Insurtech Wefox has confirmed that executive chair and chief executive Mark Hartigan (pictured), who was appointed to his current positions in the first quarter, is leaving the company at the end of 2024 at the earliest.
The confirmation comes after “people familiar with the plan” pointed to Hartigan’s imminent departure, which would follow Wefox founders’ rejection of a proposal supported by the CEO to sell the business to UK insurance broker The Ardonagh Group.
In an update following its extraordinary general meeting, Wefox noted: “All current members of the board of directors seeking re-election were confirmed by a large majority, ensuring continuity and stability. New to the board are Nikolaus Frei and Richard Watts.
“Mark Hartigan, who was re-elected to the board and who has been acting as executive chairman since March at the request of the board, will continue his executive function until at least the end of the year.”
Prior to his appointment earlier this year, Hartigan served as non-executive chair from 2023. He took over as CEO in March from co-founder Julian Teicke.
Meanwhile the company highlighted in its update: “Over the past 18 months, Wefox has undertaken a rigorous process to streamline its operations, focussing on shedding non-core assets and enhancing its core strengths.
“This period of intense restructuring has included optimising processes, reducing costs, and investing in key areas to build a more resilient and efficient organisation. These efforts have strengthened Wefox’s financial footing and operational capabilities, preparing it for the next stage of growth.
“With this context, investors [have] reaffirmed their support for Wefox, providing immediate fresh capital of €25 million to support the ongoing restructuring efforts with further capital being realised through the continued sale of non-core assets.”
According to Wefox, it is now working on a new strategy for the insurtech. It noted that additional capital measures are also being evaluated in support of a new strategic and financial framework within a revised governance structure.
As part of the ongoing restructuring, Wefox has significantly reduced its group functions. It was revealed that several members of the executive and senior leadership team, including group chief financial officer Jon Wismer, will depart in the coming months.
“Work has commenced on a new and leaner management team to guide this smaller and more focussed business to future success,” Wefox stated.
Hartigan, meanwhile, said: “The restructuring of Wefox has been profound but necessary. I’m grateful to Jon and the local and global teams for all of their efforts, which are helping to put Wefox on a more sound financial footing fit for its future ambitions.
“With strong and committed investor support, we look forward to the next phase. We are determined to create value for business partners, customers, and investors, retain and attract talented people, and continue to drive innovation in local insurance markets.”
What do you think about this story? Share your thoughts in the comments below.
