Mount Logan Capital : Q1 2024 Management Discussion & Analysis

MANAGEMENT'S DISCUSSION AND ANALYSIS for the three months ended March 31, 2024 and 2023

Management's Discussion and Analysis

The Management's Discussion and Analysis ("MD&A") for Mount Logan Capital Inc. (the "Company," "we," "us," or "our") is provided to enable readers to assess our financial condition and results of operations as at and for the three months ended March 31, 2024, compared with the corresponding period in the prior fiscal year. This MD&A should be read in conjunction with the unaudited condensed interim Consolidated Financial Statements ("Interim Consolidated Financial Statements") of the Company for the three months ended March 31, 2024 and accompanying notes thereto as well as the audited annual consolidated financial statements of the Company for the year ended December 31, 2023 and the annual MD&A for the year ended December 31, 2023 . This MD&A is dated May 9, 2024.

Unless otherwise indicated, all amounts are stated in thousands of United States dollars ("USD"), except for shares and per share data, and have been derived from consolidated financial statements of the Company prepared in accordance with either International Accounting Standard IAS 34 Interim Financial Reporting ("IAS 34") and/or International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.

Additional information about the Company, including our audited annual consolidated financial statements and our annual information form dated March 14, 2024 in respect of the year ended December 31, 2023 (the "Annual Information Form") are available on SEDAR+ at www.sedarplus.ca.

Caution Regarding Forward-Looking Statements

Certain information contained in this MD&A constitutes forward-looking information, which is information regarding possible events, conditions or results of operations of the Company that is based upon assumptions about future economic conditions and courses of action and which is inherently uncertain. All information other than statements of historical fact may be forward-looking information. Forward-looking information may include, but is not limited to, statements with respect to our objectives and priorities for fiscal 2023 and beyond, our strategies or future actions, expectations for our financial condition, capital position or share price, the regulatory environment in which we operate, the results of, or outlook for, our operations or for the Canadian and U.S. economies, and the COVID-19 pandemic, and include statements made by our management. Forward-looking statements are typically identified by words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "might", "project", "predict", "potential", "target", "intend", "would", "could", "should", "believe" and similar words or phrases (including negative variations) or grammatical variations thereof. Forward-looking information contained in this MD&A includes, without limitation, statements and information about SCIM (as defined below) remaining the investment adviser of ACIF (as defined below) following each one year renewal period following its initial two-year term and that the Company will continue to receive the net economic benefit derived by SCIM under the ACIF Advisory Agreement (as defined below);ML Management (as defined below) remaining the collateral manager of the CLOs (as defined below) and the investment manager of Logan Ridge (as defined below); the Company's plans to extend the maturity of its CLOs in light of expiring reinvestment periods or launch new collateralized loan obligations to create new incomes streams; the Company's plans to scale the business of Logan Ridge through strategic acquisitions; the expected benefits to the Company of the acquisition of Ability Insurance Company ("Ability") including, without limitation, a significant increase in the Company's assets under management, the generation of recurring management fees and increased income through insurance earnings as the Company transitions to a hybrid asset management business and insurance solutions model; Ability's plans to secure additional surplus capital and increase its risk based capital; our expansion from a lending-oriented credit platform to an alternative asset management company and insurance solutions provider and the related asset management fee income; the expected benefits to the Company as a result of the Ovation Acquisition (as defined below); the ongoing impact of the implementation of new accounting standards, including IFRS 17; our expectations regarding anticipated investment activities and results, financing activities, the sufficiency of taxable income to support deferred tax assets and other factors that may impact our operating results, and the performance of global capital markets and interest rates, including expected interest rate cuts in fiscal 2024.

Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Readers are cautioned not to place undue reliance on the forward-looking information contained in this MD&A, as a number of factors - many of which are beyond our control and the effects of which are difficult to predict - could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking information. Some of the risks and other factors that could cause results to differ materially from those expressed in the forward-looking information contained in this MD&A include, but are not limited to: risks relating to investment performance and our ability to generate taxable income from operations, market fluctuations, the strength of the Canadian, U.S. and other economies, foreign exchange fluctuations, political and economic conditions in the countries in which the interests of the Company's portfolio investments are located, the continued impact of the novel coronavirus; the continued impact of global political conflicts including the Russia-Ukraine conflict and the Israel-Palestine conflict, that the ACIF Advisory Agreement is subject to approval every year following its initial two-year term by ACIF's board of trustees, including a majority of its independent trustees, and such approvals may not be obtained, the risk that collateral management agreements in respect of the CLOs may be terminated at the direction of holders of a specified supermajority in principal amount of the notes issued by the CLO, the risk that the assets held by the CLOs are prepaid or go into default resulting in a reduction in collateral management fees, the risk that the expected benefits of the Ovation acquisition may not be realized, the investment advisory agreement in respect of Logan Ridge is subject to approval every year following its initial two-year term by Logan Ridge's board of directors, including a majority of its independent directors, and such approvals may not be obtained, the Company may not be able to identify and complete strategic acquisitions through Logan Ridge in order to scale the business, the management of assets of Ability may not generate recurring management fees for ML Management as currently contemplated and the Company may not achieve sufficient income through

Mount Logan Capital Inc. March 31, 2024 MD&A 1

MANAGEMENT'S DISCUSSION AND ANALYSIS for the three months ended March 31, 2024 and 2023

insurance earnings to provide meaningful diversification having regard to the Company's business model, and other risks included elsewhere in this MD&A under the heading "Risks Factors" and in the Annual Information Form and other public disclosure documents filed with certain Canadian securities regulatory authorities and available under the Company's profile at www.sedarplus.ca. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove to be incorrect, actual results may vary materially from those described in this MD&A as anticipated, believed, estimated or expected.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Although the Company has attempted to identify important factors that could cause actual events and results to differ materially from those described in the forward-looking information, there may be other factors that cause events or results to differ from those intended, anticipated or estimated. The forward-looking information contained in this MD&A is provided as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as otherwise required by law. All of the forward- looking information contained in this MD&A is expressly qualified by this cautionary statement.

Nature of Business

Overview

The Company is an alternative asset management and insurance solutions company that is focused on public and private debt securities in the North American market and the reinsurance of annuity products, primarily through its wholly-owned subsidiaries.

As an asset management firm, the Company, through its wholly-owned subsidiary, Mount Logan Management LLC ("ML Management"), may earn management fees, incentive fees, and servicing fees for providing investment management, monitoring and other services to investment vehicles and advisers. ML Management is registered as an investment adviser with the United States Securities and Exchange Commission under the Investment Advisors Act of 1940, as amended, and is registered to act in an investment advisory role for clients in the United States.

Our insurance business is operated by Ability, which we acquired on October 29, 2021. Ability is a Nebraska domiciled insurer and reinsurer of long-term care policies. As part of the transaction, we invested $10.0 million of capital into Ability to strengthen its balance sheet and launched a platform for the reinsurance of annuities. As a result of this acquisition, Ability's assets and operations have been consolidated with our operating results from and after October 29, 2021. Accordingly, comparability of our results for periods prior and subsequent to the Ability transaction may be limited.

The common shares of the Company trade on Cboe Canada under the symbol "MLC".

Our Business

Our reporting segments include asset management and insurance. The asset management segment reflects our operations other than in respect of Ability and the insurance segment represents Ability's operations.

We have successfully diversified across multiple credit-oriented vehicles, as discussed below, all of which are underpinned by recurring fee related earnings and permanent or long duration capital.

Asset Management - Advisory

Beginning in 2020, the Company expanded its focus from a lending-oriented credit platform to an alternative asset management platform in the United States. Through its subsidiaries, the Company, acquired certain investment management contracts and/or the economic benefit thereof thereby providing a growing stream of asset management fee income.

On October 30, 2020, Sierra Crest Investment Management LLC ("SCIM"), an affiliate of BC Partners Advisors L.P. ("BC Partners"), purchased certain assets from Resource America, Inc. and became the investment adviser of the Alternative Credit Income Fund (formerly, Resource Credit Income Fund) ("ACIF") pursuant to the new ACIF advisory agreement (the "ACIF Advisory Agreement") entered into between SCIM and ACIF. In connection with the acquisition, the Company agreed to advance to SCIM the amount of up to $15.0 million to be used by SCIM to fund the $13.0 million purchase price (the "SCIM Facility"). On closing of the acquisition, the Company advanced $12.0 million to SCIM pursuant to the SCIM Facility with a balance of up to an additional $3.0 million available for subsequent advances. In addition, the Company and SCIM entered into a services agreement (the "SCIM Services Agreement") pursuant to which the Company provides certain administrative services to SCIM in respect of ACIF. On December 17, 2020, the SCIM Services Agreement was amended to be between the Company's wholly-owned subsidiary, MLC US Holdings LLC ("US Holdings"), and SCIM. Under the SCIM Services Agreement, in exchange for the administrative services provided, SCIM pays to US Holdings, on a quarterly basis, an amount equal to the aggregate base management and incentive fees received by SCIM from ACIF in respect of such quarter, net of debt service, a quarterly fee to be retained by SCIM comprised of a specified amount, plus an allocable portion of the compensation of SCIM's investment professionals in connection with their performance of investment advisory services for ACIF (collectively, the "Retained Benefits"). In addition, SCIM is reimbursed by US Holdings quarterly for certain expenses it incurs in connection with the investment advisory services provided to ACIF. Pursuant to this arrangement, US Holdings receives the net economic benefit derived by SCIM under the ACIF Advisory Agreement subject to the holdback of the Retained Benefits and expense reimbursements.

On November 12, 2020, the Company, through its wholly-owned subsidiary, ML Management completed its acquisition of the rights of Garrison Investment Management LLC ("GIM") and other sellers (collectively, "GARS Sellers") under certain investment management agreements, the general partnership interests of the GARS Sellers under certain partnership agreements and the rights of the GARS Sellers under certain collateral management agreements relating to Garrison Funding 2018-1 LP and Garrison MML CLO 2019-1 LP (collectively, the "ML CLOs") for a purchase price of $3.0 million (the "ML CLO Acquisition"). ML Management, as the investment manager of the ML CLOs, receives management

Mount Logan Capital Inc. March 31, 2024 MD&A 2

MANAGEMENT'S DISCUSSION AND ANALYSIS for the three months ended March 31, 2024 and 2023

fees based on aggregate gross assets under management, paid quarterly, and subject to various reductions based on caps, transaction fees, and fee-sharing arrangements. Following the completion of the ML CLO Acquisition, the names of Garrison Funding 2018-1 LP and Garrison MML CLO 2019-1 LP were changed to Mount Logan Funding 2018-1 LP and Mount Logan MML CLO 2019-1 LP, respectively.

On July 1, 2021, the Company, through ML Management, completed its acquisition of certain assets from Capitala Investment Advisors, LLC ("CIA") (the "Capitala Acquisition") and ML Management became the investment adviser of Logan Ridge Finance Corporation ("Logan Ridge," formerly, Capitala Finance Corp.), a U.S. publicly traded business development company whose common stock is listed on NASDAQ. ML Management, as the investment adviser of Logan Ridge, receives a fee for investment advisory and management services consisting of two components - a 1.75% annual base management fee based upon gross assets and an incentive fee tied to performance. The incentive fee consists of the following two parts:

1. The first part of the incentive fee is calculated and payable quarterly in arrears based on Logan Ridge's pre-incentive fee net investment income for the immediately preceding calendar quarter. For this purpose, pre-incentive fee net investment income means interest income, dividend income, and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, diligence, and consulting fees or other fees that we receive from portfolio companies) accrued during the calendar quarter, minus our operating expenses for the quarter (including the base management fee, expenses payable under Logan Ridge's administration agreement to its administrator, and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with pay-in-kind interest and zero coupon securities), accrued income that Logan Ridge has not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, computed net of all realized capital losses or unrealized capital appreciation or depreciation. Pre-incentive fee net investment income, expressed as a rate of return on the value of Logan Ridge's net assets at the end of the immediately preceding calendar quarter, is compared to a hurdle of 2.0% per quarter (8.0% annualized). ML Management receives an incentive fee with respect to the pre-incentive fee net investment income in each calendar quarter as follows:
2. 1. no incentive fee in any calendar quarter in which the pre-incentive fee net investment income does not exceed the hurdle of 2.0%;
   2. 100% of the pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle but is less than 2.5% in any calendar quarter (10.0% annualized). This portion of the pre-incentive fee net investment income (which exceeds the hurdle but is less than 2.5%) is referred to as the "catch-up." The "catch-up" is meant to provide ML Management with 20% of the pre-incentive fee net investment income as if a hurdle did not apply if this net investment income exceeds 2.5% in any calendar quarter; and
   3. 20% of the amount of the pre-incentive fee net investment income, if any, that exceeds 2.5% in any calendar quarter (10.0% annualized) (once the hurdle is reached and the catch-up is achieved, 20% of all pre-incentive fee investment income thereafter is allocated to ML Management).
3. The second part of the incentive fee is determined and payable in arrears as of the end of each calendar year, commencing on December 31, 2021, and will equal 20.0% of Logan Ridge's realized capital gains, if any, on a cumulative basis with respect to each of the investments in Logan Ridge's portfolio from the fiscal quarter ending on or immediately prior to July 1, 2021 through the end of each calendar year beginning with the calendar year ending December 31, 2021, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis from September 30, 2021 through the end of each calendar year beginning with the calendar year ending December 31, 2021, less the aggregate amount of any previously paid capital gain fees under the investment advisory agreement. Any realized capital gains, realized capital losses and unrealized capital depreciation with respect to Logan Ridge's portfolio as of the end of the fiscal quarter ending on or immediately prior to July 1, 2021 will be excluded from the calculations of the capital gains fee. In the event that the investment advisory agreement shall terminate as of a date that is not a calendar year end, the termination date shall be treated as though it were a calendar year end for purposes of calculating and paying a capital gains fee.

On January 1, 2022, the Company, through ML Management, and other purchasers related to ML Management (collectively, the "GIM Purchasers") entered into an asset purchase agreement with GIM and other sellers (collectively, the "GIM Sellers") with respect to the acquisition by the GIM Purchasers of the rights and interests of the GIM Sellers under a certain investment agreement relating to Garrison Laurel Funding LP ("GLF"), the general partnership interest under a certain partnership agreement and the rights of the GIM Sellers under certain financing arrangements (the "Laurel Transaction"). In addition, Mount Logan Bluebird Funding LP ("ML Bluebird Funding"), a newly formed entity, acquired all the assets and assumed all the liabilities of Garrison Bluebird Funding LP effective as of the closing date (the "Bluebird Transaction" and together with the Laurel Transaction, the "Bluebird Laurel Transaction"). The Bluebird Laurel Transaction closed on January 1, 2022, and ML Management became the investment manager of GLF and ML Bluebird Funding. In connection with the closing, GLF changed its name to Mount Logan Laurel Funding LP ("ML Laurel Funding"). As currently structured, ML Management does not expect to receive any management fees from ML Bluebird Funding or ML Laurel Funding. The Bluebird Laurel Transaction strategically positions the Company's platform to grow the assets it manages.

Mount Logan Capital Inc. March 31, 2024 MD&A 3

MANAGEMENT'S DISCUSSION AND ANALYSIS for the three months ended March 31, 2024 and 2023

On April 22, 2022, the Company, through ML Management, entered into an investment management agreement with each of Cornhusker Funding 1A LLC, Cornhusker Funding 1B LLC, and Cornhusker Funding 1C LLC (collectively, the "Cornhusker CLOs" and together with the ML CLOs, the "CLOs"). ML Management, as the investment manager, does not receive any management fees from the Cornhusker CLOs; however, the Company, through Cornhusker Feeder LLC ("Cornhusker Feeder"), a newly-formed indirect wholly-owned subsidiary of the Company, and Ability, receives economic benefits through their debt and/or equity holdings in the Cornhusker CLOs.

On May 14, 2022, the Company, through ML Management, entered into an investment advisory agreement with Opportunistic Credit Interval Fund ("OCIF"), a closed-end, diversified management investment company, pursuant to which ML Management provides certain investment advisory services to OCIF and in consideration of the advisory services provided, ML Management is entitled to a fee consisting of two components - a 1.25% annual base management fee based upon gross assets and an incentive fee tied to performance. The incentive fee is calculated and payable quarterly in arrears based on OCIF's pre-incentive fee net investment income for the immediately preceding calendar quarter. For this purpose, pre-incentive fee net investment income means, interest income, dividend income and any other income (including any other fees, such as commitment, origination, structuring, diligence and consulting fees or other fees that OCIF receives from portfolio companies) accrued by OCIF during the calendar quarter, minus OCIF's operating expenses for the quarter (including the base management fee, expenses payable under OCIF's administration agreement to its administrator, and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with pay-in-kind interest and zero coupon securities), accrued income that OCIF has not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Pre-incentive fee net investment income, expressed as a rate of return on the value of OCIF's net assets at the end of the immediately preceding calendar quarter, will be compared to a hurdle of 1.50% per quarter (6.0% annualized).

ML Management receives an incentive fee with respect to the pre-incentive fee net investment in each calendar quarter as follows:

1. no incentive fee in any calendar quarter in which the pre-incentive fee net investment income does not exceed the hurdle of 1.50%;
2. 100% of the pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle but is less than 1.7647% in any calendar quarter (7.0% annualized). This portion of the pre-incentive fee net investment income (which exceeds the hurdle but is less than 1.7647%) is referred to as the "catch-up." The "catch-up" is meant to provide ML Management with 15% of OCIF's pre-incentive fee net investment income as if a hurdle did not apply if this net investment income exceeds 1.7647% in any calendar quarter; and
3. 15% of the amount of OCIF's pre-incentive fee net investment income, if any, that exceeds 1.7647% in any calendar quarter (7.0% annualized) (once the hurdle is reached and the catch-up is achieved, 15% of all pre-incentive fee net investment income thereafter is allocated to ML Management).

ML Management agreed to waive its management fees (excluding any incentive fee) and to pay or absorb the ordinary operating expenses of OCIF to the extent that its management fees plus the OCIF's ordinary annual operating expenses exceed 2.5% per annum of OCIF's average daily net assets attributable to Class I shares until August 30, 2023. This waiver has been extended until February 1, 2025.

On April 29, 2022, ML Management seeded OCIF $0.1 million. On October 5, 2022, ML Management invested an additional $4.0 million into OCIF.

On August 17, 2022, the Company, through ML Management, entered into an investment sub-advisory agreement with First Trust Private Credit Fund (the "First Trust Fund") and First Trust Capital Management L.P. (the "First Trust Advisor") acts as the investment advisor. ML Management provides certain supervision and oversight of the advisor and the board of trustees of the First Trust Fund. ML Management, as the investment sub-adviser is entitled to receive a monthly fee equal to 1% of the sub-advised assets' average daily net assets.

On May 2, 2023, ML Management, completed the first phase of a series of transactions under its membership interest and asset purchase agreement (the "Ovation Purchase Agreement") with Ovation Partners, LP (the "Ovation Advisor"), a Texas-basedspecialty-finance focused asset manager. Per the terms of the Ovation Purchase Agreement, the Company offered employment to certain employees of Ovation Advisor in order to permit Ovation Adviser to continue to provide the same investment advisory and research services to the Ovation Alternative Income Fund LP ("OAIF") and the other investment advisory clients of Ovation Adviser and its affiliates pending the completion of the Ovation Acquisition. In exchange for the use of these employees, Ovation Advisor commenced paying ML Management 100% of the management fees of OAIF, which included both management and incentive fees.

On July 5, 2023, the Company completed the remaining transactions under the Ovation Purchase Agreement pursuant to which the Company acquired all of the membership interests of Ovation Fund Management II LLC ("Ovation") and certain assets from the Ovation Advisor (the "Ovation Acquisition"), and in connection therewith ML Management became the investment advisor to the platform. Ovation's platform is focused on investments in commercial lending, real estate lending, consumer finance and litigation finance. As partial consideration for the Ovation Acquisition, the Company issued an aggregate of 3,186,398 common shares at a deemed price of C$2.8314 per share. On closing of the Ovation Acquisition, Ovation's line of credit remained in place and had an outstanding balance of $1.8 million. Management of Ovation's platform is part of the Company's asset management segment.

Ovation receives fees from OAIF and Ovation Alternative Income Fund-A LP ("OAIF-A").

Mount Logan Capital Inc. March 31, 2024 MD&A 4

MANAGEMENT'S DISCUSSION AND ANALYSIS for the three months ended March 31, 2024 and 2023

ML Management, as the investment advisor of Ovation, receives an incentive fee and management fees as follows:

1. Ovation receives fees from OAIF, which consists of two components-the OAIF Base Management Fee and the OAIF Incentive Fee. The OAIF Base Management Fee is calculated monthly, due and payable quarterly in arrears, and represents an amount equal to 0.125% of the net assets of OAIF on the last day of the preceding month. The OAIF Incentive Fee is calculated monthly, due and payable quarterly in arrears, and calculated as ten percent (10%) of pre-incentive fee distributable income amounts.
2. Ovation receives fees from OAIF-A, which consists of two components-theOAIF-A Base Management Fee and the OAIF-A Incentive Fee. The OAIF-A Base Management Fee is calculated monthly, due and payable monthly in arrears, and represents an amount equal to 0.125% of the net assets of OAIF-A on the last day of the preceding month, plus capital contributions by limited partners to OAIF-A, plus or minus (if negative), the accrued and unpaid corporate tax expense as of the last day of the previous month. The OAIF-A Incentive Fee is calculated monthly, due and payable quarterly in arrears, and calculated as ten percent (10%) of pre-incentive fee distributable income amounts. If pre-incentive fee distributable income amounts do not exceed zero percent (0%) in any fiscal quarter, such shortfall (a "High Watermark Shortfall") will carry forward to subsequent quarters.

Neither the OAIF Incentive Fee nor OAIF-A Incentive Fee is payable to Ovation in any fiscal quarter in which a High Watermark Shortfall exists.

The following is a list of the investment vehicles managed by subsidiaries of the Company:

• Cornhusker Funding 1A LLC(1)
• Cornhusker Funding 1B LLC(1)
• Cornhusker Funding 1C LLC(1)
• First Trust Private Credit Fund
• Logan Ridge Finance Corporation
• Mount Logan Bluebird Funding LP(2)
• Mount Logan Funding 2018-1 LP ("2018-1 CLO")
• Mount Logan Laurel Funding LP(2)
• Mount Logan Middle Market Funding LP
• Mount Logan Middle Market Funding A LP
• Mount Logan Middle Market Funding II LP
• Mount Logan Middle Market Funding II A LP
• Mount Logan MML CLO 2019-1 LP
• Opportunistic Credit Interval Fund
• Ovation Alternative Income Fund, LP
• Ovation Alternative Income Fund-A, LP

Notes:

1. The Company, through its wholly-owned subsidiaries, Cornhusker Feeder LLC and Ability, receives economic benefits through its debt and/or equity holdings in the Cornhusker CLOs.
2. As currently structured, ML Management does not expect to receive any management fees from ML Bluebird Funding LP or Mount Logan Laurel Funding LP. The management of these funds by ML Management strategically positions the Company's platform to grow the assets it manages.

Asset Management - Loans

The Company, directly and through its subsidiaries, focuses on investing in public and private debt securities in North America. The Company actively sources, evaluates, underwrites, manages, monitors, and primarily invests in loans, debt securities, and other credit-oriented instruments that present attractive risk-adjusted returns and present low risk of principal impairment through the credit cycle.

The Company applies rigorous and deep due diligence to the credit opportunities it assesses. Priorities include establishing downside protection and principal preservation through financial and structural protections, seeking to generate attractive returns utilizing the skill and experience of management, and leveraging the expertise and network of management.

The sourcing, negotiation and documentation of highly structured investments by management of the Company permits the construction of a diversified portfolio of investments through the use of flexible and innovative loan strategies.

While focused on senior secured middle-market credit, depending on market conditions, the Company may evaluate employing a variety of credit investing strategies as part of its investment program. These could include leveraged yield strategies, private and mezzanine lending and structured equity, dislocated structured credit/regulatory capital investments, and other credit-oriented investments as further discussed below:

Leveraged Yield Strategies

• Low leveraged bank loan funds: employing various strategies to invest in primarily secured bank loans with low loan-to-value metrics and selective and prudent financing at the asset level. This is a strategy typically employed during periods of market or sector dislocation or when an individual company's loans do not reflect true fundamental value.

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MANAGEMENT'S DISCUSSION AND ANALYSIS for the three months ended March 31, 2024 and 2023

• Synthetic baskets: investments in par or near-par performing bank loans via total return swaps or similar financing structures. Private and Mezzanine Lending and Structured Equity
• Private and mezzanine lending: providing creative financing solutions to borrowers with custom documentation. Borrowers in the middle-market seek resourceful financing partners that have industry expertise, can provide certainty of execution, and can transact on an expedited timeline.
• Structured equity: investing in minority structured convertible preferred equity with significant downside protection through company selection and robust negative controls.

Dislocated Structured Credit/Regulatory Capital

• Primary and secondary structured products: opportunistic investments in non-traditional credit instruments with varying counterparty credit risk.
• Regulatory capital relief: structured financing solutions to mitigate regulatory capital constraints for borrowers. Rising regulatory capital requirements for financial institutions create an opportunity for non-traditional capital providers to structure capital solution programs aimed at mitigating banks' risk of near-term capital losses in return for insurance-like payments on first loss pieces assumed by financial investors.

Investments are made and are expected to be made primarily in developed markets with a focus on North America although the Company may invest in markets outside of North America if the Company identifies investment opportunities that offer particular value.

Investment Restrictions

The Company conducts its activities within the general parameters of its investment objective and strategy but subject to certain specific restrictions. In pursuing its investment strategy, the Company generally aims to adhere to the following investment restrictions:

• Diversification - the net amount invested by the Company in the investments of any one issuer (on a look through basis) will not exceed 20% of the portfolio of the Company, as determined at the time of such investment other than securities issued or guaranteed by the government of Canada, the government of the United States or a province, state or territory thereof.
• Foreign Exposure - the net amount invested by the Company in securities outside of Canada and the United States will not exceed 50% of the net asset value of the Company, as determined at the time of such investment.
• Liquidity - the nature of the Company's business allows for investments in public and private securities, and there are no specific restrictions on the liquidity of the assets in which the Company may invest. However, management of the Company will seek to ensure that the Company's investment portfolio has sufficient liquidity to satisfy any borrowing obligations, to manage the dividend policy, if any, adopted by the board of directors (the "Board") of the Company from time to time and any share buy- back arrangements.
• Hedging - the Company may use derivatives to hedge credit risk, its exposure to changes in interest rates and currency fluctuations and to gain exposure to individual securities and markets instead of directly buying the securities. The Company may use treasury futures and/or government bonds to hedge against changes in interest rates. The Company may use credit default swaps and credit default indices to hedge credit risk.

Loan Monitoring and Risk Assessment

During 2020 and into 2021 until the acquisition of Ability, the number of loans in the Company's loan portfolio decreased as part of the Company's continued expansion of its focus from a lending-oriented credit platform to an alternative asset management platform in the United States. In December 2021, the Company divested a majority of its loan portfolio warehoused for the 2018-1 CLO, a collateral loan obligation fund of which ML Management is the investment manager.

As of March 31, 2024, other than the Company's legacy debt holdings in Cline Mining Corporation ("Cline") which the Company has marked as nil realizable value on its books as of the date of this MD&A, the Company's asset management segment loan portfolio consisted of $13.6 million advanced as a secured loan by the Company to SCIM.

Interest is typically paid quarterly or semi-annually on the Asset Management Segment Loans and the Insurance Segment Loans (as defined and described below) (collectively, the "Loans") and principal repayments are typically bullet in nature at maturity. As of the date of this MD&A, there have been negligible defaults in respect of the Loans and predominantly all borrowers in respect of the Loans remain current on their interest payments.

As part of the Company's quarterly monitoring and valuation process for its Loans, the Company maintains a "watch list" and assigns a risk rating of 1-5 for each Loan (other than the SCIM Facility) as an internal metric to gauge potential credit risk (1 being the lowest level of risk; 5 being the highest level of risk, with a risk rating of 1 or 2 indicating that the investment is performing in-line with or above expectations). The risk rating scale and criteria are outlined below:

Risk Rating	Criteria

Mount Logan Capital Inc. March 31, 2024 MD&A 6

MANAGEMENT'S DISCUSSION AND ANALYSIS for the three months ended March 31, 2024 and 2023

1. Borrower is performing above expectations and the trends and risk factors since origination or acquisition are generally favorable
2. Borrower is generally performing as expected and the risk factors are similar to the risk at the time of origination or acquisition
3. Borrower performing below expectations and the risk factors increased since origination or acquisition
4. Borrower performing materially below expectations and the risk factors increased materially since origination or acquisition. Borrower generally breaches debt covenants and loan payments(s) may be past due
5. Borrower performing significantly below expectations and the risk factors increased significantly since origination or acquisition. Borrower breached most or all debt covenants, loan payments(s) are significantly past due. Principal not expected to be repaid in full

As of the date of this MD&A, all of the Loans (other than the SCIM Facility, which has not been rated) are rated either 1 or 2. None of the Loans are on the watchlist other than the Company's legacy debt holdings in Cline, which had a direct offset in the payment on the CVRs (as hereinafter defined) until the expiry and cancellation of the CVRs on October 19, 2023.

On October 19, 2023, the Company's contingent value rights ("CVRs") issued on October 19, 2018 expired in accordance with their terms and were cancelled and accordingly the possibility of further distributions in respect of the CVRs ceased. As of October 19, 2023, the Company had distributed an aggregate of C$1.6 million to the holders of CVRs and the Company continued to hold its debt and equity securities of Cline.

Cline's primary asset are the NECC Notes (as hereinafter defined) issued to it by New Elk Coal Company ("NECC"). On February 21, 2023, NECC as well the guarantor under the NECC Notes filed for Chapter 11 protection. The value of securities in Cline held by its various funds were written down to reflect the increased uncertainty of future cash flows to Cline from the NECC Notes. The CVR's are currently marked as nil realizable value. Given the CVRs have expired and were cancelled, the possibility of further distributions in respect of the CVRs ceased. The Company continues to hold its debt and equity securities of Cline at a fair value of nil as at March 31, 2024.

On February 27, 2023, Marret Asset Management Inc. ("Marret Asset Management") announced that NECC and three other entities indirectly owned and controlled by Allegiance Coal Limited ("Allegiance"), including the guarantor of obligations of NECC to Cline under secured notes issued by NECC to Cline (the "NECC Notes"), which is Cline's primary asset, had filed for Chapter 11 protection on February 21, 2023 (the "NECC Bankruptcy"). On February 28, 2023, Marret Asset Management announced that it was taking an 82% write-down in the value of securities in Cline held by its various funds to reflect the increased uncertainty of future cash flows to Cline from the NECC Notes. As a result of the NECC Bankruptcy, there was an increased risk that no further events would occur prior to the expiry and cancellation of the CVRs on October 19, 2023 that would result in a possibly payment being made in respect of the CVRS, and no such event occurred prior to such expiry and cancellation. Accordingly, until the expiry and cancellation of the CVRs on October 19, 2023, the value, if any, of the CVRs was speculative, and the CVRs may ultimately have had no value and therefore the risk rating was rated at 5.

ML Management, a wholly-owned subsidiary of the Company, is the investment advisor to certain external investment vehicles, including collateralized loan obligations, business development companies and interval funds, each of which hold their own portfolio of loans. As the Company's economic interest is derived from the management of such vehicles, such underlying loans do not form part of the Company's loan portfolio.

Asset Management - Other

In December 2020, the Company, through its indirect wholly-owned subsidiary, MLCSC Holdings LLC acquired a minority stake in SCIM, which manages Portman Ridge Finance Corp., a United States business development company, and ACIF. The Company receives periodic distributions from SCIM and recognizes its share of profit or loss in SCIM.

Insurance

Our insurance business is operated by Ability, which we acquired in the fourth quarter of 2021. Ability's financial results are reported as the insurance segment which also includes the economic benefits of the Cornhusker CLOs

Ability is a Nebraska domiciled insurer and reinsurer of long-term care policies and annuity products. Upon closing of the acquisition of Ability, ML Management entered into an investment management agreement with Ability (the "Ability IMA") to manage certain of Ability's assets that are within the scope of ML Management's expertise in providing investment management advisory services (the assets of Ability managed by ML Management referred to herein as the "Managed Ability Portfolio"). The acquisition of Ability by the Company combines two products that the Company believes are, and will continue to be, in high demand - insurance solutions and asset management. The Company's acquisition of Ability brought additional capital, strengthening of the investment portfolio, stability and continuity of liability management, and new growth opportunities that will provide increased security to policyholders. The acquisition positioned the Company for a new stage of growth with a commitment for immediate and future capital, product diversification, asset management opportunities, de-risking legacy assets, and enhancing risk based capital ("RBC") ratios. The stronger capital base and alignment allows the Company to scale asset and liability origination for the benefit of Ability's policyholders as well as the Company and its shareholders.

Mount Logan Capital Inc. March 31, 2024 MD&A 7

MANAGEMENT'S DISCUSSION AND ANALYSIS for the three months ended March 31, 2024 and 2023

Pursuant to the Ability IMA, ML Management has the following rights, powers and authority in connection with its duties thereunder: (i) authority and power to invest and reinvest the Managed Ability Portfolio in investments, in accordance with predetermined guidelines; (ii) authority and power to, in its reasonable discretion, extend, renew and/or dispose of potential and existing investments within the Managed Ability Portfolio, and to make all decisions and take all actions necessary or convenient in respect of the origination, investigation, structuring, financing, acquisition, monitoring, syndication, and remarketing of investments and additional investments, in each case, in accordance with the predetermined guidelines; (iii) prepare, review and supervise the preparation and review of all agreements, certificates, amendments, notices, instruments, and other documents required to originate, acquire, manage, finance, syndicate, remarket or dispose of any investment or potential investment in the Managed Ability Portfolio; (iv) appoint sub-advisers to invest and reinvest the Managed Ability Portfolio in investments, in each case, in accordance with the predetermined guidelines; (v) originate, manage, service, administer and make collections on investments within the Managed Ability Portfolio; and (vi) perform other reasonable and customary actions deemed appropriate by ML Management in connection with the Managed Ability Portfolio. The Managed Ability Portfolio is held primarily in the United States and is predominantly comprised of USD-denominated assets based in the United States. As of March 31, 2024, the Managed Ability Portfolio is comprised of approximately $616.8 million of assets representing approximately 59% of Ability's total investment assets of $1,043.0 million investment assets or 100% excluding the modified coinsurance and funds withheld assets. The Company's insurance segment also includes a loan portfolio, and as of March 31, 2024, such loan portfolio consisted of approximately $289.3 million in loans to private companies and approximately $138.1 million of mortgage loans, totaling $427.4million (the "Insurance Segment Loans"), or approximately 41% of the entire portfolio. The Insurance Segment Loans are, collectively, of a nature such that Ability continues to satisfy its investment requirements in accordance with the state of Nebraska Insurers Investment Act. Pursuant to the Ability IMA, not all assets under management are fee earning; further, for fee-eligible assets, the basis for charging fees is not necessarily fair market value.

Ability's long-term care portfolio's morbidity risk has been largely reinsured to third-parties. Ability is also no longer insuring new long-term care risk and will continue to expand and diversify its business including through the reinsurance of annuity products which commenced in the second quarter of fiscal 2022.

Long-term care insurance policies reimburse policyholders a daily amount, upon meeting certain requirements, for services to assist with daily living as they age.

Annuities are a contract with an insurer where individuals agree to pay a certain amount of money, either in a lump sum or through installments, which entitles them to receive a series of payments at a future date.

Effective April 1, 2022, the Company, through Ability, closed a reinsurance agreement with Atlantic Coast Life Insurance Company ("ACL") pursuant to which the Company assumed a 20% quota share coinsurance of up to $150.0 million of premium of multi-year guaranteed annuity ("MYGA") policies. Effective July 1, 2022, Ability closed on an additional reinsurance agreement with Sentinel Security Life Insurance Company ("SSL") to assume a 20% quota share coinsurance of up to $100.0 million of premium of MYGA policies. These quota share coinsurance agreements were met as of July 10, 2023. On January 10, 2024, the Company, through Ability, amended the reinsurance agreement with ACL and with SSL, pursuant to which Ability will assume a 20% quota share coinsurance of premium of MYGA policies issued and approved on or after October 1, 2023.

Mount Logan Capital Inc. March 31, 2024 MD&A 8

MANAGEMENT'S DISCUSSION AND ANALYSIS for the three months ended March 31, 2024 and 2023

Recent Developments

Subsequent Events

On May 9, 2024, the Board declared a cash dividend in the amount of C$0.02 per common share to be paid on May 31, 2024 to shareholders of record on May 22, 2024.

Current environment updates

Uncertainty with respect to the economic effects of rising interest rates in response to inflation, the war between Russia and Ukraine, the Israeli-Palestinian conflict in the Middle East, the continued impact of the COVID-19 pandemic on businesses generally and other geopolitical events has introduced significant volatility in the financial markets, and the effect of the volatility could materially impact the Company's market risks, including those discussed in Note 18 of the interim consolidated financial statements for the three months ended March 31, 2024.

All of these impacts could negatively affect the Company's financial outlook, results and operations.

Future Outlook

The Company continues to expand its focus from a lending-oriented credit platform to an alternative asset management platform in the United States. Through its subsidiaries, the Company acquired certain investment management contracts and/or the economic benefit thereof thereby providing a growing stream of asset management fee income. The investment management agreements entered into will further generate steady recurring fee revenue and operating cash flow, which we expect to result in more capital and stronger margins and are expected to further grown the alternative asset management platform.

On July 5, 2023, the Company completed the Ovation Acquisition pursuant to which the Company acquired all of the membership interests of Ovation and certain assets from the Ovation Advisor, and in connection therewith ML Management became the investment advisor to the platform. Ovation's platform is focused on investments in commercial lending, real estate lending, consumer finance and litigation finance. In connection with the Ovation Acquisition, the Company established a formal office in Austin, Texas and retained the existing Ovation team, which is expected to further bolster the Company's presence in the United States.

The Company may consider extending the maturity date of its managed CLOs as the reinvestment period expires or have expired, and/or opportunistically launch new collateralized loan obligations, which would create new streams of management fee income.

Mount Logan Capital Inc. March 31, 2024 MD&A 9

MANAGEMENT'S DISCUSSION AND ANALYSIS for the three months ended March 31, 2024 and 2023

Key Performance Data

Earnings per Share

The quarter-over-quarter and year-over-year percentage changes in earnings per share ("EPS") are the Company's key measures for analyzing earnings growth.

Basic EPS was $0.51 for the three months ended March 31, 2024, an increase of $0.60 from $(0.09) for the three months ended December 31, 2023. Adjusted basic EPS was $0.54 for the three months ended March 31, 2024, an increase of $0.55 from $(0.01) for the three months ended December 31, 2023. Diluted EPS was $0.50 for the three months ended March 31, 2024, a increase of $0.59 from $(0.09) for the three months ended December 31, 2023. Adjusted diluted EPS was $0.54 for the three months ended March 31, 2024, an increase of $0.55 from $(0.01) for the three months ended December 31, 2023. The increase in EPS resulted primarily from an increase in the net insurance finance income in three months ended March 31, 2024 compared to the three months ended December 31, 2023. The increase in net insurance finance income in the three months ended March 31, 2024 was attributable to changes in risk-adjusted market interest rates. Risk-adjusted market interest rates increased during the three months ended March 31, 2024 in comparison to a decrease experienced during the three months ended December 31, 2023. Reported net income available to holders of common shares for the three months ended March 31, 2024 increased by $15.4 million quarter-over-quarter. See "Risk Factors" for details on how changes to IFRS 17 have had and could continue to have a material impact on our financial results.

Earnings per share (EPS) is calculated by dividing net income or loss attributable to common shareholders by the average number of common shares outstanding. Diluted earnings per share is calculated in the same manner, with further adjustments made to reflect the dilutive impact of instruments convertible into the Company's common shares. Adjusted EPS is calculated in the same manner using adjusted net income or loss.

Return on Equity

Reported return on equity ("ROE") was 22% for the three months ended March 31, 2024 and adjusted ROE was 24%, compared with (4.2)% and (0.6)%, respectively, for the three months ended December 31, 2023. Reported and adjusted ROE increased in three months ended March 31, 2024, primarily due to an increase in net insurance finance income due to interest rate changes. There was an increase of $15.4 million in reported net income available to holders of common shares and an increase of $14.2 million in adjusted net income available to holders of common shares for the three months ended March 31, 2024, compared to the three months ended December 31, 2023. Average common shareholder's equity increased $5.2 million or 9.7% from the three months ended December 31, 2023, primarily resulting from an increase in net insurance finance income due to interest rate changes.

Return on shareholders' equity (ROE) is calculated as net income or loss as a percentage of average shareholders' equity. Common shareholders' equity is comprised of common share capital, warrants, contributed surplus, deficit and cumulative translation adjustment. Adjusted ROE is calculated in the same manner using adjusted net income or loss.

Mount Logan Capital Inc. March 31, 2024 MD&A 10