Allianz Direct, Digital First The insurance giant's German subsidiary has acquired the French home insurance business of struggling insurance technology company Luco for 4.3 million euros (about $4.65 million).
This was both expected and unexpected. The companies had hoped to greenlight the deal in November. But that didn't happen, and Luko's parent company was instead subject to judicial reorganization, a process that meant it needed to quickly find a buyer that met the court's demands.
For a while now, many options are back on the table, including some not-so-great ones, until this week.
Some kind of happy ending? Not completely. After all, Luko has ambitions to single-handedly become a European insurtech unicorn, and perhaps it's paying the price now. But there's also a sense of relief for some in knowing that in the end, he won't be selling the company for parts. And there is no doubt that the surviving business division is what the company should have always maintained.
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Luco is primarily known for offering digital home insurance in France and has sold approximately 230,000 policies. Along the way, it expanded into other markets and made acquisitions, further complicating matters and adding to its debt. German startup Coya and fellow French startup Unkle were both acquired in 2022.