Mount Logan Capital Inc. Announces Third Quarter 2025 Financial Results

Core Insights - Mount Logan Capital Inc. declared a quarterly distribution of $0.03 per common share for Q4 2025, marking its first shareholder distribution as a US registrant [7] - The company reported Fee Related Earnings (FRE) of $9.2 million for the trailing twelve months ending September 30, 2025, and Spread Related Earnings (SRE) of $5.2 million for the same period [1][4] - The completion of the business combination with 180 Degree Capital Corp on September 12, 2025, has expanded Mount Logan's investment capabilities and strengthened its balance sheet [4][8] Financial Performance - Total revenue for the Asset Management segment was $9.1 million for Q3 2025, a 127% increase from Q3 2024, primarily driven by a $4.5 million gain from the acquisition of TURN [4] - The Insurance Solutions segment reported total net investment income of $17.0 million for Q3 2025, a decrease of 12% compared to Q3 2024, attributed to a decline in SOFR [4] - The company achieved a yield of 7.4% on its insurance investment portfolio for Q3 2025, with a yield of 7.9% when excluding certain funds [4] Segment Analysis - FRE for the Asset Management segment was $2.5 million for Q3 2025, with a total of $7.0 million for the nine months ended September 30, 2025 [4] - SRE for the Insurance Solutions segment was $1.1 million for the nine months ended September 30, 2025, down from $9.6 million in the prior year, due to lower investment income and higher funding costs [4][19] - The book value of the insurance segment increased to $134.1 million as of September 30, 2025, up from $126.5 million in Q3 2024 [4] Capital and Liquidity - Total capital of the company was $222.8 million as of September 30, 2025, an increase of $28.2 million from December 31, 2024 [10] - The Asset Management segment had $77.8 million in borrowings outstanding, while the Insurance Solutions segment reported $17.3 million in borrowings [25][26] - Total liquid assets for the Insurance Solutions segment were $770.4 million as of September 30, 2025, compared to $765.4 million at the end of 2024 [27]