Mount Logan Capital : August 9, 2023 — Mount Logan Capital Inc. Reports June 2023 Interim Results; Declares Shareholder Distribution

FOR IMMEDIATE RELEASE

Mount Logan Capital Inc.

Announces Second Quarter 2023 Financial Results

Successfully Closes Two Strategic Acquisitions, Increases MYGA Volumes by $66m Quarter-over-Quarter, and

Increases Insurance Net Investment Income Quarter-over-Quarter and Year-over-Year

Declares Quarterly Distribution of C$0.02 Per Common Share in the Third Quarter of 2023, Marking the

Sixteenth Consecutive Quarter of a Shareholder Distribution

TORONTO, August 9, 2023 - Mount Logan Capital Inc. (NEO: MLC) (the "Company" or "Mount Logan") announced today its financial results for the quarter ended June 30, 2023. All amounts are stated in United States 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-ownedsubsidiary 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-incomeand 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-yearguaranteed 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

1Carrying value of fixed annuity products is amortized at a rate that exactly discounts the projected actual cash flows to the net carrying amount of the liability at the date of issue.

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-financefocused 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-quarterand 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-endas well as completed the final closing of the Ovation transaction shortly after quarter-end,both of which will drive incremental fee-relatedearnings 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

($ in Thousands)

	Three Months Ended							Six Months Ended
						March 31,
		June 30, 2023		2023				June 30, 2022		June 30, 2023		June 30, 2022
Reported Results
Asset management
Revenue	$	2,996			$	1,926			$	2,022		$	4,922		$	4,555
Expenses		6,133				5,840				2,778			11,973			5,512
Net income (loss) - asset management		(3,137)			(3,914)			(756)		(7,051)		(957)
Insurance
Revenue (4)		9,667				10,186				(20,955)		19,853			(35,756)
Expenses		7,433				35,459				(28,062)		42,892			(66,072)
Net income (loss) - insurance		2,234				(25,273)			7,107			(23,039)		30,316
Income before income taxes		(903)			(29,187)		$	6,351			(30,090)		29,359
Provision for income taxes		248				(265)		$	(260)		(17)			(344)
Net income (loss)	$	(655)			$	(29,452)		$	6,091		$	(30,107)		$	29,015
Basic EPS	$	(0.03)			$	(1.33)		$	0.27		$	(1.36)		$	1.31
Diluted EPS	$	(0.03)			$	(1.33)		$	0.27		$	(1.36)		$	1.30
Adjusting Items
Asset management
Transaction costs (1)		(1,278)			(158)			-		(1,436)		-
Acquisition integration costs (2)		(375)			(375)			(625)		(750)		(1,000)
Non-cash items (3)		(140)			(140)			(199)		(280)		(398)
Impact of adjusting items on expenses		(1,793)			(673)			(824)		(2,466)		(1,398)
Adjusted Results
Asset management
Revenue	$	2,996			$	1,926			$	2,022		$	4,922		$	4,555
Expenses		4,340				5,167				1,954			9,507			4,114
Net income (loss) - asset management		(1,344)			(3,241)			68			(4,585)		441
Income before income taxes		890				(28,514)			7,175			(27,624)		30,757
Provision for income taxes		248				(265)			(260)		(17)			(344)
Net income (loss)	$	1,138			$	(28,779)		$	6,915		$	(27,641)		$	30,413
Basic EPS	$	0.05			$	(1.30)		$	0.31		$	(1.25)		$	1.37
Diluted EPS	$	0.05			$	(1.30)		$	0.31		$	(1.25)		$	1.37

1. Transaction costs are related to business acquisitions and strategic initiatives transacted by the Company.
2. Acquisition integration costs are consulting and administration services fees related to integrating a business into the Company. Acquisition integration costs are recorded in general, administrative and other expenses.
3. Non-cashitems include amortization of acquisition-related intangible assets and impairment of goodwill, if any.
4. Insurance Revenue item is presented net of insurance service expenses and net expenses from reinsurance contracts held.

Asset Management

Total Revenue - Asset Management

($ in Thousands)

			Three Months Ended			Six Months Ended
			June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Management and servicing fees	$	2,146	$	1,241		$	3,383		$	2,626
Equity investment earning			452			305			920			813
Interest income			271			330			539			640
Dividend income			109			155			165			276
Net gains (losses) from investment activities			18			(9)		(85)		200
Total revenue - asset management	$	2,996		$	2,022		$	4,922		$	4,555

Fee Related Earnings ("FRE")

Fee related earnings ("FRE") is a non-IFRS financial measure used to assess the asset management segment's generation of profits from revenues that are measured and received on a recurring basis and are not dependent on future realization events. The Company calculates FRE, and reconciles FRE to net income from its asset management activities, as follows:

($ in Thousands)

		Three Months Ended			Six Months Ended
		June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net income (loss) and comprehensive income (loss)		(655)			6,091			(30,107)			29,015
Adjustment to net income (loss) and comprehensive income (loss):
Total revenue - insurance (1)		(9,667)		20,955			(19,853)		35,756
Total expenses - insurance		7,433			(28,062)		42,892			(66,072)
Net income - asset management (2)		(2,889)			(1,016)		(7,068)			(1,301)
Adjustments to non-fee generating asset management business and other recurring
revenue stream:
Management fee from Ability		969			527			1,792			1,009
Interest income		-		(59)		-		(101)
Dividend income		(109)			(155)		(165)		(276)
Net gains (losses) from investment activities		(18)		10			85			(198)
Administration fees		313			233			487			440
Transaction costs		1,278			-		1,436			-
Amortization of intangible assets		140			199			280			398
Interest and other credit facility expenses		1,403			766			2,657			1,527
General, administrative and other		422			930			3,378			1,835
Fee Related Earnings	$	1,509		$	1,435		$	2,882		$	3,333

(1) Includes add-back of management fees paid to ML Management.

(2) Represents net for asset income management operating segment.