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Income taxes (Tables) | 12 Months Ended
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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,
|  |  |  |  |  | 2025 |  | 2025 |  | 2024 |  | 2024
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 Differences |  |  |  |  |  | 1,395 |  |  | (2.4) | % |  | 1,368 |  |  | (14.0)%
Domestication capital gain 1 |  |  |  |  |  | 3,598 |  |  | (6.2) | % |  | — |  |  | —%
Partnership differences |  |  |  |  |  | 1,205 |  |  | (2.1) | % |  | — |  |  | —%
Foreign accrual property income impact |  |  |  |  |  | 786 |  |  | (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,
|  | 2025 |  | 2024
US Federal |  | $ | 94 |  |  | $ | 500 |
NY State |  | 9 |  |  | 84 |
NY City |  | 10 |  |  | 82 |
Texas |  | 35 |  |  | — |
Massachusetts |  | 35 |  |  | 81 |
Minnesota |  | 15 |  |  | 28 |
Georgia |  | 18 |  |  | — |
Other States |  | 54 |  |  | 53 |
Foreign |  | 37 |  |  | — |
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,
|  |  |  |  |  | 2025 |  | 2024
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,
|  |  |  |  |  | 2025 |  | 2024
Current tax |  |  |  |  |  |  |  |
Federal |  |  |  |  |  | $ | (15) |  |  | $ | 1,547 |
State |  |  |  |  |  | 68 |  |  | — |
Foreign |  |  |  |  |  | 37 |  |  | — |
Total current tax |  |  |  |  |  | $ | 90 |  |  | $ | 1,547 |
Deferred tax |  |  |  |  |  |  |  |
Federal |  |  |  |  |  | $ | 1,905 |  |  | $ | (941) |
State |  |  |  |  |  | 391 |  |  | — |
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, 2025 |  | December 31, 2024
Assets |  |  |  |
Tax benefit of loss carryforward |  | $ | 45,098 |  |  | $ | 20,275 |
Tax benefit of expenditure pools |  | — |  |  | 13,415 |
Deferred acquisition costs |  | 6,198 |  |  | 6,009 |
Unrealized losses on remeasurement of investments |  | 17,628 |  |  | 10,478 |
Other assets tax value in excess of book value |  | 3,768 |  |  | 10,284 |
Total deferred tax assets |  | 72,692 |  |  | 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 |

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