French insurtech Luko, which recently lost its potential acquisition by Admiral, finds itself in a precarious situation. The parent company, Demain ES, has been put up for sale following a tribunal’s decision, leaving Luko’s employees uncertain about their future. However, Luko assures its policyholders that its insurance and brokerage activities will continue as usual.
Key Takeaway
Luko, a French insurtech in search of a buyer, is facing uncertainties after the collapse of its deal with Admiral. Allianz has emerged as a potential buyer, offering to acquire Luko’s assets. The final outcome remains unknown, but the fate of Luko’s employees and the company itself hangs in the balance.
A Bumpy Journey
The road to finding a buyer has been fraught with obstacles for Luko. After Admiral backed out of the deal, the company entered accelerated safeguard proceedings in June and is now under judicial reorganization due to insolvency. Despite this, there is still a possibility for Luko to be acquired, with a notice in the newspaper announcing the sale. However, it is now confirmed that Admiral will not be the buyer.
Allianz Enters the Picture
Allianz emerged as a potential savior for Luko, offering to acquire the same assets that Admiral had intended to purchase. While the offer from Allianz did not guarantee the preservation of jobs at Demain and its subsidiaries, it aligns with Allianz’s plans to launch a direct-to-consumer (DTC) insurtech platform in France. Luko has been a prominent player in the DTC home insurance market in France.
Details of Allianz’s offer varied, with Demain presenting it as worth €14 million, while the tribunal valued it at €8 million. The price tag might still change considering Demain’s current situation, and the scope of the deal could also be altered. Notably, portions of Luko’s business, such as the German customer portfolio and the unpaid rent insurance portfolio, have already been acquired by other companies.
Who Will Buy Demain?
The question remains: who will ultimately become the buyer of Demain ES? Allianz is one prospective option, having offered an advance payment to keep the company afloat. However, other potential buyers, including AXA, Ornikar, and Leocare, have also been mentioned. The worst-case scenario would be if all offers were to disappear, leaving Luko in a vulnerable position.
