Genie Energy Advances Insurance Strategy

Core Viewpoint - Genie Energy, Ltd. is expanding its consumer products portfolio by introducing insurance offerings through a newly formed captive self-insurance subsidiary, enhancing its risk management strategy [1][2]. Group 1: Insurance Initiative - The company has secured insurance broker licenses in seven key states and is offering third-party insurance solutions to its customer base [2]. - Genie expects the economics of its insurance offerings to improve as it develops internally-generated consumer products in the upcoming months [2]. Group 2: Financial Implications - In the fourth quarter of 2024, Genie plans to pay approximately $40 million in premiums to its captive insurance subsidiary for expanded coverage addressing additional risks [2]. - A non-recurring, non-cash charge of about$31 million will be recorded as an insurance loss reserve in the fourth quarter, but this is not expected to affect the reported Adjusted EBITDA [3]. - The $40 million premium payments will be reflected on Genie's consolidated balance sheet as restricted cash and other assets, available for investment by the Captive [4]. Group 3: Financial Position - As of September 30, 2024, Genie reported cash and cash equivalents, along with restricted cash and marketable equity securities, totaling$191.7 million [5]. Group 4: Company Overview - Genie Energy Ltd. is a provider of retail energy and renewable energy solutions, supplying electricity and natural gas to residential and small business customers in the U.S. [6].