Mount Logan Capital Inc.

Previous wording

Mount Logan, together with its consolidated subsidiaries is an alternative asset management and insurance solutions company. Mount Logan manages its business through two business segments: Asset Management and Insurance Solutions. Its Asset Management segment is focused on investing in and actively managing credit investment opportunities in North America through its wholly-owned subsidiary Mount Logan Management LLC (“ML Management”). The Insurance Solutions segment is conducted by Ability Insurance Company (“Ability”), a Nebraska domiciled insurer that specializes in reinsuring annuity products for the increasing number of individuals seeking to fund retirement needs. Ability also holds a run-off book of long-term care policies. As of June 30, 2026, Mount Logan no longer had any direct full time employees.

Current wording

Mount Logan, together with its consolidated subsidiaries is an alternative asset management and insurance solutions company. Mount Logan manages its business through two business segments: Asset Management and Insurance Solutions. Its Asset Management segment is focused on investing in and actively managing credit investment opportunities in North America through its wholly-owned subsidiary Mount Logan Management LLC (“ML Management”). The Insurance Solutions segment is conducted by Ability Insurance Company (“Ability”), a Nebraska domiciled insurer that specializes in reinsuring annuity products for the increasing number of individuals seeking to fund retirement needs. Ability also holds a run-off book of long-term care policies. As of October 1, 2025 and through September 30, 2026, Mount Logan has no direct full time employees.

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 June 30, 2026, Mount Logan had a total AUM of $2.0 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 September 30, 2026, Mount Logan had a total AUM of $1.8 billion.

Previous 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.

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. SCIM is majority owned by BCPA.

Previous wording

Ability uses ceded reinsurance contracts in the normal course of business to manage its risk exposure. For each of its reinsurance agreements, cessions under reinsurance agreements do not discharge Ability’s obligations as the primary insurer. Reinsurance assets represent the benefit derived from reinsurance agreements in force at the reporting date, considering the financial condition of the reinsurer. Amounts recoverable from reinsurers are estimated in accordance with the terms of the relevant reinsurance contract and historical reinsurance recovery information. Amounts recoverable from reinsurers are based on what Ability believes are reasonable estimates and the balance is reported as an asset in the

Current wording

Ability uses ceded reinsurance contracts in the normal course of business to manage its risk exposure. For each of its reinsurance agreements, cessions under reinsurance agreements do not discharge Ability’s obligations as the primary insurer. Reinsurance assets represent the benefit derived from reinsurance agreements in force at the reporting date, considering the financial condition of the reinsurer. Amounts recoverable from reinsurers are estimated in accordance with the terms of the relevant reinsurance contract and historical reinsurance recovery information. Amounts recoverable from reinsurers are based on what Ability believes are reasonable estimates and the balance is reported as an asset in the Insurance section of the Condensed Consolidated Statements of Financial Position. However, the ultimate amount of the reinsurance recoverable is not known until all claims are settled.

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 3.5% 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.

Current wording

U.S. inflation increased to 3.7% as of September 30, 2026, and the Federal Reserve maintained the federal funds rate target range at 3.75%–4% throughout the third quarter. Continued inflation or interest rate volatility 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 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.

Current wording

Both medium-term and long-term rates increased between the second and third quarter of 2026, with the U.S. 10-year Treasury yield at 4.93% as of September 30, 2026 compared to 4.44% as of June 30, 2026. Short term rates decreased in the same period, with the 3-month average U.S. Secured Overnight Financing Rate (“SOFR”) at 3.68% as of September 30, 2026 compared to 3.73% as of June 30, 2026.

Previous 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.

Current wording

As of September 30, 2026, Ability’s net invested asset portfolio included $330.6 million of floating rate investments, or 50% 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

(4)ML Management is the adviser to OCIF and earns management and incentive fees directly from this fund. Base management fees are earned at 1.25% of gross assets. Incentive fees are realized when the fund reaches a hurdle rate of return each quarter, based on the pre-incentive fee net investment income. When OCIF’s pre-incentive net investment income – i.e. interest income, dividend income and any other income accrued during the calendar quarter, less OCIF’s operating expenses for the quarter – exceeds the hurdle rate of return on OCIF’s adjusted capital of 1.5% (or 6% annualized), ML Management earns an incentive fee at 15% of the pre-incentive fee net investment income. All incentive fees recognized are considered realized as they are calculated and payable quarterly in arrears based on the pre-incentive fee net investment income for the immediately preceding calendar quarter. All recorded incentive fees have been subsequently received in cash. Separately, Mount Logan receives the economics of ACIF, which is an interval fund advised by SCIM, via a servicing agreement with SCIM over ACIF. The SCIM servicing fee over ACIF is excluded.

Current wording

(4)ML Management is the adviser to OCIF and earns management and incentive fees directly from this fund. Base management fees are earned at 1.25% of gross assets. Incentive fees are realized when the fund reaches a hurdle rate of return each quarter, based on the pre-incentive fee net investment income. When OCIF’s pre-incentive net investment income – i.e. interest income, dividend income and any other income accrued during the calendar quarter, less OCIF’s operating expenses for the quarter – exceeds the hurdle rate of return on OCIF’s adjusted capital of 1.5% (or 6% annualized), ML Management earns an incentive fee at 15% of the pre-incentive fee net investment income. All incentive fees recognized are considered realized as they are calculated and payable quarterly in arrears based on the pre-incentive fee net investment income for the immediately preceding calendar quarter. All recorded incentive fees have been subsequently received in cash.

Previous wording

(6)Consists of several small, closed end private funds which are sub-advised by ML Management at 1% of net assets, as well as management fees earned from a portfolio of Nichol International Reinsurance (S.A.C), Ltd. (Nichol) (formerly known as Vista Life and Casualty Reinsurance Company) assets to which ML Management was appointed as the investment manager of, effective March 2025, at a rate of 1% on the average statutory book value of investments under management. Only fees which are crystallized and not subject to reversal are recognized and included.

Current wording

(6)Consists of several small, closed end private funds which are sub-advised by ML Management at 1% of net assets, as well as management fees earned from a portfolio of Nichol International Reinsurance (S.A.C), Ltd. (Nichol) (formerly known as Vista Life and Casualty Reinsurance Company) assets to which ML Management was appointed as the investment manager of, effective March 2025, at a rate of 1% on the average statutory book value of investments under management. Only fees which are crystallized and not subject to reversal are recognized and included. This also includes sub-advisory fees earned by ML Management from Yieldstreet Alternative Income Fund pursuant to the sub-advisory agreement entered into between ML Management and Willow Asset Management LLC that became effective on August 24, 2026.

Previous wording

Net premiums for long-duration contracts, including products with fixed and guaranteed premiums and benefits, are recognized as revenue when due from policyholders. Insurance premiums are reported net of reinsurance ceded premiums. The net premiums for long duration contracts are negative as reinsurance ceded premiums exceeds direct and assumed premiums, primarily due to additional ceded premiums paid to transfer a substantial portion of risk under a reinsurance arrangement.

Current wording

The net premiums for long duration contracts are negative as reinsurance ceded premiums exceeds direct and assumed premiums, primarily due to additional ceded premiums paid to transfer a substantial portion of risk under a reinsurance arrangement.

Previous 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.

Current wording

Mount Logan had no income tax expense in the third quarter of 2026 compared to $2.3 million income tax expense in the third quarter of 2025. Mount Logan’s income tax expense decreased in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. For the nine months ended September 30, 2026, Mount Logan had no income tax expense while for the nine months ended September 30, 2025, Mount Logan incurred an income tax expense of $2.3 million. Income tax expense was $nil for the nine months ended September 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 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:

Current wording

Below is a discussion of Mount Logan’s Condensed Consolidated Statements of Operations for the three and nine months ended September 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

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 wording

Management fees remained flat year over year. The decrease in fees stemmed from Logan Ridge due to the termination of the Logan Ridge investment management agreement ("IMA") following the July 2025 merger of Logan Ridge and Portman Ridge, as well as lower fees from Ovation funds, First Trust, and the CLO’s from continued wind-down or runoff of underlying vehicles. These decreases were offset by increased OCIF and Vista management fees as well as a third quarter 2026 addition of Yieldstreet fees.

Previous wording

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 wording

Expenses were $9.4 million in 2026, a decrease of $12.7 million from $22.1 million in 2025. The decrease was primarily driven by lower transaction costs, compensation and benefits costs, and amortization of intangible assets, partially offset by higher administration and servicing fees and interest and credit facility expenses.

Previous wording

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 wording

Transaction costs decreased $3.2 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 and Asset Acquisitions 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.

Previous 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.

Current wording

Amortization and impairment of intangible assets decreased $7.8 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 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 wording

Compensation and benefits costs decreased $3.6 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.

Previous 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.

Current wording

Compensation and benefits decreased $3.6 million while administration and servicing fees increased $2.2 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, $2.1 million of compensation expense was recorded, compared to $0.4 million in 2026 for awards granted under the 2025 Plan. Refer to Note 20. Equity based compensation for further detail.

Previous wording

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 wording

Total investment and other income was a loss of $0.5 million in 2026 compared with income of $6.3 million in 2025. The decrease of $6.9 million was primarily driven by the gain on TURN acquisition in 2025 and movements on assets and liabilities held at fair value.

Previous wording

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 wording

Net investment income (loss) on funds withheld were a gain of $2.8 million in 2026, which reflects an increase of $13.4 million from a loss of ($10.7) million in 2025. This decrease was primarily driven by higher unrealized losses on the funds withheld assets due to higher yields.

Previous 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.

Current wording

Net premiums were ($4.4) million in 2026, an increase of $0.1 million from ($4.5) 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 increase in net premiums was primarily driven by a decrease of $1.2 million in ceded premium compared to 2025, partially offset by a decrease of $1.1 million in direct and assumed premium related to the LTC business compared to 2025.

Previous wording

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 wording

Net realized and change in unrealized gains (losses) from investment activities were losses of $8.7 million in 2026, a decrease of $12.5 million from gains of $3.8 million in 2025, primarily driven by higher unrealized losses resulting from interest rate movements as well as higher realized losses on the disposal of assets. This decrease was partially offset by the release of credit loss reserve following the disposal of non-performing assets.

Previous wording

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 wording

Net revenues of consolidated VIEs were $1.7 million in 2026, a decrease of $1.1 million from $2.8 million in 2025, primarily driven by lower net investment income and higher realized losses in 2026.

Previous 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.

Current wording

Product charges were $0.1 million in 2026, which reflects a decrease of $0.1 million from $0.2 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

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 wording

DAC amortization was $1.4 million in 2026, an increase of $0.5 million from $0.9 million in 2025, primarily due to write down of DAC related to the SSL block recapture. Partially offsetting this increase was lower early surrenders on existing MYGA policies compared to 2025. The higher level of surrenders in 2025 resulted in accelerated amortization of DAC associated with surrendered policies.

Previous 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.

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 $0.8 million statutory tax benefit on the pre-tax loss of $3.7 million was offset primarily by an increase in the valuation allowance of $2.3 million, partially offset by a dividends received deduction of less than $0.1 million and nondeductible differences of $1.4 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 (20.72)% 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 $1.4 million and the increase in the valuation allowance against deferred tax assets of $2.3 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

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 wording

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 an increase in fees from Vista under the Nichol IMA as the managed asset base increased after the mandate signed in March 2026 and added fees from the Yieldstreet sub-advisory agreement entered into and made effective in 2026.

Previous wording

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 wording

Incentive fees decreased by $0.4 million, as lower incentive fee waivers in 2026 more than offset lower gross incentive fees. Gross incentive fees actually decreased due to third quarter 2026 OCIF incentive hurdles not being met.

Previous wording

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 wording

Expenses were $27.0 million in 2026, a decrease of $19.4 million from $46.4 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, administration and servicing fees, and interest and other credit facility expenses.

Previous 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.

Current wording

Transaction costs decreased $10.4 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 and Asset Acquisitions of the Condensed Consolidated Financial Statements for further details.

Previous wording

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 wording

Amortization and impairment of intangible assets decreased $9.4 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. The decrease in amortization and impairment of intangible assets is also driven by less impairment losses on the intangible asset associated with Logan Ridge during 2025, which is now the BCIC profit share. The BCIC profit share did not incur any impairment losses in 2026.

Previous wording

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 wording

Compensation and benefits decreased $7.4 million while administration and servicing fees increased $6.1 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.

Previous wording

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 wording

General, administrative and other expenses increased $1.3 million in 2026 primarily due to higher consulting and legal costs, and a one-time stock exchange tier entry listing fee.

Previous 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).

Current wording

Interest and other credit facility expenses increased by $0.5 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 $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.

Current wording

Total investment and other income decreased $9.9 million, primarily due to the gain in relation to the TURN acquisition in 2025, 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 $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.

Current wording

Net gains from investment activities decreased by $5.4 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. In addition, a realized loss of $1.1 million in relation to the derecognition of the SCIM Note and associated CECL allowance in exchange for the BCPL profit share contributed to the decrease in gains on investment activities.

Previous wording

Interest income increased $0.1 million due to higher bank interest in line with the increase in cash balances.

Current wording

Interest income increased $0.2 million due to higher bank interest in line with the increase in cash balances.

Previous 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.

Current wording

Revenues were $25.5 million in 2026, a decrease of $8.2 million from $33.7 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, other income and net investment income.

Previous wording

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.

Current wording

Net realized and change in unrealized gains (losses) from investment activities were losses of $13.2 million in 2026, a decrease of $22.3 million from gains of $9.1 million in 2025. The decrease was primarily driven by higher unrealized losses resulting from interest rates movements and higher realized losses on sale of investments. This decrease was partially offset by the release of credit loss reserve following the disposal of non-performing assets in 2026.

Previous wording

Product charges were $0.3 million in 2026, which reflects a decrease of $1.3 million from $1.6 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.

Current wording

Product charges were $0.4 million in 2026, which reflects a decrease of $1.3 million from $1.8 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.