Mr. Ted Goldthorpe reports

MOUNT LOGAN CAPITAL INC. ANNOUNCES THIRD QUARTER 2023 FINANCIAL RESULTS

Mount Logan Capital Inc. has released its financial results for the quarter ended Sept. 30, 2023. All amounts are stated in U.S. dollars unless otherwise indicated. The financial results have been adjusted for the adoption of international financial reporting standard 17 (Insurance Contracts), which became effective Jan. 1, 2023. IFRS 17 is effective for years beginning as of Jan. 1, 2023, and has been applied retrospectively with a transition date of Jan. 1, 2022. IFRS 17 does not impact the underlying economics of the business, nor does it impact the company's business strategies.

Third quarter 2023 highlights:

• On July 5, 2023, completed the previously announced transaction with Ovation Partners LP for the management of Ovation's Alternative Income platform; the company completed the transactions under its membership interest and asset purchase agreement with the Ovation Advisor, a Texas-based specialty-finance-focused asset manager, pursuant to which the company acquired all of the membership interests of Ovation and certain assets from the Ovation Advisor, pursuant to which Mount Logan Management LLC has become the investment adviser to the platform; the Alternative Income platform is focused on investments in commercial lending, real estate lending, consumer finance and litigation finance;
• Basic earnings per share were 62 cents for the three months ended Sept. 30, 2023, an increase of 65 cents from (three cents) for the three months ended June 30, 2023; the increase in EPS across basic and adjusted presentation 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 68 cents for the quarter ended Sept. 30, 2023, an increase of 63 cents from five cents for the three months ended June 30, 2023;
• Management fees for the asset management segment were a record $2.5-million for the quarter ended Sept. 30, 2023, an increase of $400,000 from the three months ended June 30, 2023, and $1.3-million higher when compared with the three months ended Sept. 30, 2022; the increase year over year resulted from the Ovation acquisition in respect of which the company receives a management fee and incentive fees that commenced in the second quarter of 2023;
• Total net investment income for the insurance segment of the company was $26.2-million, an increase of $4.9-million as compared with $21.3-million for the second quarter of 2023 and an increase of $10.7-million as compared with $15.5-million for the third quarter of 2022; the increase is primarily due to the increase in interest rates and the increase in Ability Insurance Company's bond portfolio;
• Investment contract liabilities, including Myga products, had a carrying value of $168.1-million as of the quarter ended Sept. 30, 2023, an increase of $9.4-million when compared with a carrying value of $158.7-million as of the quarter ended June 30, 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; as of Sept. 30, 2023, the $250-million of Myga co-insurance agreements has been satisfied;
• Insurance segment raised $17-million of capital during the third quarter across a $12-million surplus note issuance at Ability and an additional $5-million contribution from a Lind bridge note issuance; the capital raises help drive growth for the insurance segment across assets and progress it toward its long-term vision for the business.

Subsequent events:

• Declared a shareholder distribution in the amount of two Canadian cents per common share for the fourth quarter of 2023, payable on Nov. 30, 2023, to shareholders of record at the close of business on Nov. 20, 2023; this cash dividend marks the 17th consecutive quarter of the company, issuing a two-Canadian-cent 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: "Following the close of the third quarter of 2023, we continue to see strong earnings momentum across both the asset management and insurance solutions segments of the company. For the second straight quarter, both revenue for the asset management segment and net investment income for the insurance solutions segment grew quarter over quarter and year over year. I also would like to highlight that our basic earnings per share grew to 62 cents this quarter, up 65 cents per share from the second quarter. Ability further progressed on its reinsurance activities of fixed annuities, helping grow total assets of the platform. We also completed the final closing of the Ovation transaction early in the quarter, 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 capitalizing on the growth opportunities present with our recent acquisitions."

Conference call

The company will hold a conference call on Friday, Nov. 10, 2023, at 12:30 p.m. Eastern Time, to discuss the third 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 the 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:  367148

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 Mount Logan Management and Ability, respectively. The company also earns investment income by investing 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 and minority equity stakes in funds and companies.

Ability is a Nebraska domiciled insurer and reinsurer of long-term-care policies and annuity products 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. Ability is also no longer insuring new long-term-care risk and will continue to expand and diversify its business, including through the reinsurance of annuity products, which commenced in the second quarter of fiscal 2022.

We seek Safe Harbor.