Just Energy Group Announces Addition Of Insurance Wrap Protection
October 9, 2018 Email This Story Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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Just Energy Group Inc. announced that it has entered into a Multi-Year Contingent Business Interruption Insurance Agreement
The Insurance provides up to USD $25 million of insured limit per event, USD $50 million per year and USD $225 million of limit over an eighty month term, covering risks such as loss of income due to natural perils, sabotage, terrorism including cyber-attack, increased cost of supply from damage to supply and distribution infrastructure, interruption due to damage to customer property, losses in excess of Just Energy’s weather derivative program recoveries, and any unforeseen or unplanned weather related loss.
"The coverage period starts as at August 1, 2018 and the initial premium is USD $9.5 million per annum adjustable annually depending on loss experience. The policy structure allows for annualized amount of up to USD $6.5 million return of premiums depending on loss experience and can be cancelled annually," Just Energy said
"The Insurance complements Just Energy’s robust risk management program and is intended to mitigate the impacts to the Company due to, among other things, natural disasters, such as Hurricane Harvey and the January 2018 Winter Freeze in Texas," Just Energy said
Just Energy’s Chief Executive Officer and President, Pat McCullough, stated, "Securing this unique product further demonstrates Just Energy’s commitment to minimizing performance risk and increasing the level of stability and predictability in our future results. We have structured the coverage period to match closely with our five-year embedded gross margin and it is intended to remove a layer of uncertainty around our ability to realize the full value of that significant asset."
The Insurance is another example of Just Energy's commitment to mitigate volatility, the company said