Luko’s acquisition won’t make everyone happy, but the insurtech will live on


Share post:

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. But that didn’t happen, and Luko’s parent company instead went under judicial reorganization, a procedure that meant it needed to urgently find a buyer whose offer would meet 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 sorts? Not quite. After all, Luko had ambitions 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.

Yo-yo pricing

Luko was mostly known for offering digital home insurance in France, with some 230,000 policies sold. 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.

Source link

Lisa Holden
Lisa Holden
Lisa Holden is a news writer for LinkDaddy News. She writes health, sport, tech, and more. Some of her favorite topics include the latest trends in fitness and wellness, the best ways to use technology to improve your life, and the latest developments in medical research.

Recent posts

Related articles

Rivian targets gas-powered Ford and Toyota trucks and SUVs with $5,000 ‘electric upgrade’ discount

Rivian is offering discounts up to $5,000 on its EVs — and a year of free charging...

UnitedHealth says Change hackers stole health data on ‘substantial proportion of people in America’

Health insurance giant UnitedHealth Group has confirmed that a ransomware attack on its health tech subsidiary Change...

TechCrunch Space: Engineering the future

Hello and welcome back to TechCrunch Space. Don’t worry — we’ll be diving into the Mars Sample...

Here are the 30+ startups showcasing at HAX’s May 1 Demo Day

A few weeks back, TechCrunch ventured out to New Jersey to pay an early visit to HAX’s...

Here’s a lab-grown diamond startup that’s attracted a16z’s attention

Throughout hip-hop’s long history, jewelry has served as an important vehicle for artists to convey their ideas...

US government says security flaw in Chirp Systems’ app lets anyone remotely control smart home locks

A vulnerability in a smart access control system used in thousands of U.S. rental homes allows anyone...

Substack rival Ghost confirms it will join the fediverse in 2024

Ghost, an open-source rival to Substack’s newsletter platform, has confirmed it will this year officially join the...

Amazon ends California drone deliveries

Amazon confirmed it is ending Prime Air drone delivery operations in Lockeford, California. The Central California town...