Mount Logan Capital Inc.
For the period ended Jun 30, 2026. Filed Aug 11, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 11, 2026
MLCI$3.47-2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-14.
0001628280-26-035167
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-11.
0001628280-26-055789
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 309 previous paragraphs and 358 current paragraphs.
233 unchanged; 57 reworded; 58 added; 14 removed; 5 previous and 10 current paragraphs rearranged.
Tables are not compared: 15 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (58)
Current report
Equity Investment Earning
Current report
Mount Logan owns a minority interest in SCIM which is accounted for as an investment in associate, and earns its share of the investee’s net income.
Current report
Other Expenses
Current report
The balance of our other expenses includes transaction costs, amortization and impairment of intangible assets, interest and other credit facility expenses, and general, administrative and other operating expenses. Transaction costs are related to any live, closed or dead deal costs. Amortization and impairment of intangible assets is related to purchased investment management agreements as discussed in Note 11. Goodwill and intangible assets to our condensed consolidated financial statements. Interest and credit facility expenses consists of interest and amortization of deferred financing costs related to our debt obligations as discussed in Note 12. Debt obligations to our condensed consolidated financial statements. General, administrative and other expenses includes professional fees and costs related to third party vendors, information technology, travel, and reporting and operations.
Current report
Net realized and change in unrealized gains (losses) from investment activities
Current report
Dividend and Interest Income
Current report
Dividend income consists primarily of distributions from equity investments, and interest income includes interest on the related party loan to SCIM as well as bank interest on cash held in money markets funds.
Current report
Other Income (Loss), Net
Current report
Other Income (loss) primarily consists of income from our profit sharing agreement over BCIC, and occasionally miscellaneous income.
Current report
Other
Current report
The balance of other income or loss includes gains or losses resulting from one-off events material enough to disclose separately.
Current report
Net realized and change in unrealized gains (losses) from investment activities
Current report
Revenues were $2.3 million in 2026, a decrease of $1.1 million from $3.3 million in 2025, driven by a decrease in management and incentive fees, partially offset by an increase in equity investment earnings.
Current report
Management fees decreased $1.1 million, primarily due to the termination of the Logan Ridge investment management agreement ("IMA") following the July 2025 merger of Logan Ridge and Portman Ridge, and lower fees from the Ovation funds, First Trust, the CLOs and OCIF. The declines in the Ovation, First Trust and CLO fee streams reflected continued wind-down or runoff of the underlying vehicles. OCIF management fees decreased primarily because of higher contractual fee waivers in relation to expense caps on average net assets. These decreases were partially offset by higher fees under the Nichol IMA as the managed asset base increased after the mandate signed in March 2026.
Current report
Incentive fees decreased $0.1 million, reflecting lower OCIF pre-incentive fee net investment income.
Current report
Equity investment earnings increased by $0.1 million due to better net income results in SCIM, which were primarily driven by the elimination of the legacy cost reimbursement program at SCIM upon the Logan Ridge and Portman merger. SCIM was the adviser of Portman and effective July 15, 2025, upon closing of the merger of Logan Ridge and Portman, became the advisor to the combined company, renamed BCIC.
Current report
Expenses were $8.2 million in 2026, a decrease of $3.3 million from $11.5 million in 2025. The decrease was primarily driven by lower transaction costs and amortization of intangible assets, partially offset by higher general, administrative and other expenses and interest and credit facility expenses.
Current report
Compensation and benefits costs decreased $1.6 million, primarily due to the acceleration of the RSUs vesting upon change in control related to Mount Logan’s merger with TURN and severance costs for several individuals.
Current report
Removing the noise from the compensation cost reclass, administration and servicing fees increased $0.2 million in 2026 compared to 2025, primarily due to higher sub-investment management expenses related to the increased managed asset base on the Nichol IMA.
Current report
General, administrative and other expenses increased $0.6 million, primarily due to higher consulting and legal professional fee spend.
Current report
Total investment and other income was a loss of $0.2 million in 2026 compared with income of $1.2 million in 2025. The decrease was primarily driven by movements on assets and liabilities held at fair value, partially offset by the increase in income under the profit-sharing agreement.
Current report
Net realized and change in unrealized gains (losses) from investment activities decreased $1.8 million primarily driven by unrealized losses on equity investments in 2026 compared with unrealized gains in 2025, and by the absence of the $0.4 million fair value gain recognized in 2025 on the Capitala seller note (refer to Note 12. Debt obligations of the Condensed Consolidated Financial Statements for further details regarding Mount Logan’s debt obligations).
Current report
Revenues were $6.5 million in 2026, a decrease of $7.3 million from $13.8 million in 2025. The decrease was primarily driven by decreases in net realized and change in unrealized gains (losses) from investment activities, net revenues of consolidated VIEs, net investment income, product charges, net premiums, and net investment income (loss) on funds withheld.
Current report
Net realized and change in unrealized gains (losses) from investment activities were gains of $0.5 million in 2026, a decrease of $3.4 million from gains of $3.8 million in 2025, primarily driven by lower unrealized gains resulting from interest rate movements. This decrease was also attributable to higher credit loss reserve recognized on funds withheld assets under the Modco arrangement in 2026. These decreases were partially offset by lower realized losses in 2026 compared to 2025.
Current report
Net revenues of consolidated VIEs were $2.0 million in 2026, a decrease of $1.6 million from $3.5 million in 2025, primarily driven by unfavorable change in fair value of assets due to interest rate movements, resulted in higher unrealized losses in 2026 . The decrease was also attributable to lower net investment income and higher realized losses compared to 2025.
Current report
Net investment income was $15.3 million in 2026, a decrease of $1.4 million from $16.7 million in 2025, primarily due to an out-of- period adjustment recognized in 2026 to correct an income overstatement from a prior period, as well as increase in management fees associated with funds withheld assets under the Modco arrangement with Nichol. These decreases were partially offset by disposal of non-performing assets and the reinvestment of proceeds in higher-yielding assets.
Current report
Net investment income (loss) on funds withheld were a loss of ($6.9) million in 2026, which reflects a decrease of $0.1 million from a loss of ($6.8) million in 2025. This decrease was primarily driven by overall increase in the income attributable to funds withheld assets in 2026.
Current report
Expenses were$4.6 million in 2026, a decrease of$3.2 million from$7.7 million in 2025. The decrease was driven by decreases in net policy benefit & claims and DAC amortization. These decreases were partially offset by increases in general, administrative & other expenses and interest sensitive contract benefits.
Current report
Net policy benefit and claims were($4.3) million in 2026, a decrease of$3.2 million from($1.1) million in 2025, primarily driven by a favorable assumption update of $1.6 million and a favorable experience adjustment of 0.1 million in the LTC business in 2026 while 2025 observed an unfavorable experience adjustment of $1.5 million.
Current report
DAC amortization was $0.7 million in 2026, a decrease of $0.2 million from $0.9 million in 2025, primarily due to lower early surrenders on existing MYGA policies. The higher level of surrenders in 2025 resulted in accelerated amortization of DAC associated with surrendered policies.
Current report
Asset Management Segment
Current report
Management fees decreased $2.7 million primarily due to the termination of the Logan Ridge investment management agreement ("IMA") following the July 2025 merger of Logan Ridge and Portman Ridge, and lower fees from the Ovation funds, First Trust, the CLOs and OCIF. The declines in the Ovation, First Trust and CLO fee streams reflected continued wind-down or runoff of the underlying vehicles. OCIF management fees decreased primarily due to one-time out of period fee reimbursements in 2025, and higher contractual fee waivers in relation to expense caps on average net assets in 2026. These decreases were partially offset by higher fees under the Nichol IMA as the managed asset base increased after the mandate signed in March 2026.
Current report
Incentive fees increased less than $0.1 million, as lower incentive fee waivers in 2026 more than offset lower gross incentive fees. Gross incentive fees actually decreased due to lower OCIF pre-incentive fee net investment income, driven by a shift in the nature of investments held in the fund.
Current report
Expenses were $17.6 million in 2026, a decrease of $6.7 million from $24.2 million in 2025. The decrease was primarily driven by lower transaction costs and amortization of intangible assets, partially offset by higher general, administrative and other expenses, and interest and other credit facility expenses.
Current report
Compensation and benefits decreased $3.8 million while administration and servicing fees increased $3.9 million primarily due to the Company’s employees being transferred to BCPA on October 1, 2025. The related cost shift from direct compensation to fees under the Servicing Agreement and Staffing and Resource Agreement caused the offsetting movements in these line items. Refer to Note 22. Related parties for further detail on these agreements.
Current report
Taken together, compensation and benefits and administration and servicing fees were relatively unchanged. Outside of the cost shift, administration and servicing fees increased as the economic loss on the ACIF servicing arrangement was higher due to declining fees, and investment expenses were higher due to sub-investment management expenses related to the increased managed asset base on the Nichol IMA.
Current report
General, administrative and other expenses increased $1.9 million in 2026 primarily due to higher consulting and legal costs, and a one-time stock exchange tier entry listing fee.
Current report
Other income increased $0.3 million, primarily due to $0.6 million of income under the new Profit-Sharing Agreement entered in the third quarter of 2025 (refer to Note 22. Related parties of the Condensed Consolidated Financial Statements for further details regarding the Profit-Sharing Agreement). The increase was partially offset by the absence of approximately $0.3 million of tax refunds and other miscellaneous income recognized in 2025.
Current report
Insurance Solutions Segment
Current report
Net realized and change in unrealized gains (losses) from investment activities were losses of $4.5 million in 2026, a decrease of $9.8 million from gains of $5.3 million in 2025. The decrease was primarily driven by higher unrealized losses resulting from interest rates movements and related market valuation impacts. This decrease was partially offset by the release of credit loss reserve following the disposal of non-performing assets and lower net realized losses on sale of assets in 2026.
Showing the first 40 of 58 passages. Open the source sections for the rest.
Removed paragraphs (14)
Previous report
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Previous report
The $0.1 million increase in incentive fees was driven by the reduction in fee waivers on the OCIF incentive fee.
Previous report
Expenses were $9.4 million in 2026, a decrease of $3.4 million from $12.7 million in 2025, primarily driven by the reduction in transaction costs, partially offset by the increase in general, administrative and other costs.
Previous report
General, administrative and other expenses increased $1.3 million in 2026 primarily due to increased consulting costs and stock exchange fees that are one-time in nature. Consulting fee increases largely pertain to the investigation of misconduct by a former employee of ML Management. Stock exchange fee increases largely relate to the one-time tier entry fee resulting from the Company issuing $40 million of Exchange Listed Notes (refer to Note 12. Debt obligations of the Condensed Consolidated Financial Statements for further details).
Previous report
Removing the impact of the effective compensation cost reclass, administration and servicing fees increased $0.2 million in 2026 compared to 2025, primarily due to the net economic loss attributable to Mount Logan’s servicing agreement with SCIM. Mount Logan’s servicing agreement with SCIM is for ACIF, an interval fund, and is calculated as the gross management and incentive fees paid by ACIF net of expenses incurred under the servicing agreement. The increase in economic loss attributable to the servicing agreement with SCIM was primarily driven by lower management fees and higher staffing related, technology and compliance and regulatory costs.
Previous report
Investment and Other Income (Loss)
Previous report
Net gains (losses) from investment activities were losses of $5.0 million in 2026, a decrease of $6.5 million from gains of $1.5 million in 2025, primarily due to higher unrealized losses resulting from interest rates movements and associated market valuation impacts, rather than credit-related deterioration within the investment portfolio.
Previous report
Net revenues of consolidated VIEs were $0.1 million in 2026, a decrease of $3.8 million from $3.6 million in 2025, primarily reflecting interest-rate-driven unrealized losses on underlying assets, along with realized losses from investment sales during the period.
Previous report
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Previous report
Administration and servicing fees increased by $0.6 million primarily due to the net economic loss attributable to Mount Logan’s servicing agreement with SCIM. Mount Logan’s servicing agreement with SCIM is for ACIF, an interval fund, and is calculated as the gross management and incentive fees paid by ACIF net of expenses incurred under the servicing agreement. The increase in economic loss attributable to the servicing agreement with SCIM was primarily driven by lower management fees and higher staffing related, technology and compliance and regulatory costs.
Previous report
General, administrative and other costs increased by $0.1 million largely due to out of period allocation of shared expenses between BCPA and the Company.
Previous report
Incentive fees increased by $0.1 million driven by the reduction in fee waivers on the OCIF incentive fee.
Previous report
Spread Related Earnings
Previous report
Net investment income and realized gains (losses) decreased by $0.8 million. Net investment income decreased due to lower treasury yields, increased management fees and higher realized losses in 2026 compared to 2025.
Reworded paragraphs (57)
Previous wording
Mount Logan’s Asset Management segment focuses on generating recurring asset management fee streams across a variety of credit investing strategies. Mount Logan raises, invests and manages funds, accounts and other vehicles with an emphasis on private credit. As of March 31, 2026, Mount Logan had a total AUM of $2.1 billion.
Current wording
Mount Logan’s Asset Management segment focuses on generating recurring asset management fee streams across a variety of credit investing strategies. Mount Logan raises, invests and manages funds, accounts and other vehicles with an emphasis on private credit. As of June 30, 2026, Mount Logan had a total AUM of $2.0 billion.
Previous wording
The Asset Management segment also holds a minority interest in Sierra Crest Investment Management (“SCIM”), which manages BCP Investment Corporation (“BCIC”), formerly known as Portman Ridge Finance Corp. (“Portman” or “Portman Ridge”), a United States business development company, and Alternative Credit Income Fund (“ACIF”), a closed-end interval fund that invests in a portfolio of public and private credit investments. SCIM is majority owned by BCPA.
Current wording
The Asset Management segment also holds a minority interest in Sierra Crest Investment Management (“SCIM”), which manages BCIC, formerly known as Portman Ridge Finance Corp. (“Portman” or “Portman Ridge”), a United States business development company, and Alternative Credit Income Fund (“ACIF”), a closed-end interval fund that invests in a portfolio of public and private credit investments. SCIM is majority owned by BCPA.
Previous wording
Mount Logan carefully monitors economic and market conditions that could potentially give rise to market volatility and affect its business operations, including inflation and benchmark interest rates. According to the U.S. Bureau of Labor Statistics, the annual U.S. inflation rate increased to 3.3% from December 31, 2025 to March 31, 2026. This heightening of inflation was part of a broader trend of increasing inflationary pressures. The Federal Reserve maintained the federal funds rate target range at 3.5% to 3.75% throughout the first quarter of 2026, following a series of rate cuts in late 2025, and as of its March 2026 meeting continued to signal a cautious approach in light of mixed signals on inflation and growth. While the Federal Reserve in the United States and central banks in other countries have continued to cut interest rates as inflation rates have gradually weakened, they may raise rates again in the future due to ongoing inflation concerns. This potential increase, combined with reduced government spending and financial market volatility, could further elevate economic uncertainty and associated risks. Additionally, interest rate hikes or other government measures aimed at curbing inflation might lead to recessionary pressures globally. Such a recession could significantly and adversely impact Mount Logan’s business, financial condition, operational results, liquidity, and cash flows.
Current wording
Mount Logan carefully monitors economic and market conditions that could potentially give rise to market volatility and affect its business operations, including inflation and benchmark interest rates. According to the U.S. Bureau of Labor Statistics, the annual U.S. inflation rate increased to 3.5% from December 31, 2025 to June 30, 2026. This heightening of inflation was part of a broader trend of increasing inflationary pressures. The Federal Reserve maintained the federal funds rate target range at 3.50% to 3.75% throughout the second quarter of 2026, following a series of rate cuts in late 2025. and at its June 2026 meeting continued to balance concerns about inflation, growth, and labor market conditions. Monetary-policy paths across major economies were not uniformly easing as of June 30, 2026: some central banks maintained their policy rates, while others raised rates in response to persistent or renewed inflationary pressures. Accordingly, the Federal Reserve and other central banks could maintain policy rates at current levels or raise them further if inflation remains elevated or reaccelerates, while weaker economic growth or labor-market conditions could result in renewed easing. More generally, higher rates, fiscal tightening, or market volatility can contribute to economic uncertainty and recession risk, and such conditions could adversely affect Mount Logan’s business, financial condition, results of operations, liquidity, and cash flows.
Previous wording
Both medium-term and long-term rates increased between the fourth quarter of 2025 and the first quarter of 2026, with the U.S. 10-year Treasury yield at 4.32% as of March 31, 2026 compared to 4.17% as of December 31, 2025. Short term rates remained relatively flat in the same period, with the 3-month secured overnight financing rate at 3.68% as of March 31, 2026 compared to 3.65% as of December 31, 2025 respectively.
Current wording
Both medium-term and long-term rates increased between the first and second quarter of 2026, with the U.S. 10-year Treasury yield at 4.44% as of June 30, 2026 compared to 4.32% as of March 31, 2026. Short term rates increased in the same period, with the 3-month secured overnight financing rate at 3.73% as of June 30, 2026 compared to 3.68% as of March 31, 2026.
Previous wording
As of March 31, 2026, Ability’s net invested asset portfolio included $327 million of floating rate investments, or 43% of its net invested assets. In periods of prolonged low interest rates, the net investment spread may be negatively impacted by reduced investment income to the extent that Ability is unable to adequately reduce policyholder crediting rates due to policyholder guarantees in the form of minimum crediting rates or otherwise due to market conditions. A significant majority of the MYGA policies Ability reinsures have crediting rates that reset upon renewal. While Ability has the contractual right to not accept the renewals, its willingness to do so may be limited by competitive pressures.
Current wording
As of June 30, 2026, Ability’s net invested asset portfolio included $329.9 million of floating rate investments, or 44% of its net invested assets. In periods of prolonged low interest rates, the net investment spread may be negatively impacted by reduced investment income to the extent that Ability is unable to adequately reduce policyholder crediting rates due to policyholder guarantees in the form of minimum crediting rates or otherwise due to market conditions. A significant majority of the MYGA policies Ability reinsures have crediting rates that reset upon renewal. While Ability has the contractual right to not accept the renewals, its willingness to do so may be limited by competitive pressures.
Previous wording
During the first quarter of 2024, Mount Logan entered into interest rate swaps to economically hedge fair value interest rate risk on floating rate debt investments. Mount Logan does not designate derivatives (interest rate swaps) as hedging instruments under a fair value hedge accounting model. Derivatives are initially measured at fair value with subsequent changes therein recognized in the Condensed Consolidated Statements of Comprehensive Income (Loss). Mount Logan’s derivative instruments are disclosed below:
Current wording
During the first quarter of 2024, Mount Logan entered into interest rate swaps to convert floating-rate interest receipts to fixed-rate interest receipts to reduce exposure to interest rate changes. Mount Logan recognize these derivatives as a Derivatives asset or Derivatives liability and they are presented on a gross basis in the Condensed Consolidated Statements of Financial Position and measured at fair value unless there is a legal right of set-off. Derivatives are initially measured at fair value with subsequent changes therein recognized in the Condensed Consolidated Statements of Comprehensive Income (Loss) as the swaps are in hedging relationships, with changes in fair value reclassified into Interest income in the same period as the hedged transactions affect earnings. Mount Logan’s derivative instruments are disclosed below:
Previous wording
The following table summarizes Mount Logan’s (i) management fees and (ii) incentive fees by fee generating vehicle:
Current wording
The following quarter to date and year to date tables summarize Mount Logan’s (i) management fees and (ii) incentive fees by fee generating vehicle:
Previous wording
Mount Logan grants equity awards to certain directors, officers, service providers and employees, consisting of Restricted Stock Units (“RSUs”) that generally vest and become exercisable in annual installments depending on the award terms. See Note 20. Equity based compensation to Mount Logan’s Condensed Consolidated Financial Statements for further discussion of equity-based compensation.
Current wording
Mount Logan grants equity awards to certain directors, officers, and service providers, consisting of Restricted Stock Units (“RSUs”) that generally vest and become exercisable in annual installments depending on the award terms. See Note 20. Equity based compensation to Mount Logan’s Condensed Consolidated Financial Statements for further discussion of equity-based compensation.
Previous wording
Mount Logan’s income tax expense decreased in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. For the three months ended March 31, 2026, Mount Logan had no income tax expense while for the three months ended March 31, 2025, Mount Logan incurred an income tax expense of less than $0.1 million. Income tax expense was $nil for the three months ended March 31, 2026 as the statutory tax benefit arising from the pretax loss was fully offset by an increase in the valuation allowance against deferred tax assets and other items, as management determined that certain deferred tax assets generated in the period are not more-likely-than-not to be realized.
Current wording
Mount Logan had no income tax expense in the second quarter of 2026 compared to a small income tax benefit in the second quarter of 2025. Mount Logan’s income tax expense decreased in the six months ended June 30, 2026 compared to the six months ended June 30, 2025. For the six months ended June 30, 2026, Mount Logan had no income tax expense while for the six months ended June 30, 2025, Mount Logan incurred an income tax expense of less than $0.1 million. Income tax expense was $nil for the six months ended June 30, 2026 as the statutory tax benefit arising from the pretax loss was fully offset by an increase in the valuation allowance against deferred tax assets and other items, as management determined that certain deferred tax assets generated in the period are not more-likely-than-not to be realized.
Previous wording
Below is a discussion of Mount Logan’s Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025. For additional analysis of the factors that affected Mount Logan’s results at the segment level, see “Segment Analysis” below:
Current wording
Below is a discussion of Mount Logan’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025. For additional analysis of the factors that affected Mount Logan’s results at the segment level, see “Segment Analysis” below:
Previous wording
Amortization and impairment of intangible assets decreased $0.5 million in 2026 as the Ovation IMA intangible asset is amortized on a basis that reflects the net asset value decline in the underlying fee-generating funds which are in wind-down. A larger value of assets were liquidated from the funds in 2025 than 2026, and thus amortization expense mirrors this.
Current wording
Amortization and impairment of intangible assets decreased $1.2 million in 2026 as the Ovation IMA intangible asset is amortized on a basis that reflects the net asset value decline in the underlying fee-generating funds which are in wind-down. A larger value of assets were liquidated from the funds in 2025 than 2026, and thus amortization expense mirrors this.
Previous wording
Compensation and benefits decreased $2.2 million while administration and servicing fees increased $2.4 million primarily due to the Company’s employees being transferred to BCPA on October 1, 2025. This effectively resulted in direct compensation costs being exchanged for administrative fees charged by BCPA as servicing agent. As such, the decrease in on-going compensation costs related to these transferred employees was offset by the increase in administrative fees.
Current wording
Compensation and benefits decreased $1.6 million while administration and servicing fees increased $1.5 million primarily due to the Company’s employees being transferred to BCPA on October 1, 2025. This effectively resulted in direct compensation costs being exchanged for administrative and staffing fees charged by BCPA as servicing agent. As such, the decrease in on-going compensation costs related to these transferred employees was offset by the increase in administrative fees. The true compensation decrease is in relation to stock compensation expense. In 2025 under the 2019 RSU Plan, $0.3 million of compensation expense was recorded, compared to less than $0.1 million in 2026 for awards granted under the 2025 Plan. Refer to Note 20. Equity based compensation for further detail.
Previous wording
Other income decreased as the one-time tax refunds received in relation to prior period tax returns in 2025 outweighed the new income earned as a result of the Profit-Sharing Agreement that was entered into during the third quarter of 2025. Refer to Note 22. Related parties of the Condensed Consolidated Financial Statements for further details regarding the Profit-Sharing Agreement.
Current wording
Other income increased $0.5 million due to the introduction of the profit-sharing agreement in the third quarter of 2025. Refer to Note 22. Related parties of the Condensed Consolidated Financial Statements for further details regarding the profit-sharing Agreement.
Previous wording
Product charges were $0.1 million in 2026, which reflects a decrease of $0.7 million from $0.9 million in 2025, primarily driven by lower early surrenders of MYGA policies in 2026 compared to 2025.
Current wording
Product charges were $0.2 million in 2026, which reflects a decrease of $0.6 million from $0.7 million in 2025, primarily driven by a decrease in early surrenders of MYGA policies in 2026 compared to 2025 which resulted in lower surrender charges/product charges paid by policyholders in 2026.
Previous wording
Net premiums were ($4.2) million in 2026, a decrease of $0.2 million from ($4.0) million in 2025. The negative net premium reflects ceded premiums exceeding direct and assumed premiums within the LTC business, primarily due to additional ceded premiums paid to transfer a substantial portion of LTC related risk under a reinsurance arrangement. The decrease in net premiums was primarily driven by a decrease of $1.1 million in direct and assumed premiums compared to 2025, partially offset by a decrease of $0.9 million in ceded premium related to the LTC business compared to 2025.
Current wording
Net premiums were ($4.5) million in 2026, a decrease of $0.2 million from ($4.2) million in 2025. The negative net premium reflects ceded premiums exceeding direct and assumed premiums within the LTC business, primarily due to additional ceded premium paid to transfer a substantial portion of LTC related risk under a reinsurance arrangement. The decrease in net premiums was primarily driven by a decrease of $1.1 million in direct and assumed premium compared to 2025, partially offset by a decrease of $0.9 million in ceded premium related to the LTC business compared to 2025.
Previous wording
General, administrative and other expenses were $4.3 million in 2026, an increase of $0.6 million from $3.7 million in 2025. Expenses were higher in 2026, primarily due to upfront costs incurred to support new initiatives.
Current wording
General, administrative & other expenses were$3.6 million in 2026, an increase of$0.4 million from$3.3 million in 2025. Expenses were higher in 2026 primarily due to implementation costs for new initiatives in 2026 compared to 2025.
Previous wording
DAC amortization was $0.7 million in 2026, an increase of $0.2 million from $0.6 million in 2025, primarily due to amortization of the acquisition cost related to additional MYGA block assumed from NSG in the second quarter of 2025.
Current wording
Interest sensitive contract benefits were $4.2 million in 2026, an increase of $0.2 million from $4.0 million in 2025, primarily driven by interest accretion on the additional MYGA block assumed from NSG in the second quarter of 2025.
Previous wording
Mount Logan recorded no income tax expense in 2026, a decrease from the income tax expense of less than $0.1 million in 2025. Income tax expense was $nil in 2026 as the $1.3 million statutory tax benefit on the pre-tax loss of $6.0 million was offset primarily by nondeductible differences of $0.8 million and an increase in the valuation allowance of $0.4 million, partially offset by a dividends received deduction of less than $0.1 million, resulting in no net income tax expense or benefit for the period. The provision for income taxes includes federal, state, local and foreign income taxes, resulting in an effective income tax rate of 0.0% and (0.54%) for 2026 and 2025, respectively. For 2026, the most significant reconciling items between the U.S. federal statutory income tax rate of 21.0% and the effective income tax rate were nondeductible differences of $0.8 million and the increase in the valuation allowance against deferred tax assets of $0.4 million. See Note 18. Income taxes to the Condensed Consolidated Financial Statements for further details regarding Mount Logan’s income tax (provision) benefit.
Current wording
Mount Logan recorded no income tax expense in 2026, a change from the small income tax benefit in 2025. Income tax expense was $nil in 2026 as the $0.9 million statutory tax benefit on the pre-tax loss of $4.2 million was offset primarily by an increase in the valuation allowance of $1.7 million, partially offset by a dividends received deduction of less than $0.1 million and nondeductible differences of $0.8 million, resulting in no net income tax expense or benefit for the period. The provision for income taxes includes federal, state, local and foreign income taxes, resulting in an effective income tax rate of 0.0% and 0.95% for 2026 and 2025, respectively. For 2026, the most significant reconciling items between the U.S. federal statutory income tax rate of 21.0% and the effective income tax rate were nondeductible differences of $0.8 million and the increase in the valuation allowance against deferred tax assets of $1.7 million. See Note 18. Income taxes to the Condensed Consolidated Financial Statements for further details regarding Mount Logan’s income tax (provision) benefit.
Previous wording
Revenues were $2.5 million in 2026, a decrease of $1.4 million from $3.8 million in 2025, driven by a decrease in management fees, partially offset by an increase in incentive fees, equity investment earnings and advisory and transaction fees earned in the first quarter of 2026.
Current wording
Revenues were $4.7 million in 2026, a decrease of $2.4 million from $7.2 million in 2025. The decrease was driven by lower management fees, partially offset by an increase in incentive fees, equity investment earnings and advisory and transaction fees.
Previous wording
Equity investment earnings increased by $0.1 million due to favorable net income from SCIM, which was primarily driven by the elimination of the legacy cost reimbursement program at SCIM upon the Logan Ridge and Portman Ridge merger. SCIM was the adviser of Portman Ridge and effective July 15, 2025, upon closing of the merger of Logan Ridge and Portman Ridge, became the advisor to the combined company, renamed BCP Investment Corporation (“BCIC”).
Current wording
Equity investment earnings increased by $0.2 million due to favorable net income from SCIM, which was primarily driven by the elimination of the legacy cost reimbursement program at SCIM upon the Logan Ridge and Portman Ridge merger. SCIM was the adviser of Portman Ridge and effective July 15, 2025, upon closing of the merger of Logan Ridge and Portman Ridge, became the advisor to the combined company, renamed BCIC.
Previous wording
Advisory and transaction fees are a new, non-recurring fee stream that started in the fourth quarter of 2025. During the first quarter of 2026, the Company earned$0.1 million of origination fees related to assets originated into the Ability investment portfolio by ML Management.
Current wording
Advisory and transaction fees are a new, non-recurring fee stream that started in the fourth quarter of 2025. During 2026, the Company earned $0.1 million of origination fees related to assets originated into the Ability investment portfolio by ML Management.
Previous wording
Transaction costs decreased $4.5 million in 2026 given the 2025 transaction costs were related to Mount Logan’s merger with TURN, which closed in the third quarter of 2025. Refer to Note 3. Business combinations of the Condensed Consolidated Financial Statements for further details.
Current wording
Transaction costs decreased $7.3 million in 2026 given the 2025 transaction costs were related to Mount Logan’s merger with TURN, which closed in the third quarter of 2025. Refer to Note 3. Business combinations of the Condensed Consolidated Financial Statements for further details.
Previous wording
Interest and other credit facility expenses increased by less than $0.1 million in 2026 as there was a net increase in debt obligations. The increase in debt from the issuance of exchange listed notes was offset by the partial paydown on the MLC US Holdings credit facility (refer to Note 12. Debt obligations of the Condensed Consolidated Financial Statements for further details).
Current wording
Interest and other credit facility expenses increased by $0.3 million in 2026 as there was a net increase in debt obligations. The increase in debt from the issuance of exchange listed notes and additional debenture units outweighed the partial paydown on the MLC US Holdings credit facility (refer to Note 12. Debt obligations of the Condensed Consolidated Financial Statements for further details).
Previous wording
Total investment and other income decreased $1.7 million, primarily due to movements on assets and liabilities held at fair value, and the loss on extinguishment of debt from the partial paydown of the MLC US Holdings credit facility.
Current wording
Total investment and other income decreased $3.0 million, primarily due to movements on assets and liabilities held at fair value, and the loss on extinguishment of debt from the partial paydown of the MLC US Holdings credit facility, partially offset by higher other income and interest income.
Previous wording
Net gains from investment activities decreased by $1.2 million into net losses, primarily due to a $1.0 million unrealized gain recognized in 2025 on the seller note issued in relation to the Capitala acquisition, which was repaid at its final repayment amount of $0.1 million on October 31, 2025 (refer to Note 12. Debt obligations of the Condensed Consolidated Financial Statements for further details regarding Mount Logan’s debt obligations). There were no such gains in 2026, causing a negative year on year movement. There were also unrealized losses on investments acquired with the TURN portfolio contributing to current period losses, partially offset by realized gains from the sale of other investments acquired with the TURN portfolio.
Current wording
Net gains from investment activities decreased by $3.0 million into net losses, primarily due to unrealized gains recognized in 2025 on the seller note issued in relation to the Capitala acquisition, which was repaid at its final repayment amount of $0.1 million on October 31, 2025 (refer to Note 12. Debt obligations of the Condensed Consolidated Financial Statements for further details regarding Mount Logan’s debt obligations). There were no such gains in 2026, causing a negative year on year movement. There were also unrealized losses on equity investments contributing to current period losses, compared to unrealized gains on equity investments in 2025.
Previous wording
The decrease in total investment and other income was partially offset by an increase in dividend and interest income, largely driven by bank interest in line with the increase in cash balances.
Current wording
Interest income increased $0.1 million due to higher bank interest in line with the increase in cash balances.
Previous wording
Revenues were $8.2 million in 2026, a decrease of $3.0 million from $11.2 million in 2025. The decrease was primarily driven by decreases in net gains (losses) from investment activities, net revenue of consolidated VIEs, product charges, and net premiums. These decreases were partially offset by increases in net investment income and net investment income (loss) on funds withheld.
Current wording
Revenues were $14.7 million in 2026, a decrease of $10.4 million from $25.0 million in 2025. The decrease was primarily driven by decreases in net realized and change in unrealized gains (losses) from investment activities, net revenues of consolidated VIEs, product charges, and net premiums. These decreases were partially offset by increases in net investment income (loss) on funds withheld and net investment income.
Previous wording
Net investment income (loss) on funds withheld was a gain of $0.6 million in 2026, an increase of $6.4 million from a loss of ($5.8) million in 2025. This increase was primarily driven by higher unrealized and realized losses on funds withheld assets, and lower income earned on those assets, partially offset by lower management & incentive fees in 2026 compared to 2025.
Current wording
Net investment income (loss) on funds withheld was a loss of ($6.3) million in 2026, an increase of $6.3 million from a loss of ($12.6) million in 2025. This increase was primarily driven by overall decrease in the income attributable to funds withheld assets in 2026.
Previous wording
Net investment income was $16.7 million in 2026, an increase of $1.7 million from $15.0 million in 2025, primarily driven by lower management and incentive fees in 2026 compared to 2025 on funds withheld assets under Modco arrangement with Nichol.
Current wording
Net investment income was $31.9 million in 2026, an increase of $0.3 million from $31.6 million in 2025, primarily driven by lower management and incentive fees in 2026 compared to 2025 on funds withheld assets under the Modco arrangement with Nichol.
Previous wording
Expenses were $7.0 million in 2026, a decrease of $3.4 million from $10.4 million in 2025. The decrease was driven by a decrease in net policy benefit and claims. This decrease was partially offset by increases in general, administrative & other expenses, interest sensitive contract benefits, and DAC amortization.
Current wording
Expenses were $11.6 million in 2026, a decrease of $6.6 million from $18.2 million in 2025. The decrease was primarily driven by a decrease in net policy benefit and claims. This decrease was partially offset by increases in general, administrative & other expenses and interest sensitive contract benefits.
Previous wording
Net policy benefits and claims were $(2.6) million in 2026, a decrease of $4.4 million from $1.8 million in 2025, primarily due to a significant unfavorable experience adjustment in LTC business in 2025 compared to 2026.
Current wording
Net policy benefits and claims were $(6.9) million in 2026, a decrease of $7.6 million from $0.7 million in 2025, primarily driven by a favorable assumption update of $4.2 million, partially offset by an unfavorable experience adjustment of 2.3 million in the LTC business in 2026 while 2025 observed an unfavorable experience adjustment of $5.8 million.
Previous wording
Interest sensitive contract benefits were $4.3 million in 2026, an increase of $0.5 million from $3.8 million in 2025, primarily driven by interest accretion on the MYGA block assumed from NSG in the second quarter of 2025.
Current wording
Interest sensitive contract benefits were $8.5 million in 2026, an increase of $0.7 million from $7.8 million in 2025, primarily driven by interest accretion on the MYGA block assumed from NSG in the second quarter of 2025.
Previous wording
FRE was $1.2 million in 2026, a decrease of $1.0 million compared to $2.3 million in 2025. This decrease was primarily attributable to the decline in management fees and increase in administration and servicing fees as well as general, administrative and other costs.
Current wording
FRE was $2.6 million in 2026, a decrease of $1.9 million compared to $4.5 million in 2025. This decrease was primarily attributable to the decline in management fees.
Previous wording
Management fees decreased by $1.0 million primarily due to the merging of Logan Ridge into Portman Ridge on July 15, 2025, and the decrease in OCIF fees from one-time out of period fee reimbursements in 2025. The existing Logan Ridge IMA was terminated and therefore, the Company’s management fee stream from Logan Ridge ceased. Other non-core fee streams also continued to decline as funds wind-down and CLOs run-off in their harvest period. The decrease in these fees were partially offset by the increase in Ability and Nichol (previously known as Vista) management fees from the growth in AUM under these IMAs.
Current wording
Management fees decreased $2.1 million primarily due to the merging of Logan Ridge into Portman Ridge on July 15, 2025, and the decrease in OCIF fees from one-time out of period fee reimbursements received in 2025. The existing Logan Ridge IMA was terminated and therefore, the Company’s management fee stream from Logan Ridge ceased. Other non-core fee streams also continued to decline as funds wind-down and CLOs run-off in their harvest period. The decrease in these fees were partially offset by the increase in Ability and Nichol (previously known as Vista) management fees from the growth in AUM under these IMAs.
Previous wording
Other fee-related income increased by $0.2 million from the Profit-Sharing Agreement entered into in July 2025 between Mount Logan and the owner of SCIM. This fee represents 16.03% of the distributions received by the parent entity of SCIM, which is effectively the Company’s net incremental share in BCIC’s management and incentive fees.
Current wording
Other fee-related income increased $0.6 million from the new Profit-Sharing Agreement entered into in July 2025 between Mount Logan and the owner of SCIM. This fee represents 16.03% of the distributions received by the parent entity of SCIM, which is effectively the Company’s net incremental share in BCIC’s management and incentive fees.
Previous wording
(2)Mount Logan owns a 24.99% interest in SCIM, which is the manager of BCP Investment Corporation (“BCIC”). Under the Profit-Sharing Agreement with BCPSC, the majority owner of SCIM, Mount Logan receives 16.03% of their SCIM distribution. BCIC is the new merged entity of Portman Ridge and Logan Ridge, which closed on July 15, 2025. Prior to Logan Ridge merging into Portman, ML Management was the manager of Logan Ridge.
Current wording
(2)Mount Logan owns a 24.99% interest in SCIM, which is the manager of BCIC. Under the Profit-Sharing Agreement with BCPSC, the majority owner of SCIM, Mount Logan receives 16.03% of their SCIM distribution. BCIC is the new merged entity of Portman Ridge and Logan Ridge, which closed on July 15, 2025. Prior to Logan Ridge merging into Portman, ML Management was the manager of Logan Ridge.
Previous wording
Total AUM was $2.1 billion at March 31, 2026, a $21 million increase from December 31, 2025. The increase was driven by growth in Ability’s AUM, primarily reflecting the continued ramp-up of the Modco arrangement with Nichol, which Mount Logan now manages completely. The total increase in AUM was offset by decreases in AUM across the BDCs, CLOs, Interval funds, Ovation funds, and small closed end private funds. BDC assets decreased due to distributions and repurchase of common stock. ACIF AUM decreased due to distributions and realized losses, while OCIF AUM decreased due to a reduction in unfunded commitments. We expect CLO assets will continue to decline given both are in post reinvestment period and continue to harvest their assets. We also expect Ovation funds’ AUM will also continue to decline pursuant to their wind down. The AUM ML Management sub-advises decreased due to redemptions.
Current wording
Total AUM was $2.0 billion at June 30, 2026, a $90 million decrease from December 31, 2025. The decrease was driven by decreases in AUM across the BDCs, CLOs, Interval funds, Ovation funds, and small closed end private funds. BDC assets decreased due to repayments on borrowings, distributions, and repurchase of common stock. ACIF and OCIF AUM decreased due to distributions and realized and unrealized losses. We expect CLO assets will continue to decline given both are in post reinvestment period and continue to harvest their assets. We also expect Ovation funds’ AUM will also continue to decline pursuant to their wind down. The AUM ML Management sub-advises decreased due to redemptions. These decreases in AUM were partially offset by the increase in Ability AUM primarily reflecting the continued ramp-up of the Modco arrangement with Nichol, which Mount Logan now manages completely as of March 2026.
Previous wording
Cost of funds percent represents the percent of cost of funds over average net invested assets. Cost of funds were higher in 2026 compared to 2025 primarily driven by increase in interest sensitive contract benefits and DAC amortization from the assumption of the NSG MYGA block in the second quarter of 2025.
Current wording
Cost of funds percent represents the percent of cost of funds over average net invested assets. Cost of funds were higher in 2026 compared to 2025 primarily driven by an increase in interest sensitive contract benefits from the assumption of the NSG MYGA block in the second quarter of 2025, partially offset by lower DAC amortization due to lower early surrenders related to MYGA policies.
Previous wording
SRE was$2.0 million in 2026, an increase of$2.0 million, compared to less than $0.1 million in 2025. The increase in SRE was primarily driven by lower cost of funds, partially offset by lower net investment income and realized gains (losses) and higher general, administrative and other expenses.
Current wording
SRE was$4.9 million in 2026, an increase of$5.0 million, compared to less than $0.1 million in 2025. The increase in SRE was primarily driven by lower cost of funds, lower general, administrative and other expenses including compensation and benefits, partially offset by lower net investment income and realized gains (losses).
Previous wording
Net investment spread was 0.17% in 2026, a decrease of 31 basis points compared to 0.48% in 2025, primarily driven by a higher average net invested asset balance and lower net investment income and realized gain or (loss) and higher cost of funds in 2026 compared to 2025.
Current wording
Net investment spread was 0.21% in 2026, a decrease of 36 basis points compared to 0.57% in 2025, primarily driven by a higher average net invested asset balance, lower net investment income and realized gain or (loss), and higher cost of funds in 2026 compared to 2025.
Showing the first 40 of 57 pairs. Open the source sections for the rest.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
Investment related gains (losses) primarily consist of (i) realized gains and losses on sales of investments, (ii) unrealized gains and losses on equity securities and investments, (iii) changes in the provision for credit losses, and (iv) minor foreign currency related gains and losses on Canadian payments.
Current report — wording carried from elsewhere
Transaction costs decreased $2.8 million in 2026 given the 2025 transaction costs were related to Mount Logan’s merger with TURN, which closed in the third quarter of 2025. Refer to Note 3. Business combinations of the Condensed Consolidated Financial Statements for further detail. 2026 included no business acquisition costs and a net credit from reversals and refunds of other transaction costs.
Current report — wording carried from elsewhere
Interest and other credit facility expenses increased $0.2 million, as there was a net increase in debt obligations. The increase in debt from the issuance of exchange listed notes in January 2026 and the issuance of additional debenture units in April 2026 more than offset the partial paydown on the MLC US Holdings credit facility in January 2026 (refer to Note 12. Debt obligations of the condensed consolidated financial statements for further detail).
Current report — wording carried from elsewhere
Amortization and impairment of intangible assets decreased $1.7 million in 2026 as the Ovation IMA intangible asset is amortized on a basis that reflects the net asset value decline in the underlying fee-generating funds which are in wind-down. A larger value of assets were liquidated from the funds in 2025 than 2026, and thus amortization expense mirrors this.
Current report — wording carried from elsewhere
Net premiums were ($8.7) million in 2026, a decrease of $0.5 million from ($8.3) million in 2025. The negative net premium reflects ceded premiums exceeding direct and assumed premiums within the LTC business, primarily due to additional ceded premiums paid to transfer a substantial portion of LTC related risk under a reinsurance arrangement. The decrease in net premiums was primarily driven by a decrease of $2.2 million in direct and assumed premiums compared to 2025, partially offset by a decrease of $1.7 million in ceded premium related to the LTC business compared to 2025.
Current report — wording carried from elsewhere
Mount Logan recorded no income tax expense in 2026, a decrease from the income tax expense of less than $0.1 million in 2025. Income tax expense was $nil in 2026 as the $2.1 million statutory tax benefit on the pre-tax loss of $10.1 million was offset primarily by an increase in the valuation allowance of $2.2 million, partially offset by a dividends received deduction of less than $0.1 million, resulting in no net income tax expense or benefit for the period. The provision for income taxes includes federal, state, local and foreign income taxes, resulting in an effective income tax rate of 0.0% and (0.35%) for 2026 and 2025, respectively. For 2026, the most significant reconciling items between the U.S. federal statutory income tax rate of 21.0% and the effective income tax rate was the increase in the valuation allowance against deferred tax assets of $2.2 million. See Note 18. Income taxes to the Condensed Consolidated Financial Statements for further details regarding Mount Logan’s income tax (provision) benefit.
Current report — wording carried from elsewhere
Other fee-related income represents the income earned from the new profit sharing agreement entered into in July 2025 between Mount Logan and the owner of SCIM. This fee represents 16.03% of the distributions received by the parent entity of SCIM via the profit sharing agreement.
Current report — wording carried from elsewhere
Total AUM was $2.0 billion at June 30, 2026, a $0.1 billion decrease from $2.1 billion at March 31, 2026. The decrease is attributable to decreases in AUM across all vehicles. Ability AUM decreased due to cash payments to service claims. BDC AUM decreased due to repayments on borrowings in BCIC. Interval funds AUM decreased due to distributions and realized and unrealized losses. CLO assets will continue to decline given both are in post reinvestment period and continue to harvest their assets. Ovation funds’ AUM will continue to decline pursuant to their wind down. The AUM ML Management sub-advises decreased due to distributions and redemptions.
Current report — wording carried from elsewhere
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 1.45% in 2026, an increase of 1 basis points compared to 1.44% in 2025, primarily driven by lower realized losses from investment activities in 2026, partially offset by higher average net invested assets (including cash on hand) in 2026 compared to 2025.
Current report — wording carried from elsewhere
(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.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Net gains (losses) from investment activities
Previous report — wording carried elsewhere
Management fees decreased $1.6 million primarily due to the merging of Logan Ridge into Portman on July 15, 2025, and the decrease in OCIF fees from one-time out of period fee reimbursements in 2025. The existing Logan Ridge Investment Management Agreement (“IMA”) was terminated upon the Logan Ridge and Portman Ridge merger and therefore, the Company’s management fee stream from Logan Ridge ceased. The decrease in fees was partially offset by the growth in AUM under the Nichol investment management agreement, which commenced towards the end of the first quarter of 2025.
Previous report — wording carried elsewhere
Equity investment earnings increased by $0.1 million due to favorable net income from SCIM, which was primarily driven by the elimination of the legacy cost reimbursement program at SCIM upon the Logan Ridge and Portman
Previous report — wording carried elsewhere
Ridge merger. SCIM was the adviser of Portman Ridge and effective July 15, 2025, upon closing of the merger of Logan Ridge and Portman Ridge, became the advisor to the combined company, renamed BCP Investment Corporation (“BCIC”).
Previous report — wording carried elsewhere
The ability to pay dividends is limited by applicable laws and regulations of the jurisdiction where Ability is domiciled, as well as agreement(s) entered into with regulators. These laws and regulations require, among other things,