total equity | 90,956 | 104,083 | ||||||
| Total liabilities and equity | $ | 1,600,718 | $ | 1,561,949 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| Years Ended | ||||||||
| (in thousands, except per share data) | 2025 | 2024 | ||||||
| REVENUES | ||||||||
| Asset Management | ||||||||
| Management fees | $ | 9,532 | $ | 11,131 | ||||
| Incentive fees | 1,613 | 3,198 | ||||||
| Advisory and transaction fees, net | 798 | — | ||||||
| Equity investment earning | 1,023 | 680 | ||||||
| 12,966 | 15,009 | |||||||
| Net premiums | (17,200 | ) | (15,479 | ) | ||||
| Product charges | 1,877 | 266 | ||||||
| Net investment income | 63,423 | 74,638 | ||||||
| Net gains (losses) from investment activities | 6,217 | (8,211 | ) | |||||
| Net revenues of consolidated variable interest entities | 13,166 | 15,082 | ||||||
| Net investment income (loss) on funds withheld | (27,192 | ) | (32,056 | ) | ||||
| Other income | 309 | 541 | ||||||
| 40,600 | 34,781 | |||||||
| Total revenues | 53,566 | 49,790 | ||||||
| EXPENSES | ||||||||
| Asset Management | ||||||||
| Administration and servicing fees | 7,802 | 5,895 | ||||||
| Transaction costs | 9,501 | 2,174 | ||||||
| Compensation and benefits | 8,392 | 8,412 | ||||||
| Amortization and impairment of intangible assets | 14,978 | 3,582 | ||||||
| Interest and other credit facility expenses | 7,810 | 7,001 | ||||||
| General, administrative and other | 13,138 | 6,480 | ||||||
| 61,621 | 33,544 | |||||||
| Net policy benefit and claims | (2,222 | ) | (10,091 | ) | ||||
| Interest sensitive contract benefits | 16,076 | 14,972 | ||||||
| Amortization of deferred acquisition costs | 3,126 | 2,175 | ||||||
| Compensation and benefits | 543 | 1,367 | ||||||
| Interest expense | 1,541 | 1,313 | ||||||
| General, administrative and other | 14,394 | 16,276 | ||||||
| 25,504 | — | |||||||
| 58,962 | 26,012 | |||||||
| Total expenses | 120,583 | 59,556 | ||||||
| Investment and other income (loss) - Asset Management | ||||||||
| Net gains (losses) from investment activities | 2,021 | (1,531 | ) | |||||
| Dividend income | 98 | 356 | ||||||
| Interest income | 1,278 | 1,091 | ||||||
| Other income (loss), net | 702 | 69 | ||||||
| Gain on acquisition | 4,457 | — | ||||||
| Total investment and other income (loss) | 8,556 | (15 | ) | |||||
| Income (loss) before taxes | (58,461 | ) | (9,781 | ) | ||||
| Income tax (expense) benefit — Asset Management | (2,386 | ) | (606 | ) | ||||
| Net income (loss) | $ | (60,847 | ) | $ | (10,387 | ) | ||
| Earnings per share | ||||||||
| Net income (loss) attributable to common shareholders - Basic | $ | (7.08 | ) | $ | (1.70 | ) | ||
| Net income (loss) attributable to common shareholders - Diluted | (7.08 | ) | (1.70 | ) | ||||
| Weighted average shares outstanding – Basic | 8,597,454 | 6,113,203 | ||||||
| Weighted average shares outstanding – Diluted | 8,597,454 | 6,113,203 | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||
| Years Ended | ||||||||
| (in thousands, except per share data) | 2025 | 2024 | ||||||
| Net income (loss) | $ | (60,847 | ) | $ | (10,387 | ) | ||
| Other comprehensive income (loss), before tax: | ||||||||
| Unrealized investment gains (losses) on available-for-sale securities | 5,960 | 7,555 | ||||||
| Unrealized gains (losses) on hedging instruments | 4,285 | (5,192 | ) | |||||
| Remeasurement gains (losses) on future policy benefits related to discount rate | (14,122 | ) | 7,592 | |||||
| Other comprehensive income (loss), before tax | (3,877 | ) | 9,955 | |||||
| Income tax expense (benefit) related to other comprehensive income (loss) | — | — | ||||||
| Other comprehensive income (loss) | (3,877 | ) | 9,955 | |||||
| Comprehensive income (loss) | $ | (64,724 | ) | $ | (432 | ) | ||
