In a surprising turn of events, French insurtech Luko, previously on the verge of being acquired by British group Admiral, find themselves in a precarious position as their parent company, Demain ES, is put up for sale following Admiral’s withdrawal.
The uncertainty has created a tumultuous period for Luko’s 120+ employees as they anxiously wait to see if Allianz will emerge as the next potential buyer.
Assuring policyholders, Luko emphasized that its insurance and brokerage activities will continue as usual despite the parent company’s legal troubles.
However, with Demain undergoing judicial reorganization due to insolvency, the future looks uncertain, and the search for a buyer is now urgent.
Admiral’s abrupt exit from the acquisition deal, despite a previously agreed €14 million payment, has caused significant upheaval. The reasons for Admiral’s withdrawal were mainly attributed to financial disagreements during the due diligence process.
Subsequently, Allianz quickly stepped in with an offer for the same assets, albeit without any commitment to retaining the existing workforce at Demain. Although the exact value of Allianz’s offer is disputed, it is evident that the dynamics of the acquisition have fundamentally changed.
Amidst this uncertainty, Luko’s various business arms have seen acquisitions and divestitures, with certain portfolios already being sold off to other companies.
As Luko navigates this challenging period, the question of who will ultimately buy Demain looms large. All eyes are on Allianz, which has offered financial support to sustain Demain amidst its turmoil, raising speculation about their intentions.
The outcome of this high-stakes situation remains unclear, with potential implications for not only Luko and its employees but also the insurtech industry as a whole.
Update: Admiral responded to TechCrunch’s inquiries, citing failed transaction conditions for their withdrawal. However, Luko’s focus remains on resolving the ongoing proceedings.
Recent clarification from a Luko employee representative revealed that Allianz’s offer may include retaining a similar number of employees as Admiral’s offer, providing some insight into the potential negotiations.