Member Info for Jigger_1

Domestic Plumber – Insurance Works👇

Guildford, Surrey

About the role:

‘One of our most esteemed clients are looking for a motivated domestic plumber to join a new program. With this being a new project, the right engineer will have an accelerated opportunity to move into the managerial position and build a team.

You will be required to carry out general maintenance fixes in private domestic properties across the Surrey area. You will be working in the investigation team, therefore when a leak is shown to be in a property, it will be your job to investigate where that leak could be.

About our client:

Our client is a well established organisation within the water damage prevention industry, with a true passion for working with local communities to help avert the risk of serious damage to households.

They have recently gone global, therefore making this opportunity all the more appealing to anyone looking to get their foot in the industry.’

Job Reference: Leakbot plumber

https://www.cv-library.co.uk/job/220772898/Plumber

Key words – ‘new project’, ‘build a team’, ‘gone global’.

Looks like some further expansion is going on in the UK, Denmark , USA & beyond!🌎

New Leakbot recruitment in Greater Copenhagen – to start Jan ‘24👇

Plumbing fitter wanted for permanent employment for an innovative international plumbing company in Greater Copenhagen

About the job and the company:

The LeakBot company cooperates with Danish insurance companies and has established their own internal plumbing service team, which services the customers when LeakBot reports leak alerts. The LeakBot plumbing team is looking for a new colleague who is just as skilled and independent a plumber as themselves.

https://dk.indeed.com/viewjob?jk=288ff0ee0b59da47

Washington State, US👇

Leakbot Plumbing Technician - Residential Service

https://recruiting.ultipro.com/HOM1007HSUC/JobBoard/04366c17-7ee4-499a-a9e9-38ae46d03ef6/OpportunityDetail?opportunityId=1a7e4343-e5f3-4636-b11c-0030a1094832

3 of 3

CF has mentioned Ting on numerous occasions now, as a very similar claims prevention IoT system to Leakbot (albeit for electrical faults rather than water loss).

In fact, he also reposted State Farm’s Carrier Management article recently. How many clues and pointers have we now been given?

It took Ondo circa 2 years to complete the Nationwide contract. I think we can reasonably assume, State Farm were also approached in 2021 and are working on a similar time frame.

Based on State Farm’s clear Predict & Prevent strategy in this article and other research, I have no doubt Leakbot is currently being assessed by State Farm and negotiations are probably taking place on a contract.

State Farm currently looks after circa 90 million of customer policies and is the Number 1 Auto & Home Insurer in the US.

Once a contract with State Farm is announced, I believe the SP will rerate to new highs and beyond.

For me, this huge contract win is a question of when, not if?

My only other question is – should I buy at a discounted SP now or try to fight for a few shares when the crowd arrive, after it’s confirmed via RNS?

(Answer – the former!)

GLA

IMHO

2 of 3

Haden Kirkpatrick: "Driving Innovation at Scale"

So, who is the article’s author, Haden Kirkpatrick and what does he do?

Well, he leads State Farm’s innovation team, has direct access to the company’s Chief Financial Officer and was integral in rolling out Ting (amongst other things).

Is he the type of guy who can do the same with Ondo’s Leakbot?

In my opinion – 100% definitely.

Have a look at Haden’s ‘generic’ video presentation he gave last year and see what you think?

Haden Kirkpatrick: "Driving Innovation at Scale"

A few points of interest:

Circa 28min 30 secs – Innovative technology and the Internet of Things

Circa 42 min 30 secs – Business case for Innovate Products

Circa 47min 30 secs – Monitoring competitors (Nationwide, Pure etc)

https://digitalcommons.iwu.edu/alumni_talks/32/

For those that are interested – I hope you enjoy your viewing!

Maybe it’s just me – but everything he says he’s looking for, seems to perfectly match what Leakbot is offering.

It is also worthy of note, that in the latest article, he has specifically highlighted ‘escaped water related losses’, as an area of special interest and that ‘Potential solutions are currently being tested’.

1 of 3

Extremely insightful and interesting article from State Farm on its current strategy with IoT. Virtually everything State Farm are looking for in this piece, matches Leakbot’s purpose & capabilities, as a critical solution for their water leak claims. i.e. protects homes, prevents claims, engages customers, real time alerts, saves money for both parties, matches ESG policy, scalable with a proven business case, customer retention & engagement etc.

Well worth a listen.

The State Farm Vision: Ecosystem Capabilities for the Insurer of the Future

Haden Kirkpatrick, VP of Innovation at State Farm

c. 6min 45 secs

“The successful scaling of Ting represents a critical step to what state farm believes to be the future of insurance.

These predict and prevent efforts are ripe for exploration, especially when it comes to escaped water related losses. Potential solutions are currently being tested…

…smart home capabilities and assets, can empower insurers to deliver near real time alerts to their policy holders and engage them in taking proactive steps to mitigate or prevent significant claim events.

Through loss mitigation smart home vendors, State Farm harbours the ambition of preventing losses related to fire, water and theft. Which account for more than two thirds of all homeowner losses.”

c.9 mins

“In essence, State Farm is looking to reinvent the insurance industry once again. By leaning into a model that doesn’t just price, protect and recover. State Farm is proactively seeking ways to integrate experiences to predict and prevent loss. Insurers with the ambition to remain relevant, must maintain the ability to master a connected platform, specifically those related to IoT”.

https://www.carriermanagement.com/features/2023/11/28/255944.htm

CF – “More deals in the UK, more deals with insurers”

“Watch this space on water companies as well…more deals in Scandinavia”

“In the United States, I think it’s going to be nuts…the pipeline in the US just looks great…the opportunity over there is huge, I think we’re going to be busy”

Ondo InsurTech CEO is Optimistic about 2024 after a Successful Year in the Company Growth👇

https://www.youtube.com/watch?v=V3nZH54DHyU

CF - “We’re going to be insanely busy, even in the next quarter in January”

Looking forward to 2024!

GLA

Is there some more new’s on the way from Ondo?👇

https://twitter.com/StockBoxMedia/status/1737442304460247389

DD – CF stated in his latest presentation that the current numbers of registered customers is circa 80,000.

In terms of anticipated growth, the current YoY increase is running at circa 80%. With the latest Nationwide contract, the addressable household number has now increased to 5 million (based on signed contracts only).

A conservative penetration rate of 10% of those addressable households would obviously increase the registered customers to 500,000 - an increase of 625%.

CF also stated that the latest fund raise of c.£1 million was predominantly aimed at expediting the execution of current and anticipated contracts, so next year should reveal even more deals being signed.

Bearing in mind that more contracts are already in the pipeline and are yet to be signed in 2024, I think the business growth trajectory is only just starting here!

IMHO

Empyrean Energy PLC (AIM:EME) has said it is “eagerly” awaiting the finalisation of a long-term gas sale agreement for the Duyung PSC Project, offshore Indonesia.

'Updating on Monday, Empyrean said bids relating to the sell-down process to fund development of the project should be received by the end of this calendar year, with production of methane from the site due by 2025.

Chairman Patrick Cross said in the company’s interim results that he expected to update shortly on the sell-down process for Duyung, of which Empyrean owns 8.5%.

This would follow a non-binding agreement in September between Mako operator WNEL and Sembcorp Gas for the long-term sale of gas from the field.'

https://www.proactiveinvestors.co.uk/companies/news/1036520/empyrean-eagerly-awaiting-finalisation-of-indonesia-gas-sale-1036520.html

Li-Cycle Holdings (LICY) Misled Investors About Rochester Hub, Lawsuit

'The litigation focuses on whether Li-Cycle misled investors about the development of the Rochester Hub facility, said Reed Kathrein, the Hagens Berman partner leading the investigation.

The complaint alleges that Li-Cycle mispresented and concealed that: (1) the Rochester Hub was experiencing escalating construction costs; (2) these escalating costs exceeded the expected aggregate cost of the project; and (3) as a result, the company would be forced to temporarily halt construction and re evaluate the Rochester Hub construction strategy.'

‘Analysts such as Henn Capital Insight reportedly noted that Li-Cycle’s pausing of the hub project raises serious doubts about Li-Cycle’s ability as a going concern as its envisaged business model unravels.’

https://www.globenewswire.com/news-release/2023/12/11/2794101/0/en/Li-Cycle-Holdings-LICY-Misled-Investors-About-Rochester-Hub-Lawsuit-Claims-Hagens-Berman.html

SEIT paid Li-Cycle c.£13 million this year to ‘support’ the new processing warehouse build at Rochester, plus there will now be additional losses in utility services. Not a good decision in hindsight!

More write down’s to come here I think. Hopefully, the rest of the portfolio doesn’t have similar issues over the next few months?

Ondo – The top 10 most innovative and disruptive Insurtech companies👇

There are a number of growing Insurtech companies, with many startups rapidly emerging to disrupt the market.

Insurtech companies have been seeing an increase in the adoption of their services over the years, since the start of the global COVID-19 pandemic. Forecast to reach a market size of $166.4Bn by 2030, the space has been vital towards digitalising insurance sector processes, helping to meet clients wherever they are.

5. Ondo….

https://www.information-age.com/the-top-10-most-innovative-insurtech-companies-15788/

Navigating the Insurtech Landscape: A glimpse into the future

‘As we stand at the cusp of 2024, the insurtech landscape is not just a burgeoning sector; it is a dynamic force reshaping the insurance industry. The collaborative spirit evident in global partnerships, the economic contribution, the transformative influence on traditional insurers, and the proliferation of conferences and accelerators all underscore the monumental impact of insurtech. As we move forward, the horizon is laden with potential, and the key to unlocking this lies in the continued collaboration between insurtech pioneers, traditional insurers, and the broader insurance community.’

https://www.insurancebusinessmag.com/uk/news/columns/navigating-the-insurtech-landscape-a-glimpse-into-the-future-467531.aspx

V – this last raise has dealt with the funding gap in the short term. The company has been quite open & candid about needing further capital in the medium to long term.

However, there are several near term catalysts which are likely to cause the SP to rerate northwards over the next few months, as follows:

- Major rollout of Leakbot to Länsförsäkringar 2 million home insurance customers

- Launch of mass service agreement with Nationwide, offering Leakbot to their 3.4 million home insurance customers

- G4S & a major Denmark insurer deal to be signed, with rollout scheduled for 2024

- IAG\Ondo all weather Leakbot version to be revealed – opening up opportunities & markets in Australia, Asia and numerous other countries

- Southern Water pilot results, with potential rollout to their 2.5 million home owners

- Ongoing negotiations and potential deals, with other large Insurer’s & Water Utility companies, for joint enterprise Leakbot contracts

- Potential licensing opportunities for Leakbots patented Thermi-Q Technology and leak diagnostic system

- Increased & recurring contract fee’s

- Near term negotiations and contracts, in Ondo’s current pipeline, with other significant insurance companies

- Increased market penetration (currently 1.5% of current signed contracts), rising to likely 10% + of addressable households (not including new contracts yet to be signed)

In addition to the above, the medium to longer term opportunities available to Ondo, in other closed loop systems is vast i.e. commercial & business premises, integrated smart water meter application, standalone refrigeration units, housing and construction industry, mobile home applications, water cooled air conditioning units & HVAC systems etc

On top of this, I would not be surprised to see another huge US insurer like State Farm be announced soon. There is a mega trend currently underway within the industry, with Insurtech & IoT leading the way.

Taking all these likely factors into consideration (if a future placing does occur), I think the SP will be multiples of 15p and the current m\cap will have grown significantly.

IMHO

Rising home insurance costs are significant tailwinds for Ondo’s Leakbot technology – allowing customers to benefit from insurers discounted premiums\excess and lowering insurance companies water leak claims (simultaneously incentivising customer retention).👇

The hidden expense that's sucking $74 billion out of the economy

Rising home and car insurance costs could cause many Americans' budgets to crack.

https://www.businessinsider.com/soaring-home-car-insurance-rates-hurting-americans-finances-us-economy-2023-11?r=US&IR=T

A win win scenario for Ondo, insurers supplying Leakbot & their customers (particularly in the US).

I suspect State Farm and others, will very likely be on CF's current shortlist\pipeline.

IMHO

Homeowners could save tens of thousands in damages by using smart devices

Home insurance rates have increased by 21% this year

The average loss cost for water damage or freezing is $12,514; for fire or lightning damage, the average loss is $83,519, according to the Insurance Information Institute data. While homeowners insurance protects consumers from absorbing the brunt of these costs, they are still hit by the time and disturbances associated with fixing these repairs.

"The most avoidable claims can be non-weather related water losses, with most issues coming from leaky pipes, bad fixtures, or water heater leaks," Nationwide's Vice President of Personal Lines Product Development Sara Jacobs said. "Devices that detect these issues early can help avoid major problems."

https://www.foxbusiness.com/personal-finance/home-insurance-smart-device-discount

Looks like Nationwide have already started up their marketing engine for water leak prevention!

The placing is circa 6% dilution to current shareholders, so in the grand scheme of things – not too bad but not great either. Hopefully, there won’t be too much of a negative affect on the SP tomorrow morning?

Just a shame CF didn’t help to clarify the companies financial position when asked, during his recent presentation, as Dowgate Capital were clearly working on the placing during our Q&A session with him (although I think he did say it was ‘an interesting question for the future’ or something similar)?

E88 – 100% agree with you regarding Leakbot being superior. It would just be frustrating, if Nationwide don’t differentiate Leakbot's distinct advantages, on their Smart Home page.

Hopefully, you are right about dropping the other options and we see some Leakbot marketing in the New Year.

Looks like the Nationwide is partnering with several companies in providing smart home applications, including alternative water leak detection systems (as offered by Notion, Resideo, Ondo etc).

https://news.nationwide.com/nationwide-and-resideo-join-to-help-protect-homes/

https://www.resideo.com/gb/en/solutions/water/leak-detection/

Obviously, Ondo is not exclusive in offering these services and forms just one part of the options offered to the Nationwide customers. I’m not sure how Leakbot will be marketed by Nationwide now going forward (if at all), as all the other ‘third-party system providers’ aren’t mentioned on the Nationwide Smart Home page!

The process appears to be that Homeowners apply for a quote and are then subsequently sent a link for smart home devices. As Nationwide has several company offerings, presumably the customer chooses their preference and deals with their chosen third party company directly?