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Take prediction and urban legends with mental rejection : Luko is not France ’s next unicorn , and Paul McCartney isnot dead . Now hearsay has it that insurtech M&A is off the board . As for me , I ’ll be listen to the Beatles . — Anna
Questions on a “huge achievement”
Over the summer , we learned that French insurtech Luko had quash what seemed likeimminent insolvencyby agreeingto be acquiredby British insurer Admiral Group . It was n’t the journeying its investor had visualize when they put a reported€72 millioninto the inauguration , but it was n’t the final stage of the road .
However , rumors emerged a few days ago that Admiral was giving up on buying Luko .
We wo n’t know Luko ’s portion for sure until at least November 7 , its next judicial deadline . But according to L’Argus de l’Assurance , the insurance - focus media outlet thatgot the scoop , the restructuring of the startup ’s € 45 million debt became a blocking point , with creditors BNP Paribas and Triple Point Ventures both hoping to get their money back before one another .
It is n’t just creditor who may end up lose ; there are some 180 jobs on the parentage , too . And while Luko could still trade itself , it seems less likely to receive a “ very competitive offer ” like the one Philippe Maso y Guell Rivetsaidhis companyOrnikarmade to Luko before this year .
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French financial paper Les Echos reported a few days ago thatpotential buyersincluded Ornikar , insurtech Leocare and insurance incumbents AXA and Allianz . The latter is incur ready tolauncha DTC insurtech platform in France called Allianz Direct , which confirms that some are still bullishabout this line model .
Luko pass up to comment .
While insurance industry observers argued that macroeconomic condition were n’t the only perpetrator of Luko ’s demise , there was also some consensus that a takeover by Admiral Group made sense .
“ I mean it ’s a much good prolongation than if any traditional French insurer had get their hand on Luko . In improver , Admiral is also present in France via L’Olivier but chiefly does car indemnity . So I imagine they complement each other , ” insurtech advisor and adviser Bertrand Robert told me at the time .
That the two companies were a good match was also my printing after talking to Luko CEO Raphaël Vullierme and L’Olivier CEO Pascal Gonzalvez over the summertime . I still had doubtfulness about calling it a “ huge achievement , ” though .
Unpacking the end of Luko ’s solo journey in insurtech
The way Luko communicated about the deal certainly will many perplexed , to say the least . If it does n’t materialise , the memory of itsrecent ad campaignwill bestow salinity to the wound . In September — that is , after the acquisition declaration — billboard in the Paris metro bear witness a wounded unicorn while tout Luko ’s qualities as an insurer .
The message may have been confusing to customers , but not to startup insider : It was intelligibly an attempt to joke about Luko ’s former - next - unicorn status ; itwon the Grand Prizeat VivaTech ’s Next Unicorn Awards ceremonial occasion in 2022 .
In aLinkedIn resume , some praised the messaging for its sassiness . But more judge it inappropriate , and Luko ’s employees may shortly connect their ranks if they end up misplace their jobs .
Indeed , the non - unicorn is now at risk of infection of being sell for office . To some extent , it is already happening , as Admiral Group pass up to take over some activities , such as the unpaid rent policy family Luko had ventured into with the accomplishment of Unkle .
In October , insurance policy players Solly Azar and Sada Assurances announced that they were partnering to take over Luko ’s unpaid rent insurance policy portfolio . I reached out to chink whether the hand was final , but did n’t hear back . The thing may be complicated by the fact that Matthieu Luneau , Unkle ’s former CEO , reportedly launchedseveral lawsuitsagainst Luko .
As for Luko ’s German portfolio , mostly owe to its premature attainment of local startup Coya , it has alreadygone to Getsafe , fast - tracking the European digital insurtech ’s growth to 550,000 customers .
European digital insurtech startup Getsafe acquires Luko ’s German portfolio , reaches 550,000 customers
In an email , Christian Wiens secern me that Admiral ’s decisiveness wo n’t have any posture on the agreement . “ Our deal was executed in the last few hebdomad , and the whole customer base has already been transferred to our counterbalance weather sheet , ” Wiens wrote .
While it is too late for vendee ’ remorse , some insurance players may now be disposed to wait for Luko to touch rock bottom before make an offer , especially if they are not concerned in hiring any of its former staffer . If only for the rice beer of these employees , one may hope that Admiral live forward with the hand or that Luko finds another buyer .
One affair is for sure , the toll tag wo n’t be anywhere near the $ 435 million that in public trade insurance company Travelersagreed to payforBoston - based insurance company Corvus . As insurtech content expert Alexandre Pengloannotedon LinkedIn , that would be more than 30 times the amount of Luko ’s “ non - skill ” by Admiral Group .
“Now and then”
My fellow Devin Coldewey wrote a great article on the Beatles ’ last line and how advancing audio isolation technologies made it possible . My take is more visceral : I find it fabulously touching , and I am glad it be .
Do n’t be afraid of the ‘ AI - assisted ’ Beatles song , ‘ Now And Then ’
