Mount Logan Capital Inc.MLCI
Mount Logan Capital Inc. Goodwill & Intangibles Disclosure
Note 11. Goodwill and intangible assets
Goodwill
The carrying amount of goodwill by reportable segment was $1.0 million for Asset Management as of both December 31, 2025 and December 31, 2024, which is included within “Other assets” in the Consolidated Statements of Financial Position. The carrying amount of goodwill was $30.2 million and $55.7 million for Insurance Solutions as of December 31, 2025 and December 31, 2024 respectively. The Company performed its annual goodwill impairment assessment as of October 1, 2025 for its reporting units, LTC and MYGA under Insurance Solutions. As of such date, it was noted that the carrying value of the LTC reporting unit exceeded its estimated fair value, which resulted in recording a $25.5 million charge to fully impair the goodwill associated with the LTC reporting unit. The excess carrying value of the LTC reporting unit was primarily driven by an increase in its net assets resulting from lower recorded long‑term care (LTC) reserves following a change in the accounting basis from IFRS to U.S. GAAP. Under U.S. GAAP, the revised reserving methodology reduced the level of recognized LTC reserves, thereby increasing the carrying value of the reporting unit. Consequently, the carrying value exceeded the estimated fair value as of the measurement date, resulting in the impairment. In contrast, the fair value of MYGA reporting unit exceeded its respective carrying value by 30.6%.
The table below presents the changes in the carrying amount of goodwill by reporting units in Insurance Solutions for the year ended December 31, 2025 and December 31, 2024.
| Reporting Unit | ||||||||||||||||||||
| At December 31, 2025 | MYGA | LTC | Total | |||||||||||||||||
| Goodwill, gross | $ | 30,193 | $ | 25,504 | $ | 55,697 | ||||||||||||||
Accumulated impairment losses¹ | — | (25,504) | (25,504) | |||||||||||||||||
| Goodwill, net | 30,193 | — | 30,193 | |||||||||||||||||
| Goodwill, net as of December 31, 2024 | $ | 30,193 | $ | 25,504 | $ | 55,697 | ||||||||||||||
| Impairment losses | — | (25,504) | (25,504) | |||||||||||||||||
| Goodwill, net as of December 31, 2025 | $ | 30,193 | $ | — | $ | 30,193 | ||||||||||||||
(1)Accumulated impairment losses include the $25.5 million impairment loss recognized in relation to the LTC reporting unit during the fourth quarter of 2025 and there was no impairment loss recognized during the year ended 2024.
Intangible assets
Intangible assets consist of the following as of December 31, 2025 and December 31, 2024:
| December 31, 2025 | ||||||||||||||||||||||||||
| Gross carrying amount | Accumulated amortization | Accumulated impairment | Net carrying amount | |||||||||||||||||||||||
| Asset Management | ||||||||||||||||||||||||||
| Intangible assets — indefinite life | ||||||||||||||||||||||||||
| Investment management contracts | $ | 19,204 | $ | — | $ | (19,204) | $ | — | ||||||||||||||||||
Profit sharing interest¹ | 11,236 | — | (3,045) | 8,191 | ||||||||||||||||||||||
| Intangible assets — definite life | ||||||||||||||||||||||||||
| Investment management contracts | 11,544 | (8,381) | (393) | 2,770 | ||||||||||||||||||||||
| Total intangible assets — Asset Management | $ | 41,984 | $ | (8,381) | $ | (22,642) | $ | 10,961 | ||||||||||||||||||
| Insurance Solutions | ||||||||||||||||||||||||||
| Intangible assets — indefinite life | ||||||||||||||||||||||||||
| State insurance licenses | 2,444 | — | — | 2,444 | ||||||||||||||||||||||
| Total intangible assets — Insurance Solutions | $ | 2,444 | $ | — | $ | — | $ | 2,444 | ||||||||||||||||||
_______________
(1)On July 15, 2025, the merging of Logan Ridge Finance Corporation (“Logan Ridge”) into Portman Ridge Finance Corporation (“Portman Ridge” or “Portman”) closed, with the new combined entity renamed to BCP Investment Corporation (“BCIC”). Upon the close of this merger, the Company’s investment management agreement with Logan Ridge was terminated, resulting in an impairment loss for the full carrying amount of the investment management agreement. Upon termination of the investment management agreement with Logan Ridge, the Company acquired a profit-sharing agreement with the owner of Sierra Crest Investment Management (“SCIM”) which is the manager of BCIC, for no cash consideration. The acquisition of the profit-sharing agreement is presented as a gain that offsets the accumulated impairment loss on the Logan Ridge investment management agreement, in “Amortization and impairment of intangible assets” on the Consolidated Statements of Operations. The profit-sharing agreement was determined to be an indefinite-lived intangible asset given the Company expects SCIM to be the investment manager of BCIC indefinitely, and for the owner of SCIM to hold its equity in SCIM indefinitely. During the fourth quarter of 2025, the valuation of the profit-sharing agreement was refined for changes in assumptions, resulting in a decrease in value that was recognized as an impairment loss on the agreement.
| December 31, 2024 | ||||||||||||||||||||||||||
| Gross carrying amount | Accumulated amortization | Accumulated impairment | Net carrying amount | |||||||||||||||||||||||
| Asset Management | ||||||||||||||||||||||||||
| Intangible assets — indefinite life | ||||||||||||||||||||||||||
| Investment management contracts | $ | 19,204 | $ | — | $ | — | $ | 19,204 | ||||||||||||||||||
| Intangible assets — definite life | ||||||||||||||||||||||||||
| Investment management contracts | 13,379 | (4,808) | (1,835) | 6,736 | ||||||||||||||||||||||
| Total intangible assets — Asset Management | $ | 32,583 | $ | (4,808) | $ | (1,835) | $ | 25,940 | ||||||||||||||||||
| Insurance Solutions | ||||||||||||||||||||||||||
| Intangible assets — indefinite life | ||||||||||||||||||||||||||
| State insurance licenses | 2,444 | — | — | 2,444 | ||||||||||||||||||||||
| Total intangible assets — Insurance Solutions | $ | 2,444 | $ | — | $ | — | $ | 2,444 | ||||||||||||||||||
The following table represents estimated intangible amortization expense as of December 31, 2025:
| As of | December 31, 2025 | |||||||
| 2026 | $ | 1,721 | ||||||
| 2027 | 976 | |||||||
| 2028 | 73 | |||||||
| 2029 | — | |||||||
| 2030 and thereafter | — | |||||||
| Total | $ | 2,770 | ||||||
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.