Allianz Direct, the first digital company The German subsidiary of the insurance giant has acquired the French home insurance subsidiary of troubled insurer Luko for €4.3 million (about $4.65 million).
This was both expected and unexpected: the two companies had hoped to get the green light for a deal in November. But that did not happen, and instead Loco’s parent company underwent a judicial reorganization, a move that meant it needed to urgently find a buyer whose bid met the court’s requirements.
For a while, many options were back on the table, including not-so-great ones, until this week.
A happy ending of some sort? not exactly. After all, Luko aspired to become a European insurtech leader on its own, and may now be 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 arguably the business unit that will survive is what it should have stuck with all along.
Yo-yo pricing
Luko is mostly known for offering digital home insurance in France About 230,000 insurance policies were sold. Along the way, things got more complicated and debt piled up as it expanded into other markets and made acquisitions: German startup Coya and its French startup counterpart. paternal uncleBoth in 2022.