Mount Logan-managed fund signed a definitive agreement during first quarter 2026 to acquire $100+ million of assets from Yieldstreet Alternative Income Fund, which is expected to increase annual FRE1 by at least $2.8 million2
Entered an agreement during the first quarter 2026 to manage $125 million of additional assets, which is expected to increase FRE by approximately $0.5 million in 2026 and in excess of $1.0 million in 2027
Declared quarterly distribution of $0.03 per common share in the first quarter of 2026, the second shareholder distribution for Mount Logan as a US registrant
Mount Logan to host a conference call on Thursday, March 19, 2026, at 12:00 PM Eastern Time to discuss full year and fourth quarter 2025 results, and first quarter 2026 updates
NEW YORK, March 19, 2026 (GLOBE NEWSWIRE) -- Mount Logan Capital Inc. (NASDAQ:MLCI) ("Mount Logan" or the "Company") announced today its financial results for the fourth quarter and full year ended December 31, 2025.
Management Commentary
Ted Goldthorpe, Chief Executive Officer and Chairman of Mount Logan stated, "2025 was a transformational year for Mount Logan following the completion of our business combination with 180 Degree Capital. The transaction strengthened our capital base and positioned the Company to invest in the continued development of our platform. For the full year, our asset management business generated a stable base of fee-related earnings, which we expect to strengthen further through recently announced initiatives, including the Yieldstreet asset acquisition by Mount Logan's managed fund SOFIX, and continued growth in our managed strategies. Within our insurance platform, spread-related earnings were breakeven for the year as we continued to invest in the team and capabilities needed to support future growth, while rotating out of legacy, underperforming insurance assets. Subsequent to year-end, we have taken several steps to enhance shareholder value and increase financial flexibility, including completion of a $15 million tender offer, the issuance of $40 million senior notes, and executing strategic AUM growth initiatives, both organically and inorganically. We believe Mount Logan is well positioned to remain opportunistic in deploying capital across diverse credit strategies as we seek to grow recurring earnings over time."
Full Year Milestones3
Total revenue for the Asset Management segment, including investment and other income, was $21.5 million for the year, an increase of $6.5 million, or 44% compared to 2024. The increase was driven primarily by the $4.5 million gain recognized on the acquisition of 180 Degree Capital, as well as a $1.4 million unrealized gain on the minority stake position Mount Logan has in Runway Growth Capital LLC. Asset Management revenues exclude $6.0 million of intercompany management fees earned from managing the assets of Ability Insurance Company ("Ability"), which increased $0.4 million, or approximately 7%, from $5.6 million in 2024.
Fee-Related Earnings ("FRE") for the Asset Management segment were $8.5 million for the year, down $0.6 million compared to $9.1 million in 2024. This decrease primarily reflects voluntary fee waivers of $0.5 million. Additionally, Mount Logan underwent a shift in key fee streams as certain funds continued their wind down during 2025, including the Ovation funds and Mount Logan's managed CLOs. Following the merger of Logan Ridge into Portman Ridge, Mount Logan introduced a new recurring revenue stream from a profit-sharing agreement with the majority owner of Sierra Crest Investment Management4, which management anticipates will be fully reflected in 2026 financial performance. For the full-year, Mount Logan earned $0.8 million of transaction and advisory fees, reflecting a new organic initiative within the asset management segment.
Total net investment income for the Insurance Solutions segment including net investment income of consolidated variable interest entities ("VIEs") was $79.0 million for the year, a decrease of $13.8 million, or 15%, compared to 2024. The decrease was primarily driven by a lower interest rate environment, higher management and incentive fees associated with funds withheld assets under modified coinsurance ("Modco") arrangement with Vista Life and Casualty Reinsurance Company ("Vista"), and the write off of accrued interest on certain defaulted mortgages amounting to $2.3 million. Excluding the funds withheld assets under reinsurance contracts and Modco arrangements, the Insurance Solutions segment's net investment income was $55.0 million, a decrease of $4.3 million, or 7%, compared to 2024.
Achieved 6.9%5 yield on the insurance investment portfolio for 2025. Excluding the funds withheld under reinsurance contracts and modified coinsurance, the yield was 7.7%.
Spread-Related Earnings ("SRE")6 for the Insurance Solutions segment was $0.0 million in 2025, compared to $13.7 million in 2024. The decline year-over-year was primarily attributable to the decline in net investment income for the Insurance Solutions segment including VIEs, while general, administrative and other expenses were lower due to lower MYGA-related expenses and cost reductions following continued expense efficiency initiatives, which remain ongoing.
Ability's total assets managed by Mount Logan excluding the funds withheld assets under reinsurance contracts and Modco, were $660.7 million as of December 31, 2025, an increase of $40.6 million from the fourth quarter of 2024. As of December 31, 2025, the Insurance Solutions segment included approximately $1.1 billion in total investment assets, an increase of $36.0 million from the comparative prior year period. During the first quarter of 2025, Mount Logan began managing a portion of Ability's Modco assets with Vista totaling $71.9 million as of December 31, 2025.
Book value of the insurance segment as of December 31, 2025 was $122.1 million, a decrease of $7.7 million, compared to $129.8 million as of December 31, 2024. As of year-end, Mount Logan made a significant investment into Ability to support the flywheel effect of the business.
Fourth Quarter 2025 Highlights
Total revenue for the Asset Management segment including investment and other income was $2.6 million, a decrease of $1.2 million, compared to $3.8 million for the fourth quarter of 2024. The decrease was primarily driven by the termination of the Logan Ridge investment management agreement and wind-down of the Ovation funds. While the Company anticipated the decrease in management fees from these events, Mount Logan entered into new agreements and transactions resulting in new profit-sharing revenue and advisory and transaction fees earned this quarter compared to the comparative period. The new profit-sharing revenue is expected to scale with the growth of BCIC.
FRE for the Asset Management segment were $1.5 million for the quarter, down $0.7 million compared to $2.2 million in fourth quarter 2024.
Total net investment income for the Insurance Solutions segment including net investment income of consolidated VIEs was $18.5 million, a decrease of $5.0 million, or 21%, compared to fourth quarter of 2024. The decrease was primarily driven by a lower interest rate environment and the write off of accrued interest on certain defaulted mortgages. Excluding the funds withheld assets under reinsurance contracts and Modco arrangements, the Insurance Solutions segment's net investment income was $13.5 million, a decrease of $1.5 million, or 10%, compared to fourth quarter of 2024.
SRE for the Insurance Solutions segment was $(1.1) million in fourth quarter 2025, compared to $4.2 million in 2024.
Managed-fund Transaction
Mount Logan–managed Opportunistic Credit Interval Fund ("SOFIX") signed a definitive agreement to acquire $100+ million of assets from Yieldstreet Alternative Income Fund Inc. ("YS AIF") during the first quarter of 2026.
Mount Logan currently estimates, on a full-year basis, the transaction will increase FRE by $2.8 million2 or more, representing a more than 30% increase in Mount Logan's 2025 trailing twelve-month FRE as of December 31, 2025.
Mount Logan's total cost inclusive of its definitive transition services agreement with YS AIF's advisor is expected to make the transaction immediately accretive to Mount Logan.
YS AIF and SOFIX investors gain access to a larger investment vehicle with greater scale, economic efficiency and increased portfolio diversification.
Transaction expected to close in late Q2 or Q3 2026, subject to regulatory and YS AIF shareholder approvals.
Other Subsequent Events
Declared a stockholder quarterly distribution in the amount of $0.03 per share of common stock for the quarter ended December 31, 2025, payable on April 15, 2026 to stockholders of record at the close of business on March 30, 2026. This cash dividend marks the second consecutive quarter of the Company issuing a $0.03 distribution to its stockholders following the closing of the Business Combination.
Closed $40.0 million in aggregate principal amount of senior unsecured notes offering where funds were used to partially repay outstanding indebtedness on the Company's credit facility, with remaining funds available for general corporate purposes.
Closed $15.0 million tender offer to purchase approximately 12% of the Company's common stock issued and outstanding as of February 2, 2026.
Approved a $10.0 million share repurchase program through December 31, 2027, where repurchases may be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions, or by other means in accordance with applicable securities laws and subject to market conditions and other factors.
Selected Financial Highlights
Total capital of the Company was $185.3 million at December 31, 2025, a decrease of $11.9 million as compared to December 31, 2024. Total capital consists of debt obligations and total shareholders' equity.
Consolidated net loss before taxes was $58.5 million for 2025, compared with a loss of $9.8 million for 2024. The year-over-year change primarily reflects one-time costs related to the Business Combination with 180 Degree Capital, the impairment of the Logan Ridge investment management agreement intangible asset, certain legal and consulting fees associated with the previously announced investigation of misconduct by a former employee of ML Management, as well as reimbursements to AIF and its portfolio company in relation to such misconduct, and the goodwill impairment of the legacy LTC product within Insurance Solutions.
Basic earnings (loss) per share ("EPS") was ($7.08) for 2025, an increase in loss per share of $5.38 from ($1.70) for 2024.
Conference Call Details
Mount Logan will hold a conference call to discuss its quarterly results on Thursday, March 19, 2026 at 12:00 p.m. ET. Participants may access the conference call via webcast using this Webcast Link. To participate via telephone, please register in advance using this Registration Link. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial in 10 minutes prior to the start time. A replay of the conference call and webcast will be available on-demand via the Company's investor relations webpage at https://ir.mountlogan.com/ for 12 months.
Results of Operations by Segment
Years Ended December 31,
2025
2024
Change ($)
Change (%)
($ in thousands)
REVENUES
Asset Management
Management fees
$
9,532
$
11,131
$
(1,599
)
(14)%
Incentive fees
1,613
3,198
(1,585
)
(50)%
Advisory and transaction fees, net
798
—
798
NM
Equity investment earning
1,023
680
343
50%
12,966
15,009
(2,043
)
(14)%
Insurance Solutions
Net Premiums
(17,200
)
(15,479
)
(1,721
)
11%
Product charges
1,877
266
1,611
606%
Net investment income
63,423
74,638
(11,215
)
(15)%
Net gains (losses) from investment activities
6,217
(8,211
)
14,428
(176)%
Net revenues of consolidated variable interest entities
13,166
15,082
(1,916
)
(13)%
Net investment income (loss) on funds withheld
(27,192
)
(32,056
)
4,864
(15)%
Other income
309
541
(232
)
(43)%
40,600
34,781
5,819
17%
Total revenues
53,566
49,790
3,776
8%
EXPENSES
Asset Management
Administration and servicing fees
7,802
5,895
1,907
32%
Transaction costs
9,501
2,174
7,327
337%
Compensation and benefits
8,392
8,412
(20
)
—%
Amortization and impairment of intangible assets
14,978
3,582
11,396
318%
Interest and other credit facility expenses
7,810
7,001
809
12%
General, administrative and other
13,138
6,480
6,658
103%
61,621
33,544
28,077
84%
Insurance Solutions
Net policy benefit and claims (remeasurement gain on policy liabilities of $9,872 and $16,237 for the year ended December 31, 2025 and 2024, respectively)
(2,222
)
(10,091
)
7,869
(78)%
Interest sensitive contract benefits
16,076
14,972
1,104
7%
Amortization of deferred acquisition costs
3,126
2,175
951
44%
Compensation and benefits
543
1,367
(824
)
(60)%
Interest expense
1,541
1,313
228
17%
General, administrative and other (including related party amounts of $6,972 and $7,169 for the year ended December 31, 2025 and 2024, respectively)
14,394
16,276
(1,882
)
(12)%
Goodwill impairment
25,504
—
25,504
NM
58,962
26,012
32,950
127%
Total expenses
120,583
59,556
61,027
102%
Investment and other income (Loss) - Asset Management
Net gains (losses) from investment activities
2,021
(1,531
)
3,552
(232)%
Dividend income
98
356
(258
)
(72)%
Interest income
1,278
1,091
187
17%
Other income (loss), net
702
69
633
917%
Gain on acquisition
4,457
—
4,457
NM
Total investment and other income (loss)
8,556
(15
)
8,571
NM
Income (loss) before taxes
(58,461
)
(9,781
)
(48,680
)
498%
Income tax (expense) benefit, Asset Management
(2,386
)
(606
)
(1,780
