Mount Logan Capital Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated net loss before taxes was $3.7 million for the third quarter of 2026, compared to a loss of $11.1 million in the third quarter of 2025; year-to-date loss was $13.9 million versus $18.7 million in 2025.
• Consolidated basic loss per share (EPS) was $0.33 for the third quarter of 2026, compared to $1.64 in the prior year period; year-to-date EPS was $1.21 versus $2.93 in 2025.
• Segment Income was $11.5 million for the nine months ended September 30, 2026, an increase of 21% ($2.0 million) year-over-year; third quarter Segment Income was $3.2 million.
• Fee-Related Earnings (FRE) for the nine months ended September 30, 2026, were $3.3 million; Spread-Related Earnings (SRE) were $8.2 million.
• Total revenue for the Asset Management segment was $2.0 million for the third quarter of 2026, a 27% decrease year-over-year; year-to-date revenue was $6.7 million, down 32%.
• Asset Management FRE was $0.5 million for the third quarter of 2026, down $2.2 million year-over-year; year-to-date FRE was $3.3 million, down 56%.
• Insurance Solutions SRE was $2.7 million for the third quarter of 2026, up $1.2 million (81%) year-over-year; year-to-date SRE was $8.2 million, up 288%.
• Total revenues for the Insurance Solutions segment were $10.8 million for the third quarter of 2026, up 25% year-over-year; year-to-date revenues were $25.5 million, down 24%.
• Net investment income for the Insurance Solutions segment was $20.6 million for the third quarter of 2026, a 2% decrease year-over-year; excluding funds withheld and Modco arrangements, it increased 1% to $14.2 million.
• Total expenses were $16.0 million for the third quarter of 2026, a 45% decrease year-over-year; year-to-date expenses were $45.2 million, down 37%.
• Total capital was $173.1 million at September 30, 2026, a decrease of $11.4 million from December 31, 2025.
• Total assets were $1.41 billion at September 30, 2026, down from $1.60 billion at December 31, 2025.
• Total liabilities were $1.35 billion at September 30, 2026, down from $1.51 billion at December 31, 2025.
• Total equity was $62.7 million at September 30, 2026, down from $91.0 million at December 31, 2025.

Guidance and Future Outlook:

• Management expects improving financial performance beginning in the fourth quarter of 2026 and building through 2027, driven by recent strategic initiatives.
• Two strategic transactions completed in the third quarter (SOFIX acquisition of Yieldstreet assets and ACIF merger with BC Partners) are expected to add $6.5 million of annualized FRE on a run-rate basis.
• The Proposed AFA Transaction is expected to be immediately accretive to FRE upon closing, anticipated in the first quarter of 2027, subject to shareholder and regulatory approvals.

Business Segments and Product Lines:

• Asset Management: Total revenue decreased 27% year-over-year to $2.0 million; management fees were $1.9 million (up 1%), while incentive fees dropped to zero from $0.4 million in the prior year.
• Insurance Solutions: Achieved a 7.3% yield on the insurance investment portfolio for the third quarter of 2026; excluding funds withheld and Modco, the yield was 7.8%.
• Ability Insurance Company: Received a B+ Financial Strength Rating from AM Best and launched its initial suite of multi-year guaranteed annuity (MYGA) products under the ReliAbility™ brand.
• Assets Under Management (AUM): Total AUM was $1.8 billion as of September 30, 2026. Ability's assets excluding intangibles and funds withheld were $691.2 million, down $96.3 million year-over-year; including Modco assets, Ability's total managed assets were $863 million, up $27 million.
• Insurance Investment Assets: The Insurance Solutions segment held approximately $1.0 billion of total investment assets, a decrease of $62.7 million from the prior year quarter.

Market and Competitive Landscape:

• The decrease in AUM and insurance investment assets was primarily attributable to the SSL reinsurance recapture transaction that occurred during the quarter.
• BC Partners, a long-standing shareholder and strategic partner, announced a trading plan to purchase up to $1.5 million of Mount Logan common stock in the open market over the next 12 months.

Risks and Challenges:

• Consolidated net loss for the third quarter of 2025 included TURN merger transaction expenses that did not recur in the current quarter.
• The Proposed AFA Transaction is subject to closing conditions, including fund shareholder and regulatory approvals.
• The press release notes forward-looking statements involve risks including the inability to complete transactions, changes in AUM, market volatility, regulatory changes, and reliance on key personnel and third-party systems.

Management Commentary and Tone:

• Ted Goldthorpe, CEO and Chairman, stated that third-quarter results reflect continued stability in the insurance business and year-to-date growth in Segment Income, even before the benefits of recent strategic initiatives begin to contribute meaningfully to earnings.
• Management expressed confidence that financial performance will improve beginning in the fourth quarter and build through 2027.

Other Key Points:

• Declared a quarterly stockholder distribution of $0.03 per share of common stock for the quarter ended September 30, 2026, payable on November 30, 2026; this marks the fourth consecutive quarter of the $0.03 distribution following the Business Combination.
• On October 20, 2026, Mount Logan signed a definitive agreement to succeed Alternative Fund Advisors, LLC as investment adviser to the AFA Asset Based Lending Fund, a roughly $230 million interval fund, which will bring interval fund assets to approximately $460 million.
• The company hosted an earnings conference call and webcast on November 6, 2026.
• FRE and SRE definitions were revised in the third quarter of 2026 to include a proportionate share of operating income on asset management investments held at fair value and to exclude net realized gains/losses on investment sales from SRE, respectively; prior periods were recast.