v3.26.1
Income taxes (Tables)
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate
The effective income tax rate reflected in the Condensed Consolidated Statements of Operations varies from the United States and Canadian tax rates of 21.0 percent for the three and six months ended June 30, 2026 (June 30, 2025 – 26.5 percent) for the items outlined in the following table.

Three months ended June 30,Six months ended June 30,
2026202520262025
Income (loss) before taxes$(4,177)$(943)$(10,147)$(7,612)
Income tax rate ¹
21.0 %26.5 %21.0 %26.5 %
Income tax expense at statutory tax rate(877)(250)(2,131)(2,017)
Statutory tax rate difference between Canada and the US — (185)— (196)
Nondeductible Differences(835)992 — 1,809 
Canadian foreign accrual property income impact 1
— (166)— (1,181)
Change in valuation allowances 2
1,718 (361)2,152 1,769 
Dividends Received Deduction(15)— (30)— 
Other9 (39)9 (157)
Income tax expense (benefit)$— $(9)$— $27 
_______________
(1)On September 12, 2025, pursuant to a Plan of Domestication, immediately prior to the Mergers, (i) Legacy Mount Logan domesticated from the Province of Ontario, Canada to the State of Delaware, (ii) immediately following step (i), Mount Logan converted to a limited liability company, and (iii) immediately following (ii), Mount Logan made an election to be treated as a corporation for U.S. federal income tax purposes (the “Domestication”). As a result of the Domestication and the completion of the Business Combination, the Company is subject to a statutory tax rate
of 21% in the U.S. as compared to the 26.5% statutory Canadian corporate income tax rate applicable to Legacy Mount Logan prior to the Domestication.
(2)A valuation allowance has been recorded to offset certain deferred tax assets, net of amounts expected to be realized through reversal of existing deferred tax liabilities. Management concluded that, after considering reversing deferred tax liabilities, tax-planning opportunities and forecasted taxable income, the weight of evidence — including cumulative losses and Section 382 limitations on acquired loss carryforwards — indicates the remaining deferred tax assets are not more-likely-than-not to be realized. The primary drivers of the change in deferred tax assets are (i) recognition of loss and capital-loss carryforwards acquired from TURN, which are materially restricted by a Section 382 limitation, and (ii) continued NOL positions in the Asset Management segment and Insurance Solutions segment, for which projected taxable income — given cumulative pre-tax losses over the prior three years — is insufficient to support utilization.
Schedule of Income (Loss) Before Income Taxes by Jurisdiction
The details of income (loss) before income taxes by jurisdiction are as follows:
Three months ended June 30,Six months ended June 30,
2026202520262025
United States$(4,177)$3,389 $(10,147)$3,629 
Foreign— (4,332)— (11,241)
Income (loss) before taxes$(4,177)$(943)$(10,147)$(7,612)
Schedule of Income Tax Provision by Jurisdiction
The details of the income tax provision by jurisdiction are as follows:
Three months ended June 30,Six months ended June 30,
2026202520262025
Current tax
Federal$— $221 $— $362 
State— — — — 
Foreign— 20 — 37 
Total current tax$— $241 $— $399 
Deferred tax
Federal$— $(250)$— $(372)
State— — — — 
Foreign$— $— — — 
Total deferred tax$— $(250)$— $(372)
Income tax expense (benefit)$— $(9)$— $27 
Schedule of Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities consists of the following temporary differences:
June 30, 2026December 31, 2025
Assets
Tax benefit of loss carryforward$51,668 $45,098 
Deferred acquisition costs6,542 6,198 
Unrealized losses on remeasurement of investments16,758 17,628 
Other assets tax value in excess of book value3,875 3,768 
Total deferred tax assets78,843 72,692 
Valuation allowance(69,807)(65,397)
Total deferred tax assets, net of valuation allowance$9,036 $7,295 
Liabilities
Insurance reserves$(4,782)$(2,686)
Other(4,254)(4,609)
Total deferred tax liabilities$(9,036)$(7,295)
Net deferred tax assets$— $—