Mr. Ted Goldthorpe reports

MOUNT LOGAN CAPITAL INC. ANNOUNCES SECOND QUARTER 2023 FINANCIAL RESULTS

Mount Logan Capital Inc. has released its financial results for the quarter ended June 30, 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.

Second Quarter 2023 Highlights

• On May 2, 2023, and then subsequent to quarter-end on July 5, 2023, completed two-step transaction with Ovation Partners LP ("Ovation") for the management of Ovation's Alternative Income platform. The Alternative Income platform is focused on investments in commercial lending, real estate lending, consumer finance and litigation finance. Concurrent with the initial closing on May 2, 2023, a wholly owned subsidiary of Mount Logan upsized its existing credit facility by $4.5 million. Mount Logan Management LLC, a wholly-owned subsidiary of Mount Logan ("ML Management") began earning revenues from this acquisition immediately following the initial close. Upon final closing on July 5, 2023 ML Management became the adviser of the Ovation's alternative income platform.
• Purchased a minority stake in a large, Canadian alternative asset manager on June 30, 2023, which specializes in global fixed-income and alternative credit strategies. Through its investment, Mount Logan gains access to the team's expertise in investment grade credit and high yield investing.
• Total net investment income for the insurance segment of the Company was $21.3 million, an increase of $1.1 million as compared to the first quarter of 2023 and an increase of $9.5 million as compared to $11.8 million for the second quarter of 2022. The increase is primarily due to the increase in interest rates and the increase in Ability's investment portfolio as additional multi-year guaranteed annuity ("MYGA") policies were reinsured.
• Investment contract liabilities, including MYGA products, had a carrying value1 of $158.7 million as of quarter ended June 30, 2023, an increase of $46.1 million when compared to a carrying value1 of $112.6 million as of the quarter ended March 31, 2023. The increase of investment contract liabilities primarily through premium growth through the reinsurance of MYGA helps increase the Company's total working capital and contributes to higher total assets in the insurance segment.
• Fee Related Earnings ("FRE") for the asset management segment of the Company was $1.5 million for the three months ended June 30, 2023, an increase of $0.1 million as compared to $1.4 million in the corresponding period in the prior year.
• The Company announced the appointment of David Allen and Buckley Ratchford as directors 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. Mr. Ratchford has over two decades of experience as a private investor and is currently the Principal at Jackson Square LLC, an active investment vehicle for investments in private credit, private equity, venture capital and distressed investments. Mr. Ratchford is also a former business partner at Goldman, Sachs & Co. and the founder and former Managing Partner of Wingspan Management Investment.

Subsequent Events

• Announced the completion of the previously announced transaction with Ovation on July 5, 2023 the Company completed the transactions under its membership interest and asset purchase agreement (the "Ovation Purchase Agreement") with Ovation Partners , LP (the "Ovation Advisor"), a Texas-based specialty-finance focused asset manager, pursuant to which the Company acquired (collectively, the "Ovation Acquisition") all of the membership interests of Ovation and certain assets from the Ovation Advisor, pursuant to which ML Management has become the investment advisor to the platform. Ovation's platform is focused on investments in commercial lending, real estate lending, consumer finance and litigation finance. As partial consideration for the acquisition, MLC issued an aggregate of 3,186,398 common shares at a deemed price of C$2.8314 per share. In connection with the acquisition of Ovation, a subsidiary of ML Management assumed the line of credit of Ovation, having an outstanding balance of $1.8 million as of July 5 ,2023.
• Declared a shareholder distribution in the amount of C$0.02 per common share for the third quarter of 2023, payable on August 31, 2023, to shareholders of record at the close of business on August 22, 2023. This cash dividend marks the sixteenth 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.

Management Commentary

Ted Goldthorpe, Chief Executive Officer and Chairman of Mount Logan stated, "As we close out the first half of 2023, we are beginning to see strong earnings momentum across both the asset management and insurance solutions segments of the Company. Both revenue for the asset management segment and net investment income for the insurance solutions segment grew quarter-over-quarter and year-over-year. Ability further progressed on its reinsurance activities of fixed annuities, helping grow total assets of the platform. As we discuss each quarter, we remain active in evaluating strategic investments for the platform and we closed a minority investment in a large private fixed income asset manager prior to quarter-end as well as completed the final closing of the Ovation transaction shortly after quarter-end, both of which will drive incremental fee-related earnings for the business in the future and add further depth and diversification of our specialized credit investment strategies. I am grateful to our team for their tireless work and commitment to the platform and am excited for the opportunity to update our shareholders on additional progress on increasing fee-related earnings, growing assets at the insurance company and integrating our recent acquisitions."

Selected Financial Highlights

• Total revenue for the asset management segment of the Company was $3.0 million for the three months ended June 30, 2023, an increase of $1.1 million as compared with $1.9 million for the three months ended March 31, 2023, and an increase of $0.8 million as compared with $2.2 million for the three months ended June 30, 2022. The increase in revenue was largely driven by increased management and servicing fees, and equity investment earnings. Management fees increased $0.91 million for the three months ended June 30, 2023, from the corresponding period in the prior year, resulting from the first phase of the completion of the Ovation acquisition in the second quarter of 2023, which entitled the Company to receive the associated management and incentive fees.
• Total revenue for the insurance segment of the Company for the three months ended June 30, 2023, of $9.7 million, a decrease of $0.5 million as compared to $10.2 million for the three months ended March 31, 2023 and an increase of $30.7 million as compared to $(21.0) million for the three months ended June 30, 2022. The increase year-over-year is primarily due to the increase in risk-adjusted yields and the increase in Ability's investment portfolio.
• Reported net (loss) income available to holders of common shares for the three months ended June 30, 2023, was $(0.7) million. This compares to reported net income (loss) of $(29.5) million for the three months ended March 31, 2023. This increase resulted primarily from an increase in net insurance finance income due to risk-adjusted interest rate changes.
• Adjusted net (loss) income available to holders of common shares for the three months ended June 30, 2023, was $1.1 million. This compares to reported adjusted net income of $(28.8) million for the three months ended March 31, 2023. 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 increase resulted primarily from an increase in net insurance finance income due to interest rate changes.
• Total Capital as of June 30, 2023, was $91.9 million, a decrease of $25.7 million from December 31, 2022. Total capital consists of debt obligations and total shareholders' equity.
• Basic Earnings per share ("EPS") was $(0.03) for the three months ended June 30, 2023, an increase of $1.30 from $(1.33) for the three months ended March 31, 2023. The increase in EPS across basic and adjusted presentation, as discussed below, resulted primarily from a change in net insurance finance expense driven by an increase in market interest rates in the quarter.
• Adjusted basic EPS was $0.05 for the quarter ended June 30, 2023, an increase of $1.35 from $(1.30) for the three months ended March 31, 2023.

Results of Operations by Segment

Liquidity and Capital Resources

As of June 30, 2023, the asset management segment of the Company had $58.5 million (par value) of borrowings outstanding, of which $26.9 million had a fixed rate and $31.6 million had a floating rate. This balance was comprised of $31.6 million of outstanding borrowings under a credit facility of a wholly-owned subsidiary of the Company, $15.0 million of seller notes due 2031 relating to the acquisition of Ability, $7.9 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, which is 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 June 30, 2023, the insurance segment of the Company had $2.25 million (par value) of surplus debentures from Sentinel Security Life Insurance Company, which was extended in the quarter and now matures in the second quarter of 2028. 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.

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 June 30, 2023, the Company has working capital of $235.3 million, reflecting current assets of $248.3 million, offset by current liabilities of $13.0 million, as compared with working capital of $179.6 million as at March 31, 2023, reflecting current assets of $199.7 million, offset by current liabilities of $20.1 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, August 11, 2023, at 11:00 a.m. Eastern Time to discuss the second 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: 663664

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"), respectively. 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.