Transactions

Transactions

Overview

Mount Logan Capital Inc. Completes US$20 Million Acquisition of Ability Insurance Company

November 01, 2021

Mount Logan Capital Inc. (NEO: MLC) successfully completed its acquisition of 100% of the equity of Ability Insurance Company (“Ability”) for a purchase price of US$20 million comprised of the issuance of an unsecured promissory note in the amount of $15 million and $5 million of common shares of Mount Logan. In connection with the completion of the transaction, a wholly-owned subsidiary of Mount Logan became the investment adviser for a meaningful portion of Ability’s assets.

Ability is a Nebraska domiciled insurer and reinsurer of long-term care policies with approximately US$900 million of invested statutory assets as of June 30, 2021. Ability is unique in the insurance industry in that its long-term care portfolio’s morbidity risk has been largely re-insured to third parties, and Ability is no longer insuring or re-insuring new long-term care risk. As part of the transaction, Mount Logan invested US$10 million of capital into Ability to strengthen Ability’s balance sheet and launch a platform for the reinsurance of annuities.

Wildeboer Dellelce represented Mount Logan in connection with the transaction with a team comprised of Perry Dellelce, Sanjeev Patel and Rebecca Cochrane (corporate/securities) and Katy Pitch (tax).