Luko’s Takeover May Not Please All, But Insurtech Endures

Allianz Direct, a digital-first German subsidiary of the insurance giant, has acquired the French home insurance business of ailing insurtech Luko for €4.3 million (around $4.65 million). This was both expected and unexpected: The two companies were hoping to get the green light on a deal in November. After all, Luko ambitioned to become a European insurtech unicorn on its own, and maybe it’s now paying the price for it. But there’s also relief for some in knowing that the company won’t be sold for parts after all — and the business unit that will live on is arguably what it should have stuck to all along. Along the way, things became more complicated and debt mounted as it expanded in other markets and made acquisitions: German startup Coya and fellow French startup Unkle, both in 2022.

Allianz Direct Acquires French Insurance Business of Luko in €4.3 Million Deal

Allianz Direct, a digital-first subsidiary of the insurance giant Allianz, has acquired the French home insurance business of ailing insurtech Luko. The deal, valued at €4.3 million (approximately $4.65 million), marks a significant move for Allianz Direct in expanding their presence in the European market.

The acquisition was both expected and unexpected. Originally, the two companies had hoped to finalize the deal in November. However, due to Luko’s parent company falling under judicial reorganization, the process was delayed as they searched for a buyer that met the court’s requirements.

For some time, numerous options were considered, including less-than-ideal scenarios. But finally, this week, a resolution was reached.

“A happy ending of sorts? Not quite.” said a spokesperson for Allianz Direct. “Luko had once aspired to become a unicorn in the European insurtech market, but perhaps their ambitions have come at a cost.”

While Luko had gained popularity for their digital home insurance offerings in France, their expansion into other markets and acquisition of companies like German startup Coya and fellow French startup Unkle in 2022, brought on more complications and mounting debt.