European insurtech is showing<\/a><\/span> strength that you can\u2019t spot if you only read the data on venture capital that\u2019s available today. Indeed, some startups are showing strong fundamentals that will likely help them through this volatile landscape and then some. We made this point a couple weeks ago and we still stand by it.<\/p>\n However, it\u2019s not all rosy for companies that put growth first back when it was sexy to reach for the skies and now find themselves in a market that favors a quick, viable and visible path to profitability.<\/p>\n The Exchange explores startups, markets and money. <\/em><\/strong><\/p>\n Read it every morning on TechCrunch+<\/a> or get The Exchange newsletter<\/a> every Saturday.<\/em><\/strong><\/p>\n Case in point: French insurtech Luko, which neared insolvency<\/a> before agreeing to be acquired<\/a> by British insurer Admiral Group. The deal itself makes a lot of sense, but the rumored price tag<\/a> \u2014 \u20ac11 million plus an additional \u20ac3 million tied to specific milestones \u2014 is raising eyebrows.<\/p>\n That\u2019s because Luko had previously raised \u20ac72 million in total<\/a>, aiming to build a European leader in insurtech.<\/p>\n But things didn\u2019t turn out as well as Luko hoped. Unkle\u2019s founder is suing<\/a> Luko following his dismissal from the company after the deal, and according to reports, Admiral isn\u2019t buying the two startups as part of its own deal. And, due to the structure of the acquisitions, Unkle\u2019s investors might not see a dime<\/a> from its \u20ac22 million takeover.<\/p>\n Neither Luko nor Admiral commented on the specifics or financial aspects of the deal, which is still being finalized. But they were willing to talk to TechCrunch+ about the fit between the two organizations, and to touch on some of the reasons that stopped Luko from fulfilling its journey on its own.<\/p>\n It\u2019s the latter that we\u2019ll explore today, with additional insights from insurtech experts.<\/p>\n There\u2019s quite a bit of spin to sift through in the LinkedIn post that Luko\u2019s CEO, Rapha\u00ebl Vullierme, wrote about the company\u2019s sale to Admiral<\/a>. It\u2019s a \u201chuge achievement,\u201d he writes, but if you look deeper, the post also has various insights about the insurtech market and the struggles that startups have to face.<\/p>\n \u201cWinning in this market requires time and money: it takes eight to ten years and \u20ac100-\u20ac150M to build a sustainably profitable B2C insurer in the P&C space,\u201d Vullierme wrote. [P&C stands for Property & Casualty, the type of insurance that protects people and their belongings.]<\/p>\n<\/p><\/div>\n![\"\"](\"https:\/\/techcrunch.com\/wp-content\/uploads\/2021\/10\/exchange-banner-sq-orng-plus.jpg?w=300\")
<\/a>Starting with digital home insurance, the company quickly set out to pursue its goal of achieving European insurtech dominance by offering a speedy on-boarding process, a better customer experience than incumbents, and other nifty features<\/a>. It even acquired two startups: Coya<\/a>, a German company licensed as an insurer, and Unkle<\/a>, a French company protecting landlords against unpaid rent.<\/p>\nIt\u2019s a tough world out there<\/h2>\n