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

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 sudden: The 2 firms have been hoping to get the green light on a deal in November. However that didn’t occur, and Luko’s dad or mum firm as a substitute went beneath judicial reorganization, a process that meant it wanted to urgently discover a purchaser whose provide would meet the court docket’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 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 sold for parts in spite of everything — and the enterprise unit that can dwell on is arguably what it ought to have caught to all alongside.

Yo-yo pricing

Luko was principally recognized for providing digital home insurance in France, with some 230,000 policies sold. Alongside the best way, 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.