In an unexpected twist of fate, French insurtech Luko has been acquired by insurance giant Admiral Group, concluding a meticulous search for a buyer following Luko's recent bankruptcy filing. This acquisition sets the stage for a new chapter in Luko's journey, with the startup continuing its operations under the trusted Luko brand.
Luko, the Accel-backed French insurtech, has successfully secured an acquisition deal with Admiral Group, a prominent player in the insurance industry. While the exact financial details remain undisclosed, this acquisition marks the culmination of an extensive weeks-long process undertaken by Luko to find a suitable buyer.
The turn of events comes just a week after Luko initiated bankruptcy procedures in France. Despite the challenging circumstances, Admiral Group has expressed its commitment to preserving the Luko brand, ensuring continuity in service provision under the new entity.
This development represents a significant turnaround for Luko, which had previously demonstrated enough financial strength to acquire insurtech rivals, including Germany-based Coya and France's Unkle in 2022. With a total funding of $75 million to date, Luko attracted investments from reputable entities such as Accel, Speedinvest, Founders Fund, and EQT Ventures.
Raphaël Vullierme, Luko's CEO, shared insights on the arduous journey of building a successful B2C insurer in the property and casualty insurance space. He emphasized the need for time, financial resources, and a well-defined strategy. In light of the economic downturn, finding the ideal partner to achieve growth and profitability became paramount, leading Luko to recognize Admiral as the perfect collaborator to further its vision.
Throughout the acquisition process, Luko explored potential buyers from both incumbent insurers and neo-brokers, showcasing its commitment to finding the most suitable partner. Admiral Group, in an official statement, highlighted that the acquisition would not only bolster its presence in France but also augment its existing offerings through Luko's extensive customer base of over 450,000.
The acquisition of Luko by Admiral Group signifies a pivotal moment in the insurtech landscape, showcasing the resilience and adaptability of startups in the face of challenges. Luko's ability to secure a strategic partner like Admiral Group ensures continued operations under a trusted brand, while Admiral strengthens its position in the French market. This move sets the stage for growth, innovation, and customer-centric insurance solutions in the evolving world of insurtech.
