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