v3.26.1
Income taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate
The effective income tax rate reflected in the Consolidated Statements of Operations varies from the United States and Canadian tax rates of 21.0 percent and 26.5 percent for the year ended December 31, 2025 (December 31, 2024 – 21.0 percent and 26.5 percent) for the items outlined in the following table.

Years Ended December 31,
2025202520242024
Income (loss) before taxes$(58,461)$(9,781)
Income tax rate ¹
21.0%26.5%
Income tax expense at statutory tax rate(12,277)21.0%(2,592)26.5%
State and local income taxes, net of federal (national) income tax effect 2
460 (0.8)%— —%
Foreign tax effects (Canada):—%
Statutory tax rate difference between Canada and the US (704)1.2 %(104)1.1%
Nondeductible Differences1,395 (2.4)%1,368 (14.0)%
Domestication capital gain 1
3,598 (6.2)%— —%
Partnership differences1,205 (2.1)%— —%
Foreign accrual property income impact786 (1.4)%2,947 (30.1)%
Net Operating Loss 3
(3,003)5.1 %— —%
Change in valuation allowances 4
13,329 (22.8)%(1,375)14.1%
Dividends Received Deduction(135)0.2 %— —%
Deferred True Up(2,059)3.5 %— —%
Other(209)0.4 %362 (3.8)%
Income tax expense (benefit)$2,386 (4.1)%$606 (6.2)%
_______________
(1)On September 12, 2025, pursuant to a Plan of Domestication, immediately prior to the Mergers, (i) Legacy Mount Logan domesticated from the Province of Ontario, Canada to the State of Delaware, (ii) immediately following step (i), Mount Logan converted to a limited liability company, and (iii) immediately following (ii), Mount Logan made an election to be treated as a corporation for U.S. federal income tax purposes (the “Domestication”). As a result of the Domestication and the completion of the Business Combination, the Company is subject to a statutory tax rate of 21% in the U.S. as compared to the 26.5% statutory Canadian corporate income tax rate applicable to Legacy Mount Logan prior to the Domestication.
(2)State taxes in Texas, California, Massachusetts, Minnesota, Georgia, New Jersey, Utah, New York and New York City make up the majority of the tax effect in this category.
(3)As a result of the Domestication, the NOL generated in Canada is not expected to provide a future tax benefit as the Company does not anticipate future taxable income or tax due in Canada.
(4)A valuation allowance has been recorded to offset certain deferred tax assets, net of amounts expected to be realized through reversal of existing deferred tax liabilities. Management concluded that, after considering reversing deferred tax liabilities, tax-planning opportunities and forecasted taxable income, the weight of evidence — including cumulative losses and Section 382 limitations on acquired loss carryforwards — indicates the remaining deferred tax assets are not more-likely-than-not to be realized. The primary drivers of the change in deferred tax assets are (i) recognition of loss and capital-loss carryforwards acquired from TURN, which are materially restricted by a Section 382 limitation, and (ii) the recognition in the current year of a taxable loss in the Asset Management segment that generated a net operating loss (and continued NOL positions in the Insurance Solutions segment), for which projected taxable income — given cumulative pre-tax losses over the prior three years — is insufficient to support utilization.
Schedule of Income Taxes Paid
The Company’s cash paid for taxes included in the consolidated statements of cash flows consists of the following:
Years Ended December 31,
20252024
US Federal$94 $500 
NY State9 84 
NY City10 82 
Texas35 — 
Massachusetts35 81 
Minnesota15 28 
Georgia18 — 
Other States54 53 
Foreign37 — 
Income taxes paid$307 $828 
Schedule of Income (Loss) Before Income Taxes by Jurisdiction
The details of income (loss) before income taxes by jurisdiction are as follows:
Years Ended December 31,
20252024
United States$(43,028)$(603)
Foreign(15,433)(9,178)
Income (loss) before taxes$(58,461)$(9,781)
Schedule of Income Tax Provision by Jurisdiction
The details of the income tax provision by jurisdiction are as follows:
Years Ended December 31,
20252024
Current tax
Federal$(15)$1,547 
State68 — 
Foreign37 — 
Total current tax$90 $1,547 
Deferred tax
Federal$1,905 $(941)
State391 — 
Foreign— — 
Total deferred tax$2,296 $(941)
Income tax expense (benefit)$2,386 $606 
Schedule of Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities consists of the following temporary differences:
December 31, 2025December 31, 2024
Assets
Tax benefit of loss carryforward$45,098 $20,275 
Tax benefit of expenditure pools— 13,415 
Deferred acquisition costs6,198 6,009 
Unrealized losses on remeasurement of investments17,628 10,478 
Other assets tax value in excess of book value3,768 10,284 
Total deferred tax assets72,692 60,461 
Valuation allowance(65,397)(44,604)
Total deferred tax assets, net of valuation allowance$7,295 $15,857 
Liabilities
Insurance reserves$(2,686)$(12,172)
Other(4,609)(1,389)
Total deferred tax liabilities$(7,295)$(13,561)
Net deferred tax assets$— $2,296