Luko Financial Model

Three-pillar "Home Care" platform:

• Protect - IoT home monitoring (connected sensors, doorbell, leak detection, weekly reports, vacation mode); prevents accidents before they happen.
• Cover - All household insurance in one place: home insurance, landlord insurance, legal insurance (from €5.90/mo), mortgage insurance. 30% flat fee retained; remaining premium goes to claims or is given back to charity.
• Care - On-demand vetted professionals for repairs and emergencies: locksmith, plumber, video home check-up, etc.

Underwriting differentiators: 2-minute digital onboarding using external datasets; AI + claims manager for fast settlement; smartphone-based damage assessment (dual camera, Face ID, GPS, document scan); payment via Revolut-style instant transfer.

Certified B Corporation.

• European home insurance GWP: €100Bn/year
• Annual incident volumes (Europe): 1.5M fires (€10Bn claims), 14M water damages (€40Bn claims), 1.7M break-ins (€10Bn claims)
• No SAM or SOM breakdown provided.
• No market growth rate stated.
• Company aspiration: "€10Bn+ company"

• Premium revenue: Customers pay monthly premiums; Luko retains a 30% flat management fee on all premiums. Remaining 70% goes to a claims pool (giveback to charity if unused). As a full-stack insurer (target 2022–2023) the company will bear the insurance risk directly rather than ceding to a carrier.
• Home Care services: Cross-sell of IoT devices (video doorbell), professional services (locksmith, plumber, home check-up). Monetisation structure not detailed in deck.
• Pricing examples: Legal insurance from €5.90/mo; house insurance €14.43/mo; landlord insurance shown at €24.87/mo.
• Channel: 100% direct digital (app + web), no brokers. Word-of-mouth flywheel stated as key acquisition driver.
• No explicit ARPU, average premium, or commission rate beyond the 30% flat fee.

• 100,000 homes protected with Luko by end of 2020
• MRR x6 since Series A (~12 months prior), despite 3 months of COVID hard lockdown
• Quarterly new MRR chart shows consistent growth from 18.Q3 through 20.Q3, with a dip in 20.Q2 (COVID lockdown) followed by the largest quarter in 20.Q3
• NPS: 75 vs EU insurance industry average of 20
• 4.6/5 on Trustpilot, 200+ reviews
• 40% of users churn after filing a claim (industry benchmark, not Luko's own figure)
• Team size: 77 people (Ops & Admin 25, Tech & Product 34, Growth 12, Insurance 6)

Competitive landscape:

• Traditional insurers (Matmut, Groupama, Macif, AXA France): Trustpilot ratings "Bad" / ~1.3–2.1/5.
• Direct insurers (L'olivier Assurance, Direct Assurance): similarly poor reviews.
• No direct neo-insurer competitors named.

Moat / differentiation:

• NPS 75 vs industry 20 - brand and CX moat.
• Flywheel: CX → word of mouth → data → better underwriting → lower loss ratio → higher retention.
• IoT prevention data reduces claims frequency - proprietary underwriting edge over time.
• 30% flat fee / giveback model creates trust-based positioning distinct from commission-driven incumbents.
• B Corp certification as values signal.
• Full-stack insurer transition (2022–2023) eliminates MGA dependency and improves margins.

Founders & key hires:

• Raphael Vullierme - co-founder & CEO; prev. OpenJet CEO, Rocket Internet GVD; HEC Paris.
• Benoit Bourdel - co-founder & CTO; Machine Learning engineer, Nuclear Physics researcher; Ecole Polytechnique.
• Strong leadership bench: VP Growth (BCG, HEC), Chief Actuary (Admiral France), VP Operations (Airbnb), VP Product (Withings CPO), VP Marketing (Uber), VP Finance (Société Générale/EY/HEC), Lead Data Science (French Intelligence Agency/BNP), Head of Risk & Compliance (ACPR/SCOR/Munich Re/AXA).

Funding ask: Series B - amount not stated in deck. Use of funds: Not itemised in deck. Strategic intent is to (1) scale EU home insurance fast, (2) build out Home Care services platform, (3) pursue full-stack insurer licence.

Archetype + why: Insurance GWP / combined-ratio model with a home-services revenue layer. Luko is a P&C insurer with a fixed 30% fee on GWP - the primary P&L driver is premium volume (customer count × ARPU) and the loss ratio on the 70% claims pool. As it transitions to full-stack, underwriting risk moves on-balance-sheet, making a proper combined-ratio (loss ratio + expense ratio) model essential. A secondary SaaS/services revenue line (IoT devices, professional services) adds optionality but is small today.

Forecast horizon & granularity: 5 years (2020–2025); monthly for Year 1–2, quarterly for Year 3–5. Series B capital deployment warrants detail in the near term.

Key drivers & assumptions:

• Customer count (homes insured): 100,000 at end-2020; growth rate
• Average monthly premium (ARPU):
• Gross Written Premium (GWP) = customer count × ARPU × 12
• Luko revenue (management fee) = GWP × 30%
• Loss ratio on claims pool:
• Operating expense ratio:
• Home Care / services attach rate:
• Headcount growth: 77 employees at Series B;
• Full-stack insurer transition (2022–2023): model should toggle between MGA fee revenue and full GWP-minus-claims revenue structure
• Geographic expansion to broader Europe:
• Giveback / charity accrual:

Scenarios (Base / Bull / Bear - which variables flex):

• Base: 80%→40% customer CAGR; loss ratio stabilises at 50% of GWP by 2023; services attach 15% by 2023.
• Bull: Customer growth stays >100% through 2022 (strong word-of-mouth, fast EU rollout); loss ratio drops to 42% via IoT prevention; services attach 30%.
• Bear: Growth slows to 30–40% post-Series B; loss ratio pressure from adverse claims (water damage frequency); EU expansion delayed to 2023; services monetisation minimal.

Required sheets / outputs:

1. Assumptions - central toggle sheet (all drivers, scenario selector)
2. Customer model - cohort-based (monthly adds, churn rate, cumulative homes insured)
3. P&L (Insurance) - GWP, management fee revenue, claims pool, loss ratio, contribution margin; toggle MGA vs full-stack
4. P&L (Home Care services) - attach rate, ARPU uplift, gross margin on services
5. Consolidated P&L - EBIT, EBITDA
6. Headcount & OpEx - by department, matching deck's org structure
7. Cash flow & runway - burn rate, Series B proceeds, months of runway
8. Balance sheet (stub) - especially important post full-stack transition (claims reserves, regulatory capital)
9. Valuation - GWP multiple (typical 1–3× for insurtechs) and/or DCF at terminal loss-ratio
10. Dashboard - KPIs: homes insured, GWP, Luko revenue, NPS, loss ratio, cash runway