Mount Logan Capital (MLCI) Investor presentation summary

Business overview

• Operates as a Canada-based, publicly listed asset management and insurance solutions company focused on North American credit investments, with $2.5B in AUM as of June 30, 2024.

• Generates revenue from asset management fees and insurance earnings, with a 4% annual dividend yield and C$0.08 per share annual dividend.

• Manages diversified investment vehicles, including insurance, CLOs, specialty finance, and interval funds, serving institutional and retail clients.

• Insurance business, Ability, holds a $738M investment portfolio diversified across investment grade, private credit, and real estate debt.

• Senior management has extensive experience in credit platforms at leading financial institutions.

Strategic growth and business model

• Pursues both organic and inorganic growth, closing 14 acquisitions and strategic investments since 2018.

• Focuses on private credit, benefiting from declining bank lending and growing demand from corporations.

• Asset management platform targets 1-2% management fees, while insurance solutions target a 1% spread between assets and liabilities.

• Recent organic growth includes a 780% CAGR in the Opportunistic Credit Interval Fund and 472% CAGR in sub-advisory relationships.

• Insurance segment is expanding through reinsurance of annuities, with $322M of MYGA premiums reinsured and $67M YTD in 2024.

Financial performance and earnings

• For the six months ended June 30, 2024, reported $16.7M net income and $6.7M fee-related earnings (FRE) on a trailing twelve-month basis.

• Spread-related earnings (SRE) for the trailing twelve months ended June 30, 2024, were $11.6M, representing 1.9% of average net investments.

• Net yields on insurance investment portfolio increased from 4.1% to 8.5% as of Q2 2024, with insurance AUM more than doubling since acquisition.

• Maintains a high-quality insurance investment portfolio, with 75% in bonds/loans and 13% in real estate loans.

• Paid C$0.02 per share dividend for 20 consecutive quarters, totaling C$0.40 per share since 2019.