Getsafe Acquires Luko’s German Portfolio, Expanding Its Customer Base To 550,000


German digital insurtech startup, Getsafe, has made a significant move by acquiring the German portfolio of Luko, a French insurtech startup. This acquisition comes as Luko recently agreed to be acquired by British insurer Admiral Group, in a deal that excluded its German and Spanish operations. With its expansion into France earlier this year, Getsafe is now present in four countries.

Key Takeaway

Getsafe’s acquisition of Luko’s German portfolio expands its customer base to 550,000 across Europe. Getsafe’s direct-to-customer strategy and multi-product approach have proven successful, with doubling revenue year after year and achieving operating profitability. This acquisition allows Luko’s German customers to have a new home with an insurer focused on their needs.

The Background Story

Luko had previously expanded into Germany in 2022 through the acquisition of German startup Coya. The majority of Luko’s German customer base consists of former Coya customers. Interestingly, Getsafe had only engaged in loose discussions with Coya but never pursued the acquisition. Getsafe had already obtained an insurer license from the Federal Financial Supervisory Authority (BaFin) in 2021 and did not require the license that would have been acquired through Coya.

The recent acquisition of Luko’s German portfolio, which was approved by BaFin last month, aligns with Getsafe’s growth goals. This acquisition includes 50,000 policies, encompassing liability, pet, and home contents insurance. As a result, Getsafe’s customer base across Europe now amounts to 550,000, up from 400,000 prior to its expansion into France.

Benefits for Luko’s German Customers

The terms of the deal have not been disclosed, but it provides a new home for Luko’s German customer base which Admiral was not interested in acquiring. Admiral Group primarily aimed to accelerate and diversify its growth in France through its subsidiary, L’Olivier, which is known for car insurance.

Getsafe’s Sales and Operational Strategies

The successful integration of Luko Insurance’s customer base was facilitated by Getsafe’s track record of launching new products quickly, as seen in their expansion into France earlier this year. According to Christian Wiens, CEO and founder of Getsafe, the technical integration was as seamless as launching a new product due to their modular and scalable infrastructure. Unlike traditional insurers, Getsafe sells its insurance products directly to customers, mostly targeting a younger demographic with a mobile-first strategy. Their app sees a monthly usage rate of 35%, with 10% of users filing claims and the remaining 90% exploring insurance options and gaining more knowledge about protection.

Luko’s focus on a single product strategy for home insurance limited its ability to sell additional products to its customer base. By contrast, Getsafe’s multi-product strategy has been successful, resulting in increased revenue and operating profitability in its core markets. The company has experienced doubling revenue year after year since its inception, and revenue per customer has also doubled annually.

Comparison with Wefox

Wefox, a German rival of Getsafe, follows a different strategy by relying on distribution partners rather than selling directly to customers. Wefox’s first-party insurance business has been deprioritized compared to its distribution business. However, Wefox recently reshuffled its executive team and aims to achieve profitable growth while expanding its international footprint through acquisitions.

While Wefox has secured significant funding, including a revolving credit facility of $55 million, Getsafe has raised a lower amount of funding to date. It will be interesting to compare the success of the two strategies in the future: more or less funding, and the direct-to-customer approach versus the distribution partner model.

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