Allianz Direct, a digital-first German subsidiary of the insurance coverage large, has acquired the French residence insurance coverage enterprise of ailing insurtech Luko for €4.3 million (round $4.65 million).
This was each anticipated and surprising: The 2 corporations had been hoping to get the inexperienced mild on a deal in November. However that didn’t occur, and Luko’s mum or dad firm as a substitute went underneath judicial reorganization, a process that meant it wanted to urgently discover a purchaser whose provide would meet the courtroom’s necessities.
For some time, many choices had been again on the desk, together with not-so-great ones — till this week.
A contented ending of types? Not fairly. In spite of everything, Luko had ambitions to change into a European insurtech unicorn by itself, and possibly it’s now paying the value for it. However there’s additionally reduction for some in figuring out that the corporate gained’t be offered for elements in spite of everything — and the enterprise unit that can reside on is arguably what it ought to have caught to all alongside.
Yo-yo pricing
Luko was largely recognized for providing digital residence insurance coverage in France, with some 230,000 insurance policies offered. Alongside the best way, issues turned extra sophisticated and debt mounted because it expanded in different markets and made acquisitions: German startup Coya and fellow French startup Unkle, each in 2022.