Allianz Direct, the European direct enterprise of Allianz, has finalised the acquisition of the house insurance coverage enterprise and all working belongings of French on-line insurer Luko.
The transaction is valued at round €5m ($5.42m), information publication Sifted reported, citing an individual aware about the event.
This growth marks a major enlargement for Allianz Direct within the French market, including greater than 100 colleagues to its crew.
The acquisition is a strategic transfer by Allianz Direct to broaden its vary of choices and buyer base whereas sustaining the ‘Luko’ model. This strategy goals to leverage the mixed strengths of each organisations.
In June final yr, Luko confronted monetary challenges, resulting in a chapter submitting.
An preliminary settlement for Luko’s acquisition was made with Admiral Group, a Welsh monetary providers firm, for €14m.
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Luko had a notable presence within the French on-line house insurance coverage market, with a 25% share of insurance policies offered on-line in 2022.
The corporate’s success was partly because of robust word-of-mouth suggestions, with practically half of its prospects buying insurance policies based mostly on family and friends endorsements.
Nevertheless, the cope with Admiral Group was not finalised in November because of unmet transaction circumstances.
Allianz had beforehand expressed curiosity in stepping in for Admiral Group to amass Luko’s French house insurance coverage enterprise. This curiosity has now come to fruition, as confirmed by Allianz Direct CEO Philipp Kroetz.
In a LinkedIn publish, Kroetz stated: “What a fantastic begin to 2024! I’m thrilled to announce that Allianz Direct has acquired the French house insurance coverage enterprise of Luko.
“This acquisition not solely strengthens our presence within the French direct insurance coverage market and permits us to develop our buyer base beneath the ‘Luko’ model however will in the end assist us to place ourselves as a pacesetter within the French on-line insurance coverage market.
“As one crew, we want to a promising future and are properly geared up to supply our prospects an unbeatable digital insurance coverage expertise.”
