Insurtech wefox has continued its planned exit from the German insurance market, aligning with its strategy to focus on profitable market positions of critical size.
As part of this realignment, wefox Germany Holding GmbH has finalized the sale of assona GmbH to the Ecclesia Group.
Assona, acquired by wefox in 2021, has strengthened its market position under wefox's ownership, particularly in insurance for e-bikes and bicycles sold through specialist retailers. Ecclesia will maintain assona's affinity distribution partnerships and integrate all current employees.
In a related transaction, wefox Germany Holding GmbH has agreed to sell its insurance brokerage activities in Germany to IWV Versicherungsservice AG. This deal includes the transfer of customer portfolios, parts of the independent broker network, sales teams, and a group of employees to IWV Versicherungsservice AG. IWV Group, an established player in the German broker market, will continue to offer broker and customer services.
These transactions mark a significant step in wefox's exit from the German market, as part of the company's ongoing strategic shift.
Last month, sources indicated that CEO Mark Hartigan might be leaving the company following a rejected acquisition proposal from Mubadala Investment Co., wefox's largest stakeholder. Hartigan, who assumed the CEO position in March, supported the proposed sale as part of efforts to restructure the company's financial situation.
Hartigan was previously an executive with Zurich and headed LV=. He replaced co-founder Julian Teicke when he moved into the role at Wefox, having previously been a non-executive chairman at the firm.
It was earlier this month that the axing was confirmed, with Hartigan leaving his post at the end of 2024 at the earliest.
According to Bloomberg, the board has approved a convertible loan agreement worth around €25 million from investors Target Global and Chrysalis Investments, aimed at raising additional funds.
Before the dual transactions, wefoax was noted to have operations across eight countries and more than two million customers.
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