Mount Logan Capital Inc. Proclaims Fourth Quarter and Fiscal 2024 Monetary Outcomes

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Generated $15.3 million of insurance coverage section Unfold Associated Earnings (“SRE”) for the 12 months ended December 31, 2024, a big enhance over the prior 12 months interval

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Asset administration section generated $7.5 million in Charge Associated Earnings (“FRE”) for the 12 months ended December 31, 2024, a 36% enhance over the prior 12 months, and inside our beforehand acknowledged 2024 FRE steering vary

In the course of the quarter, the Firm accomplished an modification to its current company credit score facility, which included an upsize to help key enterprise initiatives and launched a pricing step-down mechanism

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Throughout January 2025, the Firm introduced it entered right into a definitive settlement to mix with 180 Diploma Capital Corp. (Nasdaq: TURN) in an all-stock transaction. The surviving entity is anticipated to function as Mount Logan Capital Inc. (“New Mount Logan”) and to be listed on Nasdaq beneath the image MLCI

In January 2025, Mount Logan additionally introduced it accomplished its beforehand introduced minority funding in Runway Development Capital LLC, a $1.3 billion Belongings Underneath Administration (”AUM”) non-public credit score asset supervisor, alongside BC Companions Credit score

All quantities are acknowledged in United States {dollars}, except in any other case indicated

TORONTO, March 13, 2025 (GLOBE NEWSWIRE) — Mount Logan Capital Inc. (Cboe Canada: MLC) (“Mount Logan” or the “Firm”) introduced right this moment its monetary outcomes for the 12 months ended December 31, 2024.

Fourth Quarter 2024 Highlights

• Whole income for the asset administration section of the Firm of $4.4 million, a rise of $0.7 million, or 19%, as in comparison with the fourth quarter of 2023. The rise is primarily as a result of development in charges attributable to administration of the Opportunistic Credit score Interval Fund (“SOFIX”) and better fairness funding earnings on Sierra Crest Funding Administration. Fourth quarter asset administration revenues exclude $1.2 million of administration charges related to Mount Logan’s administration of the belongings of Capacity Insurance coverage Firm (“Capacity”), a wholly-owned subsidiary of the Firm.
• Whole web funding revenue for the insurance coverage section was $23.8 million for the three months ended December 31, 2024, a rise of $4.5 million, or 23%, as in comparison with the fourth quarter of 2023, owing to a rise within the funding portfolio and enchancment in funding revenue relative to fourth quarter 2023 as a result of a reversal of an over-accrual of revenue in third quarter of 2023. Excluding the funds withheld beneath reinsurance contracts and Modco, the insurance coverage section’s web funding revenue was $15.3 million, a rise of $3.1 million, or 25%, as in comparison with the fourth quarter of 2023.

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Full Yr Milestones

• Whole income for the asset administration section was $15.7 million, a rise of $3.9 million as in comparison with $11.8 million in 2023, largely pushed by administration and incentive price development. Administration and incentive charges elevated $5.8 million from the prior 12 months, primarily because of the expiration of fee-sharing agreements related to the CLOs in December 2023, larger SOFIX administration and incentive charges as a result of efficiency enchancment and elevated AUM, a full 12 months of administration and incentive charges from Ovation’s managed fund in comparison with 2023 throughout which the Ovation acquisition closed within the third quarter of 2023, and sub-advisory charges persevering with to scale with elevated AUM all through 2024. 
• FRE for the asset administration section was $7.5 million, a rise of 36% in comparison with 2023, as a result of elevated administration and incentive charges as beforehand mentioned.
• Achieved 8.5%¹ yield on the insurance coverage funding portfolio for 2024, as a result of ongoing portfolio and capital optimization throughout the insurance coverage options portfolio alongside the good thing about larger treasury yields. Excluding the funds withheld beneath reinsurance contracts and Modco, the yield was 8.8%.
• Capacity’s whole belongings managed by Mount Logan elevated to $620.1 million for 2024, up $83.0 million from 2023 belongings of $537.1 million. Mount Logan completed 2024 with $1.05 billion in whole funding belongings at its insurance coverage section, up $36.8 million, or 4%, from 2023 funding belongings of $1.01 billion.
• Guide worth of the insurance coverage section for 2024 was $88.1 million, a rise of $21.6 million as in comparison with $66.5 million for 2023, pushed by larger insurance coverage web revenue.  
• SRE for the insurance coverage section elevated to $15.3 million for 2024, up $17.0 million from 2023 of $(1.7) million, primarily pushed by a rise in web funding revenue, and decrease value of funds and working bills. SRE is a non-IFRS monetary measure used to evaluate the insurance coverage section’s era of income excluding the affect of sure market volatility and different one-time, non-core elements of insurance coverage section revenue (loss). The Firm believes this measure is beneficial to shareholders because it supplies further perception into the underlying economics of the insurance coverage section.

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Subsequent Occasions

• Declared a shareholder distribution within the quantity of C$0.02 per widespread share for the quarter ended December 31, 2024, payable on April 10, 2025 to shareholders of report on the shut of enterprise on April 3, 2025. This money dividend marks the twenty-second consecutive quarter of the Firm issuing a C$0.02 distribution to its shareholders. This dividend is designated by the Firm as an eligible dividend for the aim of the Earnings Tax Act (Canada) and any related provincial or territorial laws. An enhanced dividend tax credit score applies to eligible dividends paid to Canadian residents.
• Introduced Mount Logan entered right into a definitive settlement to mix with 180 Diploma Capital Corp. (Nasdaq: TURN) (“180 Diploma Capital”), in an all-stock transaction (the “Enterprise Mixture”). The surviving entity is anticipated to be a Delaware company working as New Mount Logan listed on Nasdaq beneath the image MLCI. In reference to the Enterprise Mixture, MLC shareholders will obtain proportionate possession of New Mount Logan decided by reference to Mount Logan’s transaction fairness worth at signing, topic to sure pre-closing changes, relative to 180 Diploma Capital’s Internet Asset Worth (“NAV”) at closing. Shareholders holding roughly 26% of the excellent shares of Mount Logan and roughly 20% of the excellent shares of 180 Diploma Capital signed voting agreements supporting the Enterprise Mixture, and a further 8% of Mount Logan and seven% of 180 Diploma Capital shareholders, respectively, have offered written non-binding indications of help for the Enterprise Mixture.
• Introduced Mount Logan efficiently accomplished buy of minority stake in Runway Development Capital LLC (“Runway”), an SEC registered funding adviser, managing roughly $1.4 billion in non-public credit score belongings. Mount Logan acquired the minority stake alongside BC Companions Credit score, who acquired the bulk stake within the platform by means of non-public funds managed by BC Companions Credit score. There can be no change to Runway’s administration workforce or day-to-day operations following shut of the transaction.
• Portman Ridge Finance Company (Nasdaq: PTMN) and Logan Ridge Finance Company (Nasdaq: LRFC) introduced that they’ve entered into an settlement beneath which LRFC will merge with and into PTMN, topic to the receipt of sure shareholder approvals and the satisfaction of different closing circumstances. Mount Logan presently earns administration charges from LRFC and has a minority stake in PTMN’s supervisor, Sierra Crest Funding Administration.

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¹The yield is calculated based mostly on the web funding revenue much less administration charges paid to Mount Logan divided by the common of investments in monetary belongings for the present 12 months and prior 12 months.

Administration Commentary

• Ted Goldthorpe, Chief Govt Officer and Chairman of Mount Logan acknowledged, “We’re happy to report our robust fourth quarter and full 12 months 2024 outcomes, reflecting the sustainable earnings energy of our asset administration and insurance coverage platforms. In 2024, we delivered important development in each Charge Associated Earnings on the asset administration section, and Unfold Associated Earnings in our insurance coverage platform, offering a stable basis for continued momentum in 2025.  Our focus stays on driving constant working efficiency enhancements, whereas advancing our strategic priorities to scale the enterprise by means of natural development and strategic acquisitions, which incorporates our just lately introduced transactions with 180 Diploma Capital and Runway”.

Chosen Monetary Highlights

• Whole Capital of the Firm was $150.3 million at December 31, 2024, a rise of $20.8 million as in comparison with December 31, 2023. Whole capital consists of debt obligations and whole shareholders’ fairness.
• Consolidated web revenue (loss) earlier than taxes was $6.1 million for 2024, a rise of $21.9 million from ($15.8) million in 2023. The rise was primarily attributable to the advance in insurance coverage service end result, lower in web insurance coverage finance bills, enhance in web funding revenue and decline usually, administrative and different bills beneath the insurance coverage section when in comparison with 2023.  
• Fundamental Earnings per share (“EPS”) was $0.22 for 2024, a rise of $0.91 from $(0.69) for 2023.
• Adjusted fundamental EPS was $0.46 for 2024, a rise of $0.90 from $(0.44) for 2023.

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Outcomes of Operations by Section

($ in Hundreds)

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Asset Administration

Whole Income – Asset Administration

($ in Hundreds)

Charge Associated Earnings (“FRE”)

FRE is a non-IFRS monetary measure used to evaluate the asset administration section’s era of income from revenues which might be measured and acquired on a recurring foundation and should not depending on future realization occasions. The Firm calculates FRE, and reconciles FRE to web revenue from its asset administration actions, as follows:

($ in Hundreds)

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Insurance coverage

Whole Income – Insurance coverage

($ in Hundreds)

Unfold Associated Earnings (“SRE”)

Efficient March 31, 2024, the Firm has launched a brand new non-IFRS measure, SRE. The Firm makes use of SRE to evaluate the efficiency of the insurance coverage section, excluding the affect of sure market volatility and different one-time, non-core elements of insurance coverage section revenue (loss). Excluded gadgets beneath SRE are funding positive aspects (losses), results of low cost charges and different monetary variables on the worth of insurance coverage obligations (which is a element of “web insurance coverage finance revenue/(expense)”), different revenue and sure normal, administrative & different bills. The Firm believes this measure is beneficial to securityholders because it supplies further perception into the underlying economics of the insurance coverage section, as additional mentioned beneath.

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For the insurance coverage section, SRE equals the sum of (i) the online funding revenue on the insurance coverage section’s web invested belongings (excluding funding revenue earned on funds held beneath reinsurance contracts) much less (ii) value of funds (as described beneath) and (iii) sure working bills.

Price of funds consists of the affect of curiosity accretion on insurance coverage and funding contract liabilities and amortization of losses acknowledged for brand spanking new insurance coverage contracts which might be deemed onerous at preliminary recognition. It additionally consists of expertise changes which represents the distinction between precise and anticipated cashflows and consists of the affect of sure modifications to non-financial assumptions.

The Firm reconciles SRE to web revenue (loss) earlier than tax from its insurance coverage section actions, as follows:

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The next desk presents SRE, the efficiency measure of the insurance coverage section:

($ in Hundreds)

Unfold associated earnings (“SRE”) was $15.3 million for 2024 in contrast with $(1.7) million for 2023, a rise of $17.0 million. SRE elevated year-over-year as a result of elevated funding revenue, decrease value of funds, and decline in different working bills. Funding revenue elevated primarily as a result of larger whole insurance coverage funding belongings because of new multi-year assured annuity (“MYGA”) enterprise and enhancements in yield throughout the funding portfolio attributable to deployment of capital in the next price surroundings up by means of the second quarter of 2024. Price of funds declined primarily from a lower within the amortization of reinsurance contractual service margin (“CSM”) within the present interval as a result of change within the CSM amortization methodology, in addition to the one-time good thing about $4.8 million within the first quarter of 2024 because of an in-force replace to Lengthy Time period Care enterprise. Different working bills decreased because of efforts to scale back general working prices.

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SRE as a share of common web invested belongings was 2.5% for the 12 months ended December 31, 2024 in contrast with -0.3% for the 12 months ended December 31, 2023.

Liquidity and Capital Assets

As of December 31, 2024, the asset administration section had $77.8 million (par worth) of borrowings excellent, of which $33.8 million had a set price and $44 million had a floating price. As of December 31, 2024, the insurance coverage section had $14.3 million (par worth) of borrowings excellent. Liquid belongings, together with high-quality belongings which might be marketable, might be pledged as safety for borrowings, and might be transformed to money in a time-frame that meets liquidity and funding necessities. As of December 31, 2024 and December 31, 2023, the overall liquid belongings of the Firm have been as follows:

($ in Hundreds)

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The Firm defines working capital because the sum of money, restricted money, investments that mature inside one 12 months of the reporting date, administration charges receivable, receivables for investments offered, accrued curiosity and dividend receivables, and premium receivables, much less the sum of debt obligations, payables for investments bought, quantities as a result of associates, reinsurance liabilities, and different liabilities which might be payable inside one 12 months of the reporting date.

As at December 31, 2024, the Firm had working capital of $231.2 million, reflecting present belongings of $245.3 million, offset by present liabilities of $14.1 million, as in contrast with working capital of $183.4 million as at December 31, 2023, reflecting present belongings of $230.8 million, offset by present liabilities of $47.4 million. The rise in working capital was attributed to a rise in money throughout the asset administration enterprise from elevated administration and incentive price receipts, web proceeds from the issuance of debenture items, and the upsize of the present credit score facility at MLC US Holdings. The lower in as a result of associates is pushed by paydowns to BC Companions and a reclassification of the maturity of those balances from present to unspecified, and the lower in accrued bills is pushed by decrease transaction prices, transition providers settlement prices, and authorized price accruals additionally contributed to the rise in working capital. Within the insurance coverage enterprise, the settlement of payables associated to MYGA towards the brand new MYGA insurance policies assumed in addition to a rise in receivables for investments offered contributed to the rise in working capital.

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Curiosity Price Danger

The Firm has obligations to policyholders and different debt obligations that expose it to rate of interest danger.  The Firm additionally owns debt belongings and rate of interest swaps which might be uncovered to rate of interest danger.  The honest worth of those obligations and belongings might change if base price modifications in rates of interest happen.

The next desk summarizes the potential affect on web belongings of hypothetical base price modifications in rates of interest assuming a parallel shift within the yield curve, with all different variables remaining fixed.

Precise outcomes might differ considerably from this sensitivity evaluation. As such, the sensitivities ought to solely be considered as directional estimates of the underlying sensitivities for the respective components based mostly on the assumptions outlined above.

Convention Name

The Firm will maintain a convention name on Friday, March 14, 2025 at 9:00 a.m. Jap Time to debate the fourth quarter and 2024 monetary outcomes. Shareholders, potential shareholders, and analysts are welcome to take heed to the decision. To affix the decision, please use the dial-in data beneath. A recording of the convention name can be obtainable on our Firm’s web site www.mountlogancapital.ca within the ‘Investor Relations’ part beneath “Occasions”.

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Canada Dial-in Toll Free: 1-833-950-0062
US Dial-in Toll Free: 1-833-470-1428
Worldwide Dial-ins
Entry Code: 601424

About Mount Logan Capital Inc.

Mount Logan Capital Inc. is an alternate asset administration and insurance coverage options firm that’s targeted on private and non-private debt securities within the North American market and the reinsurance of annuity merchandise, primarily by means of its wholly owned subsidiaries Mount Logan Administration LLC (“ML Administration”) and Capacity Insurance coverage Firm (“Capacity”), respectively. Mount Logan additionally actively sources, evaluates, underwrites, manages, displays and primarily invests in loans, debt securities, and different credit-oriented devices that current engaging risk-adjusted returns and current low danger of principal impairment by means of the credit score cycle.

ML Administration was organized in 2020 as a Delaware restricted legal responsibility firm and is registered with the SEC as an funding adviser beneath the Funding Advisers Act of 1940, as amended. The first enterprise of ML Administration is to offer funding administration providers to (i) privately provided funding funds exempt from registration beneath the Funding Firm Act of 1940, as amended (the “1940 Act”) suggested by ML Administration, (ii) a non-diversified closed finish administration funding firm that has elected to be regulated as a enterprise growth firm, (iii) Capacity, and (iv) non-diversified closed-end administration funding corporations registered beneath the 1940 Act that function as interval funds. ML Administration additionally acts because the collateral supervisor to collateralized mortgage obligations backed by debt obligations and related belongings.

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Capacity is a Nebraska domiciled insurer and reinsurer of long-term care insurance policies and annuity merchandise acquired by Mount Logan within the fourth quarter of fiscal 12 months 2021. Capacity can also be now not insuring or re-insuring new long-term care danger.

Non-IFRS Monetary Measures

This press launch makes reference to sure non-IFRS monetary measures. These measures should not acknowledged measures beneath IFRS, would not have a standardized which means prescribed by IFRS and might not be corresponding to related measures introduced by different corporations. Somewhat, these measures are offered as further data to enrich IFRS monetary measures by offering additional understanding of the Firm’s outcomes of operations from administration’s perspective. The Firm’s definitions of non-IFRS measures used on this press launch might not be the identical because the definitions for such measures utilized by different corporations of their reporting. Non-IFRS measures have limitations as analytical instruments and shouldn’t be thought of in isolation nor as an alternative to evaluation of the Firm’s monetary data reported beneath IFRS. The Firm believes that securities analysts, traders and different events incessantly use non-IFRS monetary measures within the analysis of issuers. The Firm’s administration additionally makes use of non-IFRS monetary measures as a way to facilitate working efficiency comparisons from interval to interval.

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Cautionary Assertion Concerning Ahead-Wanting Statements

This press launch comprises forward-looking statements and data throughout the which means of relevant securities laws. Ahead-looking statements might be recognized by the expressions “seeks”, “expects”, “believes”, “estimates”, “will”, “goal” and related expressions. The forward-looking statements should not historic info however mirror the present expectations of the Firm concerning future outcomes or occasions and are based mostly on data presently obtainable to it. Sure materials components and assumptions have been utilized in offering these forward-looking statements. The forward-looking statements mentioned on this launch embrace, however should not restricted to, statements about the advantages of the closing of the acquisition of a minority curiosity in Runway in addition to the proposed transaction involving the Firm and 180 Diploma Capital, together with future monetary and working outcomes, the Firm’s and 180 Diploma Capital’s plans, goals, expectations and intentions, the anticipated timing and probability of completion of the proposed transaction, the regulatory surroundings during which the Firm operates, and the outcomes of, or outlook for, the Firm’s operations or for the Canadian and U.S. economies, statements referring to the Firm’s continued transition to an asset administration and insurance coverage platform enterprise and the coming into into of additional strategic transactions to diversify the Firm’s enterprise and additional develop recurring administration price and different revenue and growing Capacity’s belongings; the Firm’s plans to focus Capacity’s enterprise on the reinsurance of annuity merchandise; the potential advantages of mixing Mount Logan’s and Ovation’s platform together with a rise in fee-related earnings because of the acquisition; the lower in bills within the asset administration section; the historic development within the asset administration section and insurance coverage section being an indicator for future development; the expansion and scalability of the Firm’s enterprise the Firm’s enterprise technique, mannequin, method and future actions; portfolio composition and dimension, asset administration actions and associated revenue, capital elevating actions, future credit score alternatives of the Firm, portfolio realizations, the safety of stakeholder worth; the growth of the Firm’s mortgage portfolio; synergies to be achieved by each the Firm and Runway by means of the Firm’s strategic minority funding in Runway and the satisfaction of the circumstances upon which closing of the Runway transaction is conditional; and the growth of Mount Logan’s capabilities. All forward-looking statements on this press launch are certified by these cautionary statements. The Firm believes that the expectations mirrored in forward-looking statements are based mostly upon cheap assumptions; nevertheless, the Firm can provide no assurance that the precise outcomes or developments can be realized by sure specified dates or in any respect. These forward-looking statements are topic to a variety of dangers and uncertainties that might trigger precise outcomes or occasions to vary materially from present expectations, together with that the Firm has a restricted working historical past with respect to an asset administration oriented enterprise mannequin; Capacity might not generate recurring asset administration charges, enhance its belongings or strategically profit the Firm as anticipated; the anticipated synergies by combining the enterprise of Mount Logan with the enterprise of Capacity might not be realized as anticipated; the danger that Capacity might require a big funding of capital and different sources as a way to broaden and develop the enterprise; the Firm doesn’t have a report of working an insurance coverage options enterprise and is topic to all of the dangers and uncertainties related to a broadening of the Firm’s enterprise; means to acquire the requisite Firm and 180 Diploma Capital shareholder approvals, in addition to governmental and regulatory approvals required for the proposed transaction with 180 Diploma Capital, the danger that an occasion, change or different circumstance may give rise to the termination of the proposed transaction with 180 Diploma Capital, the danger {that a} situation to closing of the proposed transaction with 180 Diploma Capital might not be happy, the danger of delays in finishing the proposed transaction with 180 Diploma Capital, the danger that the companies of the Firm and with 180 Diploma Capital is not going to be built-in efficiently, the danger that the anticipated synergies of the acquisition of Ovation might not be realized as anticipated and the issues mentioned beneath “Dangers Elements” in probably the most just lately filed annual data type and administration dialogue and evaluation for the Firm. Readers, due to this fact, mustn’t place undue reliance on any such forward-looking statements. Additional, a forward-looking assertion speaks solely as of the date on which such assertion is made. The Firm undertakes no obligation to publicly replace any such assertion or to mirror new data or the prevalence of future occasions or circumstances besides as required by securities legal guidelines. These forward-looking statements are made as of the date of this press launch.

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This press launch is just not, and by no means is it to be construed as, a prospectus or an commercial and the communication of this launch is just not, and by no means is it to be construed as, a proposal to promote or a proposal to buy any securities within the Firm or in any fund or different funding automobile. This press launch is just not meant for U.S. individuals. The Firm’s shares should not and won’t be registered beneath the U.S. Securities Act of 1933, as amended, and the Firm is just not and won’t be registered beneath the U.S. Funding Firm Act of 1940 (the “1940 Act”). U.S. individuals should not permitted to buy the Firm’s shares absent an relevant exemption from registration beneath every of those Acts. As well as, the variety of traders in america, or that are U.S. individuals or buying for the account or good thing about U.S. individuals, can be restricted to such quantity as is required to adjust to an obtainable exemption from the registration necessities of the 1940 Act.

Contacts:
Mount Logan Capital Inc.
365 Bay Road, Suite 800
Toronto, ON M5H 2V1
data@mountlogancapital.ca

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Nikita Klassen
Chief Monetary Officer
Nikita.Klassen@mountlogancapital.ca

Scott Chan
Investor Relations
Scott.Chan@mountlogan.com

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