According to SZ information, Germany’s largest car insurer HUK-Coburg is negotiating with the owners of the start-up Neodigital in Neunkirchen in Saarland about a strategic investment and the establishment of a joint venture.
Neodigital boss Stephen Voss did not want to comment. A HUK spokeswoman said: “We don’t comment on market rumors, but we always look around the market.”
With more than 13 million insured vehicles, HUK-Coburg is Germany’s largest motor vehicle insurer, and since 2011 it has also been larger than Allianz. The Coburg Group achieved sales of around eight billion euros in 2020. Neodigital, on the other hand, has been on the market since 2017 and is only just starting to offer car insurance as a line of business. In 2020 the small company had a turnover of just 5.6 million euros and a loss of nine million euros.
Nevertheless, the HUK-Coburg should be ready to make a decent double-digit million amount for a strategic investment. There is talk of well over 20 million euros.
The offer reflects the fierce competition in motor insurance, which is increasingly about access to good technology. Comparison portals such as Check24 or Verivox are increasingly dominating the market. Automating driving could cost insurers a large part of their market because vehicles that no longer cause accidents also need less insurance. At the same time, traditional providers are very worried that Internet giants such as Amazon or Google will expand their presence.
Hence the advance of the HUK-Coburg. After the strategic investment, HUK wants to set up a joint venture with Neodigital that also offers car insurance, but not under the HUK brand. The provision of insurance under the name of third parties is also possible. This is called “white label” in the industry.
Neodigital is known in the industry for its advanced technology – especially its intelligent algorithms. A number of insurers are interested in the company. But companies from outside the industry are also said to have their eyes on the young company. “Should Amazon buy Neodigital, they could stir up the whole market with the technology,” said a company expert.
In addition, Neodigital is in talks with a number of other companies in order to act as a service provider for them. This also includes the offer to manage telematics tariffs for them. The driving style is measured and a discount is then determined. HUK-Coburg is currently the largest provider of telematics tariffs. If the HUK were to participate in Neunkirchen, it could probably prevent other insurers from using Neodigital technology for their own telematics offers.
Neodigital is owned by eleven investors. They include illustrious names: US investor Peter Thiel, Carsten Maschmeyer and Christian Angermayer are directly and indirectly involved, as is the insurer Deutsche Rück. You are well aware of the jewel you have there. Therefore, they should only sell for a decent price.