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 of the event.
This improvement marks a major growth 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 method goals to leverage the mixed strengths of each organisations.
In June final 12 months, Luko confronted monetary challenges, resulting in a chapter submitting.
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Luko had a notable presence within the French on-line residence insurance coverage market, with a 25% share of insurance policies bought on-line in 2022.
The corporate’s success was partly resulting from sturdy word-of-mouth suggestions, with almost half of its clients buying insurance policies based mostly on family and friends endorsements.
Nonetheless, the take care of Admiral Group was not finalised in November resulting from unmet transaction circumstances.
Allianz had beforehand expressed curiosity in stepping in for Admiral Group to amass Luko’s French residence 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 an amazing begin to 2024! I’m thrilled to announce that Allianz Direct has acquired the French residence 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 frontrunner within the French on-line insurance coverage market.
“As one crew, we need to a promising future and are nicely outfitted to supply our clients an unbeatable digital insurance coverage expertise.”