Mount Logan Capital Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Segment Income for the quarter was $4.3 million, an increase of $2.1 million year-over-year and $1.0 million compared to the first quarter of 2026.
• Consolidated net loss before taxes was $4.2 million for the second quarter of 2026, compared to a loss of $0.9 million in the second quarter of 2025.
• Consolidated basic loss per share (EPS) was $0.37 for the second quarter of 2026, compared to $0.14 in the second quarter of 2025.
• Total revenues were $8.7 million for the quarter, a decrease of $8.4 million (49%) compared to $17.1 million in the second quarter of 2025.
• Total expenses were $12.7 million for the quarter, a decrease of $6.5 million (34%) compared to $19.2 million in the second quarter of 2025.
• Fee-Related Earnings (FRE) for the Asset Management segment was $1.4 million, down $0.9 million (39%) year-over-year from $2.2 million in the prior year quarter.
• Spread-Related Earnings (SRE) for the Insurance Solutions segment was $2.9 million, compared to ($0.1) million in the second quarter of 2025.
• For the first half of 2026, FRE was $2.6 million and SRE was $4.9 million, resulting in Segment Income of $7.5 million, a 69% increase year-over-year.
• Total capital was $171.1 million at June 30, 2026, a decrease of $14.2 million compared to December 31, 2025.
• Net investment income for the Insurance Solutions segment was $18.5 million for the quarter, a decrease of $2.0 million (10%) year-over-year.
• The yield on the insurance investment portfolio was 6.2% for the second quarter of 2026; excluding funds withheld assets, the yield was 6.6%.

Guidance and Future Outlook

• The pending acquisition of $100+ million of assets from Yieldstreet Alternative Income Fund Inc. is expected to close in the third quarter of 2026.
• The Yieldstreet transaction is estimated to increase FRE by $2.8 million or more on a full-year basis.
• Management stated the company is well-positioned to generate durable earnings growth and long-term shareholder value in the quarters ahead.

Business Segments and Product Lines

• Asset Management:
  • Total revenue was $2.3 million for the quarter, a decrease of $1.1 million (32%) year-over-year.
  • Management fees were $1.7 million, down from $2.8 million in the prior year quarter.
  • Incentive fees were $0.4 million, down from $0.5 million in the prior year quarter.
  • Equity investment earnings were $0.2 million, up from $0.04 million in the prior year quarter.
• Insurance Solutions:
  • Total net investment income including VIEs was $18.5 million for the quarter.
  • Net premiums were ($4.5) million for the quarter, compared to ($4.2) million in the prior year quarter.
  • Net policy benefits and claims were ($4.3) million for the quarter, compared to ($1.1) million in the prior year quarter.
  • The segment held approximately $1.0 billion of total investment assets as of June 30, 2026, an increase of $28.5 million from the second quarter of 2025.
• Assets Under Management (AUM):
  • Total AUM was $2.0 billion as of June 30, 2026.
  • Ability's assets excluding intangible assets and funds withheld assets were $784.5 million, a decrease of $6.7 million from the second quarter of 2025.
  • Including Modco assets, Ability's total assets managed by Mount Logan were $953.0 million, an increase of $126.0 million compared to the second quarter of 2025.

Market and Competitive Landscape

• Ability received a B+ AM Best Financial Strength Rating and a bbb- Long-Term Issuer Credit Rating after quarter-end.
• The company leverages an integrated platform of alternative asset management and insurance solutions to deliver risk-adjusted returns across market cycles.

Risks and Challenges

• Consolidated net loss widened primarily due to net realized and change in unrealized losses from investments in Insurance Solutions.
• Forward-looking statements are subject to risks including the inability to complete the Yieldstreet transaction, variability in revenues and earnings, competition in asset management and insurance markets, and reliance on technology and information systems.
• Risks include illiquidity of certain assets, dependence on financing markets, and the heavily regulated nature of the insurance business.

Management Commentary and Tone

• Ted Goldthorpe, CEO and Chairman, stated that sequential improvement in Segment Income reflects progress in increasing scale, controlling costs, and executing growth initiatives.
• Management views the AM Best rating and the pending Yieldstreet transaction as meaningful progress in unlocking the earnings potential of the integrated asset management and insurance platform.

Other Key Points

• The company declared a quarterly stockholder distribution of $0.03 per share of common stock for the quarter ended June 30, 2026, payable on August 31, 2026.
• This marks the fourth consecutive quarter of the Company issuing a $0.03 distribution following the closing of the Business Combination with 180 Degree Capital Corp.
• The Yieldstreet Alternative Income Fund transaction received requisite approvals and shareholder votes on July 31, 2026.
• The Company will host an earnings conference call and webcast on August 12, 2026, at 10:00 AM EDT.