Mount Logan Capital Inc. Experiences 2021 Annual Outcomes; Declares Shareholder Distribution – InsuranceNewsNet

TORONTO, March 22, 2022 (GLOBE NEWSWIRE) — Mount Logan Capital Inc. (NEO: MLC) (“Mount Logan,” “our,” “we,” or the “Firm”) publicizes its monetary outcomes for the fourth quarter and yr ended December 31, 2021. All quantities are said in United States {dollars}, except in any other case indicated.

Highlights:

• Within the fourth quarter, Mount Logan accomplished its acquisition of Capacity Insurance coverage Firm (“Capacity”), a Nebraska domiciled insurer and reinsurer of long-term care insurance policies.
• Complete income for the yr ended December 31, 2021 was $11.6 million, a rise from $3.5 million or 231% for the yr ended December 31, 2020.
• Internet revenue for the yr ended December 31, 2021 was $28.7 million, a rise from $(2.8) million for the yr ended December 31, 2020.
• Shareholders’ fairness as at December 31, 2021 of $85.3 million, a rise from $43.2 million or 98% as at December 31, 2020;
• Fundamental earnings per share for the yr ended December 31, 2021 was $1.55¹, a rise from $(0.24) for the yr ended December 31, 2020.
• Mixture dividend of CAD$0.08 per frequent share declared and paid through the yr ended December 31, 2021, in keeping with prior yr.

Ted Goldthorpe, Chief Govt Officer and Chairman of Mount Logan, famous, “2021 was one other eventful yr and we’re more than happy with the efficiency the Firm and our strategic transactions that expanded Mount Logan into an asset administration and insurance coverage platform. The Firm efficiently diversified its enterprise from curiosity revenue to recurring administration charges that we count on to proceed rising over the course of 2022. Our integration of Capacity has been progressing quickly since shut and we count on to develop through ramping the reinsurance of fastened annuities over the subsequent yr. We stay up for making continued progress in 2022 as we proceed to evaluate strategic transactions that may develop our asset administration and insurance coverage enterprise.”

¹ Displays the non-cash change in insurance coverage contract liabilities and reinsurance property.

Replace on Operations
Capacity
On October 29, 2021, the Firm accomplished the acquisition of 100% of the fairness of Capacity. Capacity is a Nebraska domiciled insurer and reinsurer of long-term care insurance policies that’s distinctive in that its long-term care portfolio’s morbidity danger has been largely re-insured to 3rd events, and Capacity is not insuring or re-insuring new long-term care danger. As a part of the acquisition, the Firm invested $10.0 million of capital into Capacity to strengthen Capacity’s stability sheet and launch a platform for the reinsurance of annuities, which is predicted to reinsure over $150.0 million of fastened annuities in 2022.

CLO Reset
In December 2021, the Firm accomplished the reset of its 2018-1 collateralized mortgage obligation (“CLO”) which prolonged the lifetime of the CLO growing the runway of payment technology for ML Administration. Moreover, in reference to the reset, Mount Logan divested a cloth portion of the mortgage portfolio on its stability sheet into the CLO and a subsidiary of the Firm absolutely repaid and terminated its $60.0 million revolving warehouse facility.

Results of Operations by Phase
The Firm considers its enterprise inside two working segments: asset administration and insurance coverage.

Asset administration
Complete income of $2.5 million within the fourth quarter of fiscal 2021 represents a lower of $0.7 million quarter-over-quarter primarily associated to internet losses from funding actions. Complete income of $8.8 million for the yr ended December 31, 2021 represents a rise of $5.3 million year-over-year primarily associated to the rise in administration and servicing charges. Complete bills of $5.3 million within the fourth quarter of fiscal 2021 represents a rise of $2.1 million quarter-over-quarter primarily associated to skilled charges incurred in reference to the growth of the Firm’s enterprise into an asset administration and insurance coverage platform. Complete bills of $11.5 million for the yr ended December 31, 2021 represents a rise of $6.4 million year-over-year primarily associated to will increase in skilled charges, transaction prices, curiosity and credit score facility bills, amortization of intangible property and administration charges. Internet lack of $2.8 million within the fourth quarter of fiscal 2021 and $2.7 million for the yr ended December 31, 2021 was primarily pushed by transaction prices and acquisition integration prices. Adjusted internet (loss) revenue² would have been $(0.5) million and $1.5 million within the fourth quarter of fiscal 2021 and the yr ended December 31, 2021, respectively, excluding transaction prices, acquisition integration prices, and amortization of acquisition-related intangible property. The adjusted internet loss within the fourth quarter of fiscal 2021 was primarily pushed by skilled charges incurred in reference to the growth of the Firm’s enterprise into an asset administration and insurance coverage platform.

² Represents a non-IFRS measure. See the Non-IFRS Monetary Measures part on this doc and in our Administration’s Dialogue & Evaluation for the yr ended December 31, 2021 for related details about such measures.

Insurance coverage
Evaluation of the quarterly insurance coverage phase isn’t related given the acquisition of Capacity closed within the fourth quarter of fiscal 2021.

Complete income of $2.8 million was primarily on account of funding revenue generated on property supporting insurance coverage contract liabilities, internet of funding exercise attributable to collateral beneath funds withheld reinsurance, partially offset by realized and unrealized funding losses through the interval. Complete bills of $(30.8) million was primarily pushed by a decline in insurance coverage contract liabilities through the interval, internet of the change in reinsurance property.

Our audited annual consolidated monetary statements for the yr ended December 31, 2021 and associated administration’s dialogue and evaluation will likely be accessible on the Firm’s web site at www.mountlogancapital.ca and on SEDAR (www.sedar.com).

Dividend Declaration
The Board of Administrators of the Firm (the “Board”) declared a money dividend within the quantity of CAD$0.02 per frequent share to be paid on April 8, 2022 to shareholders of document on March 31, 2022. That is the thirteenth consecutive dividend Mount Logan has paid to its shareholders since closing its plan of association within the fourth quarter of fiscal 2018. This dividend is designated by the Firm as an eligible dividend for the aim of the Earnings Tax Act (Canada) and any related provincial or territorial laws. An enhanced dividend tax credit score applies to eligible dividends paid to Canadian residents.

The declaration and fee by the Firm of any future money dividends, together with the quantity thereof, will likely be on the discretion of the Board and can rely on, amongst different issues, the monetary situation, capital necessities and earnings of the Firm.

Officer Appointment
On March 22, 2022, the Board appointed Albert Siu because the Firm’s Chief Accounting Officer.

Outlook for 2022
The Firm’s monetary ends in 2022 are anticipated to mirror continued normalization of operations with funding advisory and insurance coverage operations having a full yr of outcomes. We proceed to evaluate strategic transactions that may develop our asset administration and insurance coverage enterprise.

Convention Name
We’ll maintain a convention name on Friday, April 1, 2022 at 10:30 a.m. Japanese Time to debate our 2021 monetary outcomes. Shareholders, potential shareholders, and analysts are welcome to hearken to the decision. To hitch the decision, please use the dial-in info beneath and ask to be joined into the “Mount Logan Capital Inc.” name. A recording of the convention name will likely be accessible on our Firm’s web site www.mountlogancapital.ca within the Investor Relations part beneath Occasions.

About Mount Logan Capital Inc.
Mount Logan Capital Inc. is another asset administration and insurance coverage options firm that’s targeted on private and non-private debt securities within the North American market and the reinsurance of annuity merchandise primarily via its wholly-owned subsidiaries Mount Logan Administration LLC and Capacity Insurance coverage Firm. The Firm additionally actively sources, evaluates, underwrites, manages, displays and primarily invests in loans, debt securities, and different credit-oriented devices that current engaging risk-adjusted returns and current low danger of principal impairment via the credit score cycle.

Capacity is a Nebraska domiciled insurer and reinsurer of long-term care insurance policies acquired by Mount Logan within the fourth quarter of fiscal 2021. Capacity is exclusive within the insurance coverage trade in that its long-term care portfolio’s morbidity danger has been largely re-insured to 3rd events, and Capacity is not insuring or re-insuring new long-term care danger.

Non-IFRS Monetary Measures
This information launch makes reference to sure non-IFRS monetary measures. These measures should not acknowledged measures beneath IFRS, do not need a standardized which means prescribed by IFRS and might not be akin to related measures introduced by different firms. Moderately, these measures are offered as extra info to enrich IFRS monetary measures by offering additional understanding of the Firm’s outcomes of operations from administration’s perspective. The Firm’s definitions of non-IFRS measures used on this information launch might not be the identical because the definitions for such measures utilized by different firms of their reporting. Non-IFRS measures have limitations as analytical instruments and shouldn’t be thought-about in isolation nor as an alternative choice to evaluation of the Firm’s monetary info reported beneath IFRS. The Firm believes that securities analysts, traders and different events steadily use non-IFRS monetary measures within the analysis of issuers. The Firm’s administration additionally makes use of non-IFRS monetary measures so as to facilitate working efficiency comparisons from interval to interval.

Cautionary Assertion Relating to Ahead-Trying Statements
This press launch incorporates forward-looking statements and data throughout the which means of relevant securities laws. Ahead-looking statements will be recognized by the expressions “seeks”, “expects”, “believes”, “estimates”, “will”, “goal” and related expressions. The forward-looking statements should not historic information however mirror the present expectations of the Firm relating to future outcomes or occasions and are primarily based on info at the moment accessible to them. Sure materials components and assumptions have been utilized in offering these forward-looking statements. The forward-looking statements mentioned on this launch embody, however should not restricted to, statements referring to the Firm’s continued transition to an asset administration and insurance coverage platform enterprise and the getting into into of additional strategic transactions to range the Firm’s enterprise and additional develop recurring administration payment and different revenue; the Firm’s plans to lower Capacity’s long-term care publicity and exchange and develop property by focusing the enterprise on the reinsurance of annuity merchandise;  the Firm’s enterprise technique, mannequin, strategy and future actions; portfolio composition and dimension, asset administration actions and associated revenue, capital elevating actions, future credit score alternatives of the Firm, portfolio realizations, the safety of stakeholder worth and the growth of the Firm’s mortgage portfolio. All forward-looking statements on this press launch are certified by these cautionary statements. The Firm believes that the expectations mirrored in forward-looking statements are primarily based upon affordable assumptions; nevertheless, the Firm can provide no assurance that the precise outcomes or developments will likely be realized by sure specified dates or in any respect. These forward-looking statements are topic to quite a few dangers and uncertainties that would trigger precise outcomes or occasions to vary materially from present expectations, together with that the Firm has a restricted working historical past with respect to an asset administration oriented enterprise mannequin; Capacity could not generate recurring asset administration charges or strategically profit the Firm as anticipated; the anticipated synergies by combining the enterprise of Mount Logan with the enterprise of Capacity might not be realized as anticipated; the chance that the Firm might not be profitable in integrating the enterprise of Capacity with out important use of the Firm’s assets and administration’s consideration; the chance that Capacity could require a big funding of capital and different assets so as to increase and develop the enterprise; the Firm doesn’t have a document of working an insurance coverage options enterprise and is topic to all of the dangers and uncertainties related to a broadening of the Firm’s enterprise and the issues mentioned beneath “Dangers Components” in probably the most just lately filed annual info kind and administration dialogue and evaluation for the Firm. Readers, due to this fact, shouldn’t place undue reliance on any such forward-looking statements. Additional, a forward-looking assertion speaks solely as of the date on which such assertion is made. The Firm undertakes no obligation to publicly replace any such assertion or to mirror new info or the incidence of future occasions or circumstances besides as required by securities legal guidelines. These forward-looking statements are made as of the date of this press launch.

This press launch isn’t, and certainly not is it to be construed as, a prospectus or an commercial and the communication of this launch isn’t, and certainly not is it to be construed as, a proposal to promote or a proposal to buy any securities within the Firm or in any fund or different funding automobile. This press launch isn’t supposed for U.S. individuals. The Firm’s shares should not and won’t be registered beneath the U.S. Securities Act of 1933, as amended, and the Firm isn’t and won’t be registered beneath the 1940 Act. U.S. individuals should not permitted to buy the Firm’s shares absent an relevant exemption from registration beneath every of those Acts. As well as, the variety of traders in america, or that are U.S. individuals or buying for the account or good thing about U.S. individuals, will likely be restricted to such quantity as is required to adjust to an accessible exemption from the registration necessities of the 1940 Act.

For extra info, please contact:

Jason RoosChief Monetary Officer
[email protected]

Mount Logan Capital Inc.
365 Bay Road, Suite 800
Toronto, ON M5H 2V1

Supply: Mount Logan Capital Inc.