Genie Energy Ltd. provided an update on its consumer insurance initiative, confirming it has secured insurance broker licenses in seven key states. The company has begun offering third-party insurance solutions to its customer base through existing sales channels. This initiative follows the earlier formation of a wholly-owned captive self-insurance subsidiary designed to enhance the company’s risk management strategy.
Genie expects to gradually strengthen the economics of its insurance offerings as it develops and brings internally-generated consumer products to market in the coming months. The captive insurance subsidiary will also expand coverage provided to the company itself.
In the fourth quarter of 2024, Genie anticipates paying approximately $40 million in premiums to its subsidiary for expanded insurance coverage. This will result in a non-recurring, non-cash charge of approximately $31 million as an insurance loss reserve in the fourth quarter and full year 2024 financial results under GAAP. However, this charge is not expected to impact the company's reported Adjusted EBITDA, and the $40 million in premium payments will remain on Genie’s consolidated balance sheet within restricted cash and other assets.
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