Asset manager MLC releases latest insurance financial results

Canada-based asset manager Mount Logan Capital (MLC) has released its fourth quarter and full-year 2022 financial results, including for its insurance segment.

MLC Q4 2022 financial results

For the fourth quarter of 2022 (Q4 FY22), the total revenue for MLC’s insurance segment was $23.9 million, a dramatic increase from $6.4 million for the third quarter of 2022 (Q3 FY22).

MLC explained that the significant increase in total revenue in Q4 FY22 was mainly due to the net unrealized capital gains driven by changes in market interest rates compared to net unrealized capital losses in Q3 FY22.

MLC full-year 2022 financial results

For the full year of 2022 (FY22), the fee-related earnings (FRE) for MLC’s insurance segment totaled $14.2 million, a significant increase from $1.0 million in the full year of 2021 (FY21).

During the same period, the total revenue for MLC’s insurance segment was $21.6 million, up from $2.8 million in FY21. The company explained that the figure increased mainly because FY21 only covered the period from MLC’s acquisition of Ability Insurance Company (Ability) on October 29, 2021, to December 31, 2021.

MLC CEO and chairman Ted Goldthorpe commented: “We are excited about the progress made in 2022 as our strategic positioning of Mount Logan across the asset management and insurance solutions verticals produces results.

“On the insurance solutions side, Ability continued to strengthen its team and infrastructure as we ramped up reinsurance activities of fixed annuities, growing total assets.

“We look forward to continuing the progress made into 2023.”