Mr. Ted Goldthorpe reports

MOUNT LOGAN CAPITAL INC. COMPLETES FIRST STEP OF TRANSACTION WITH OVATION PARTNERS, LP

Mount Logan Capital Inc. has amended the definitive agreement with Ovation Partners LP relating to the previously announced transaction for the management of Ovation's alternative income platform by Mount Logan Management LLC (ML Management), a wholly owned subsidiary of Mount Logan.

Amendment highlights

• Until the final closing of the transaction, Ovation will remain the adviser of the alternative income platform, which is focused on investments in commercial lending, real estate lending, consumer finance and litigation finance.
• Certain employees of Ovation received and accepted offers for full time employment with ML Management effective as of the amendment date (the transferred employees). Remaining employees of Ovation are expected to transition to ML Management upon the final closing of the transaction.
• Until the final closing of the transaction, ML Management will lease the transferred employees to Ovation to continue to provide investment advisory and research services to the alternative income platform.
• ML Management formally established an office in Austin, Tex., through the assignment of Ovation's existing lease.
• On the amendment date a portion of the consideration was paid by ML Management to Ovation as a prepayment on the purchase price. Concurrent with the amendment, a wholly owned subsidiary of Mount Logan upsized its existing credit facility by $4.5-million.
• Target closing of the transaction in third quarter 2023, subject to satisfaction of the final closing conditions.

Management commentary

• Ted Goldthorpe, chief executive officer and chairman of Mount Logan, noted: "Since announcing the transaction in January, our confidence in Mike and Ovation continued to grow. We are already beginning to see the benefits of the collaboration across the platforms. The transaction with Ovation is consistent with our strategy of growing semi-permanent third party capital and we remain excited about incorporating the Ovation strategy into our asset management business fully. We welcome the Ovation members to the Mount Logan team and look forward to closing the transaction in the summer."
• Mike Rovner, managing partner of Ovation, added: "We are excited about the progress made on the transaction since announcing in January, 2023. The Mount Logan and Ovation teams spent substantial time together throughout the transaction process and we remain confident in the size of the opportunity available to us through the combination of Ovation's experience in specialized investing with the operational scale and resources of Mount Logan. We look forward to finalizing the transaction later this year."

About Mount Logan Capital Inc.

Mount Logan is an alternative asset management and insurance solution company that is focused on public and private debt securities in the North American market and the reinsurance of annuity products primarily through its wholly owned subsidiaries ML Management and Ability. The company also actively sources, evaluates, underwrites, manages, monitors and primarily invests in loans, debt securities and other credit-oriented instruments that present attractive risk-adjusted returns and present low risk of principal impairment through the credit cycle.

Ability is a Nebraska-domiciled insurer and reinsurer of long-term-care policies acquired by Mount Logan in the fourth quarter of fiscal year 2021. Ability is unique in the insurance industry in that its long-term-care portfolio's morbidity risk has been largely reinsured to third parties, and Ability is no longer insuring or reinsuring new long-term-care risk.

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