Strong quarter for Insurance Solutions with SRE of $2.0 million, up $2.0 million year-over-year, and $3.1 million as compared to fourth quarter 2025
Asset Management FRE declined to $1.2 million, but earnings quality improved significantly. FRE down $1.0 million year-over-year, and down $0.3 million as compared to fourth quarter 2025
During the first quarter, Mount Logan-managed Opportunistic Credit Interval Fund (SOFIX) entered an agreement to acquire $100+ million of assets for Yieldstreet Alternative Income Fund. Currently estimated to close during the third quarter of 2026
Added $120 million of managed assets from an existing relationship effective March 2026, 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 second quarter of 2026, the third consecutive shareholder distribution for Mount Logan as a US registrant
Mount Logan to host an earnings conference call and webcast on Friday, May 15, 2026, at 1:00 PM ET
NEW YORK, May 14, 2026 (GLOBE NEWSWIRE) -- Mount Logan Capital Inc. (NASDAQ:MLCI) ("Mount Logan" or the "Company") announced today its financial results for the first quarter ended March 31, 2026.
Management Commentary
Ted Goldthorpe, Chief Executive Officer and Chairman of Mount Logan stated, "The first quarter of 2026 reflected the successful execution against our near-term strategic priorities, as we continued to invest across our platform, strengthen our leadership team, acquire and expand core recurring revenue streams, and improve profitability. During the quarter, we saw Spread Related Earnings return to a positive contributor to segment income, while our Fee Related Earnings quality increased significantly as compared to prior quarter. Collectively, Mount Logan's first quarter demonstrates the depth and dynamism of our team and platform, as well as our ability to simultaneously pursue growth, optimize our capital structure, and return capital to shareholders. We believe Mount Logan is well positioned to capture improved operating leverage, higher profitability, and long-term shareholder value as these initiatives take full effect over the balance of 2026."
First Quarter Highlights2
Total revenue for the Asset Management segment was $2.5 million for the quarter, a decrease of $1.4 million, or 36% compared to the first quarter of 2025, primarily driven by non-recurring items including the termination of the Logan Ridge investment management agreement in July 20253 and one-time out of period SOFIX management fee reimbursements recorded in the first quarter of 2025. Asset Management revenues exclude $1.8 million of intercompany management fees earned from managing the assets of Ability Insurance Company ("Ability"), which increased $0.7 million, or approximately 7%, from $1.2 million in 2025. Following the merger of Logan Ridge into Portman Ridge, Mount Logan introduced a new recurring revenue stream through a profit-sharing agreement with the majority owner of Sierra Crest Investment Management3.
Fee-Related Earnings ("FRE") for the Asset Management segment were $1.2 million for the first quarter of 2026, down $1.0 million compared to $2.3 million for the first quarter of 2025. This decrease primarily reflects the decrease in management fees discussed above.
Total net investment income for the Insurance Solutions segment including net investment income of consolidated variable interest entities ("VIEs") was $20.2 million for the first quarter of 2026, an increase of $1.4 million, or 7%, compared to first quarter of 2025. Excluding the funds withheld assets under reinsurance contracts and modified coinsurance ("Modco") arrangements, the Insurance Solutions segment's net investment income was $14.6 million, an increase of $0.3 million, or 2%, compared to the first quarter of 2025.
Achieved 6.8%4 yield on the insurance investment portfolio for the first quarter of 2026. Excluding the funds withheld under reinsurance contracts and modified coinsurance, the yield was 7.5%.
Spread-Related Earnings ("SRE") for the Insurance Solutions segment was $2.0 million for the first quarter of 2026, compared to less than $0.1 million for the first quarter of 2025.
Ability's total assets managed by Mount Logan excluding the funds withheld assets under reinsurance contracts and Modco, were $699.4 million as of March 31, 2026, an increase of $105.7 million from the first quarter of 2025. As of March 31, 2026, the Insurance Solutions segment held approximately $1.1 billion of total investment assets, an increase of $86.5 million from the first quarter of 2025. Including Modco assets, Mount Logan managed total assets of $891.2 million as of March 31, 2026, an increase of $249.0 million compared to first quarter of 2025.
Book value of the insurance segment as of March 31, 2026 was $120.1 million, a decrease of $2.0 million, compared to $122.1 million as of December 31, 2025.
Strategic DevelopmentsDuring the first quarter of 2026, the Company completed the following strategic initiatives:
Completed Opportunistic Debt Re-financing: On January 26, 2026, Mount Logan completed a $40.0 million in aggregate principal amount 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 Tender Offer: On February 6, 2026, Mount Logan closed a $15.0 million tender offer to purchase approximately 12% of the Company's common stock issued and outstanding as of February 2, 2026.
Announced New Share Repurchase Program: On February 23, 2026, Mount Logan announced that its Board of Directors authorized 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.
Yieldstreet Managed-Fund Transaction
As previously announced, 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 million5 or more.
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 currently expected to close by third quarter 2026, subject to regulatory and YS AIF shareholder approvals.
Subsequent Events
Declared a stockholder quarterly distribution in the amount of $0.03 per share of common stock for the quarter ended March 31, 2026, payable on June 10, 2026 to stockholders of record at the close of business on May 26, 2026. This cash dividend marks the third consecutive quarter of the Company issuing a $0.03 distribution to its stockholders following the closing of the Business Combination.
Selected Financial Highlights
Total capital of the Company was $177.2 million at March 31, 2026, a decrease of $8.1 million as compared to December 31, 2025. Total capital consists of debt obligations and total shareholders' equity.
Consolidated net loss before taxes was $6.0 million for the first quarter of 2026, compared with a loss of $6.7 million for the first quarter of 2025. Net loss position improved as expenses declined.
Consolidated basic loss per share ("EPS") was $0.51 for the first quarter of 2026, compared to $1.02 for the first quarter of 2025.
Conference Call and Webcast DetailsMount Logan will hold a conference call to discuss its quarterly results on Friday, May 15, 2026 at 1:00 p.m. ET. Participants may access the conference call via webcast using this Webcast Link. To participate via telephone, please register in advance using this Registration Link. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial in 10 minutes prior to the start time. A replay of the conference call and webcast will be available on-demand via the Company's investor relations webpage at https://ir.mountlogan.com/ for 12 months.
Results of Operations by Segment
Three months ended March 31,
2026
2025
Change ($)
Change (%)
REVENUES
Asset Management
Management fees
$
1,639
$
3,240
$
(1,601
)
-49
%
Incentive fees
394
299
95
32
%
Advisory and transaction fees, net
66
—
66
NM
Equity investment earning
362
282
80
28
%
2,461
3,821
(1,360
)
-36
%
Insurance Solutions
Net Premiums
(4,244
)
(4,013
)
(231
)
6
%
Product charges
118
860
(742
)
-86
%
Net investment income
16,676
14,951
1,725
12
%
Net gains (losses) from investment activities
(5,014
)
1,472
(6,486
)
-441
%
Net revenues of consolidated variable interest entities
(133
)
3,633
(3,766
)
-104
%
Net investment income (loss) on funds withheld
614
(5,750
)
6,364
-111
%
Other income
169
76
93
122
%
8,186
11,229
(3,043
)
-27
%
Total revenues
$
10,647
$
15,050
$
(4,403
)
-29
%
EXPENSES
Asset Management
Administration and servicing fees
3,639
1,237
2,402
194
%
Transaction costs
82
4,545
(4,463
)
-98
%
Compensation and benefits
211
2,380
(2,169
)
-91
%
Amortization and impairment of intangible assets
444
910
(466
)
-51
%
Interest and other credit facility expenses
2,005
1,946
59
3
%
General, administrative and other
3,008
1,723
1,285
75
%
9,389
12,741
(3,352
)
-26
%
Insurance Solutions
Net policy benefit and claims (remeasurement gain on policy liabilities of $4,459 and $81 for the three months ended March 31, 2026 and 2025, respectively)
(2,635
)
1,793
(4,428
)
-247
%
Interest sensitive contract benefits
4,289
3,818
471
12
%
Amortization of deferred acquisition costs
708
555
153
28
%
Compensation and benefits
—
244
(244
)
-100
%
Interest expense
400
328
72
22
%
General, administrative and other (including related party amounts of $1,672 and $1,732 for the three months ended March 31, 2026 and 2025, respectively)
4,261
3,686
575
16
%
7,023
10,424
(3,401
)
-33
%
Total expenses
$
16,412
$
23,165
$
(6,753
)
-29
%
Investment and other income (Loss) - Asset Management
Net gains (losses) from investment activities
(351
)
841
(1,192
)
-142
%
Dividend income
60
38
22
58
%
Interest income
384
268
116
43
%
Other income (loss), net
174
299
(125
)
-42
%
Loss on extinguishment of debt
(472
)
—
(472
)
NM
Total investment and other income (loss)
(205
)
1,446
(1,651
)
-114
%
Income (loss) before taxes
$
(5,970
)
$
(6,669
)
$
