Mr. Ted Goldthorpe reports

MOUNT LOGAN CAPITAL INC. ANNOUNCES FIRST QUARTER 2023 FINANCIAL RESULTS

Mount Logan Capital Inc. has released its financial results for the quarter ended March 31, 2023. All amounts are stated in U.S. dollars, unless otherwise indicated. The financial results have been adjusted for the adoption of IFRS 17 Insurance Contracts ("IFRS 17") which became effective January 1, 2023. IFRS 17 is effective for years beginning as of January 1, 2023, and has been applied retrospectively with a transition date of January 1, 2022. IFRS 17 does not impact the underlying economics of the business, nor does it impact the Company's business strategies.

First Quarter 2023 Highlights

• Continued to enter into new flow agreements for existing MYGA contracts, contributing to higher total assets in the insurance segment.
• Total net investment income for the insurance segment of the Company was $20.2 million, an increase of $9.3 million as compared to $10.9 million for the first quarter of 2022. The increase is largely due to interest received from MYGA securities acquired since the corresponding period in the prior fiscal year.
• Achieved 9.0% (1) yield on the insurance investment portfolio, up 1.27% when compared to the fourth quarter of 2022 and up 4.0% when compared to the first quarter 2022. This is supported by capital deployment into higher yielding, floating rate opportunities coupled with the rise in underlying rates.
• Successful adoption of IFRS 17 effective January 1, 2023. IFRS 17 improves the accounting methodology related to insurance contracts, and it changes the principles of the recognition of insurance contract earnings of the insurance segment of the Company. IFRS 17 does not impact the underlying economics of the business, nor does it impact the Company's business strategies.
• Fee Related Earnings ("FRE") for the asset management segment of the Company was $1.4 million for the three months ended March 31, 2022, a decrease of $0.6 million as compared to $2.0 million in the corresponding period in the prior year.

(1) The yield is calculated based on the net investment income divided by the average of investments in financial assets for the current and prior period, and then is annualized.

Subsequent Events

• Closed the first step of the previously announced Ovation transaction pursuant to an amendment to the definitive agreement ("Amendment") on May 2, 2023 ("Amendment Date"). 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 (as defined below) effective as of the Amendment Date. Remaining employees of Ovation are expected to transition to ML Management upon the final closing of the transaction expected to occur in July 2023. Concurrent with the Amendment, a wholly owned subsidiary of Mount Logan upsized its existing credit facility by $4.5 million. Mount Logan will begin earning revenues from this acquisition immediately.
• Declared a shareholder distribution in the amount of C$0.02 per common share for the second quarter of 2023, payable on May 31, 2023 to shareholders of record at the close of business on May 18, 2023. This cash dividend marks the fifteenth consecutive quarter of the Company issuing a C$0.02 distribution to its shareholders. This dividend is designated by the Company as an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.
• The Company is pleased to announce the appointment of David Allen as a director of the Company. Mr. Allen is a Senior Advisor to Grant Thornton, a global tax, audit, accounting and advisory firm and a Senior Advisor and Board member of CBRE Investment Management, a real estate investment management firm. Mr. Allen has over 25 years of experience in deal origination, financings, mergers and acquisitions, valuations and restructurings, and previously held senior advisory positions with portfolio companies of private equity firms Trilantic Capital Partners, Warburg Pincus LLC, and previously served as a Senior Advisor to the credit platform of BC Partners Advisors L.P. Prior to working with BC Partners Advisors L.P., Mr. Allen was an Operating Partner at Apollo Global Management, responsible for the origination and structuring of assets supporting its future insurance operations. Mr. Allen received his Bachelor of Sciences, Industrial and Labor Economics, from Cornell University.

Chief Executive Officer, Ted Goldthorpe, and Co-Presidents Matthias Ederer and Henry Wang, will receive no salary or bonuses of any kind for the 2023 fiscal year as a testament to management's commitment to and belief in Mount Logan's long-term value creation potential. Instead, their compensation will be 100% equity-based compensation granted pursuant to the Company's security-based compensation arrangements that vest vests over time for services rendered.

Management Commentary

Ted Goldthorpe, Chief Executive Officer and Chairman of Mount Logan stated, "As we begin 2023, we are making progress on our growth objectives across both the asset management and insurance solutions verticals. Despite market volatility and slower primary market activity, we opportunistically deployed capital in opportunities and saw stable performance across our managed portfolios. We announced the completion of the first step of the Ovation transaction after quarter-end, which will drive incremental fee-related earnings for the business in the future. On the insurance solutions side, Ability continued to progress on its reinsurance activities of fixed annuities, helping grow total assets of the platform. We also recently completed the transition to IFRS 17 for insurance contract accounting, which contributed to an increase in expenses during the first quarter, but is an important milestone for our platform. I am grateful to our team for their commitment to the platform, which enabled Mount Logan's transformation over these past months and years. I am excited to update our shareholders in the second quarter on additional progress we are making on growing fee-related earnings, increasing assets at the insurance company and further expanding Mount Logan's capabilities.

Selected Financial Highlights

Total net revenue for the asset management segment of the Company was $1.8 million for the three months ended March 31, 2023, compared with $2.6 million in the corresponding period in the prior year. The decrease in revenue was largely driven by decreased management and servicing fees. Management and servicing fees decreased $0.4 million for the three months ended March 31, 2023, from the corresponding period in the prior year, primarily due to the net economic loss attributable to the Company's service agreement with Sierra Crest Investment Management LLC. Interest income and dividend income decreased $107 million for the three months ended March 31, 2023, from the corresponding period in the prior year due to the transfer of assets to Ability during fiscal 2022 as a result of the Company's continued expansion of its focus from a lending-oriented credit platform to an alternative asset management platform.

Total revenue for the insurance segment of the Company of $10.2 million, a decrease of $7.2 million as compared to $17.4 million for the fourth quarter of 2022 and an increase of $25 million as compared to $(14.8) million for the first quarter of 2022. The decrease quarter-over-quarter is primarily as a result of an overall decrease in net investment income, net gains from investment activities and realized and unrealized gains on embedded derivatives - funds withheld.

Reported net (loss) income available to holders of common shares for the three months ended March 31, 2023, was $(29.5) million. This compares to reported net income of $22.9 million for the three months ended March 31, 2022. This decrease in reported net income was primarily due to adoption of IFRS 17 for insurance contracts.

Adjusted net (loss) income available to holders of common shares for the three months ended March 31, 2023, was $(28.8) million. This compares to reported adjusted net income of $23.5 million for the three months ended March 31, 2022. Adjusted net income (loss) in the current and prior year periods excludes transaction costs, acquisition-related costs (including integration costs), and amortization of acquisition-related intangible assets for the asset management segment and certain market-related impacts and experience-related items for the insurance segment. This decrease in reported adjusted net income reflects the impact of the adoption of IFRS 17 for insurance contracts.

Total Capital as at March 31, 2023, our total capital was $78.0 million, an decrease of $30.0 million from December 31, 2022. Total capital consists of debt obligations and total shareholders' equity.

Basic Earnings per share ("EPS") was $(1.33) for the three months ended March 31, 2023, a decrease of $(1.54) from $0.21 for the three months ended December 31, 2022. The decrease in EPS across basic and adjusted presentation, as discussed below, is largely due to the adoption of IFRS 17 for insurance contracts applied retrospectively from January 1, 2022.

Adjusted basic EPS was $(1.30) for the quarter ended March 31, 2023, a decrease of $(1.54) from $0.24 for the three months ended December 31, 2022.

Liquidity and Capital Resources

As of March 31, 2023, the asset management segment of the Company had $54.0 million (par value) of borrowings outstanding, of which $26.5 million had a fixed rate and $27.5 million had a floating rate. This balance was comprised of $29.5 million of outstanding borrowings under a credit facility of a wholly-owned subsidiary of the Company, $15.0 million of seller notes due 2031 from the acquisition of Ability, $7.5 million borrowed by Lind Bridge L.P., a limited partnership of which the Company is, directly and indirectly, the sole limited partner and sole general partner due 2029, and $4.0 million of seller notes from the acquisition of certain assets from Capitala Investment Advisors, LLC due 2025. Additionally, in the quarter ended March 31, 2023, the insurance segment of the Company had $2.25 million (par value) of surplus debenture from Sentinel Security Life Insurance Company due in the second quarter 2023. Liquid assets, including high-quality assets that are marketable, can be pledged as security for borrowings, and can be converted to cash in a time frame that meets liquidity and funding requirements. As of March 31, 2023 and December 31, 2022, the total liquid assets of the Company were as follows:

The Company defines working capital as the sum of cash, restricted cash, investments that mature within one year of the reporting date, management fees receivable, receivables for investments sold, accrued interest and dividend receivables, and premium receivables, less the sum of debt obligations, payables for investments purchased, amounts due to affiliates, reinsurance liabilities, and other liabilities that are payable within one year of the reporting date.

As of March 31, 2023, the Company has working capital of $179.6 million, reflecting current assets of $199.7 million, offset by current liabilities of $20.1 million, as compared with working capital of $163.9 million as at December 31, 2022, reflecting current assets of $196.6 million, offset by current liabilities of $32.7 million. The increase in working capital is primarily driven by increased cash in the insurance segment as a result of premium growth through the reinsurance of MYGA.

Conference Call

The Company will hold a conference call on Friday, May 12, 2023 at 12:00 p.m. Eastern Time to discuss the first quarter 2023 financial results. Shareholders, prospective shareholders, and analysts are welcome to listen to the call. To join the call, please use the dial-in information below. A recording of the conference call will be available on our Company's website in the 'Investor Relations' section under "Events".

• Dial-in Toll Free: 1-833-470-1428
• International Dial-in: 1-404-975-4839
• Access Code: 612276

About Mount Logan Capital Inc.

Mount Logan Capital Inc. is an alternative asset management and insurance solutions 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 Mount Logan Management LLC ("ML Management") and Ability Insurance Company ("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 Insurance 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 re-insured to third parties, and Ability is no longer insuring or re-insuring new long-term care risk.

We seek Safe Harbor.