Mount Logan Capital Inc. 8.00% Notes Due 2031

Mount Logan Capital Inc. (MLCI) reported a net loss of $60.8 million for FY 2025, widening significantly from a $10.4 million loss in FY 2024, primarily due to elevated expenses totaling $120.6 million, up 102% YoY. Key drivers included a $25.5 million goodwill impairment in Insurance Solutions, $9.5 million in transaction costs related to the business combination, and $15.0 million in amortization and impairment of intangible assets in Asset Management. Revenues increased 8% YoY to $53.6 million, supported by Insurance Solutions growth to $40.6 million (+17% YoY) from net investment income of $79.0 million and gains from investments, offset by Asset Management decline to $13.0 million (-14% YoY) amid fund wind-downs. Balance sheet strengthened with total assets at $1.60 billion, equity at $91.0 million, and AUM exceeding $2.1 billion as of December 31, 2025. Cash position improved with net cash increase of $42.0 million. Forward-looking, the company emphasizes scaling private credit AUM for Fee Related Earnings, expanding MYGA reinsurance for Spread Related Earnings, and leveraging the Nasdaq listing post-business combination for growth, amid risks from interest rates and competition.

Key Takeaways