The British financial services group Admiral Group has today announced its acquisition of the online insurer Luko. The transaction does not include Luko’s real estate, or German or Spanish operations.
Under the terms of the deal, Admiral – a FTSE100-listed company which provides insurance and loan products to over nine million customers in the UK, US, France, Italy and Spain – will look to create a leader in the online insurance market.
In a Press release, Admiral said the transaction will accelerate the growth of its footprint in France where its existing French business, L'olivier Assurance, currently provides motor and home insurance. In addition, the deal will expand how it distributes insurance and the number of products it offers in France.
Well-established in the online home insurance market, by 2022, 25% of home insurance policies sold online in France were Luko policies. As part of the Admiral Group, the provider will continue to evolve its offering and broaden its customer base under the Luko brand.
Admiral noted the common theme of customer satisfaction driving the growth of both Admiral and Luko and said that combining the “strengths and complementary nature” of the brands’ offering and cultures will enable both to strengthen their presence in the market.
"As part of the Admiral Group, we can accelerate our development and capitalise on the expertise of the Group's French subsidiary, L'olivier Assurance,” said Raphaël Vullierme, founder and CEO of Luko. “Volume, diversification and differentiation are key pillars in the insurance market and I look forward to working closely with colleagues around the group to achieve our common vision."
Also commenting on the deal, Costantino Moretti, head of international insurance for Admiral Group said: “We’re really proud that Admiral’s story so far has been one of organic growth. However, we believe that the addition of the Luko brand and business is a good strategic fit for us. In line with our diversification strategy, it will allow us to grow efficiently in France and to leverage their technological expertise to deliver for even more customers.”
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