German Insurtech wefox has agreed to sell its Italian businesses, wefox MGA S.r.l. and wefox Services Italy S.r.l., to U.S. private equity firm J.C. Flowers & Co.
Financial details of the deal were not disclosed.
Founded in 2015, wefox has faced some financial difficulties in recent years, attributed to the capitalization required for its insurance businesses. As a result of these challenges, wefox has undertaken a series of restructuring initiatives which included the shedding of non-core assets while refocusing its portfolio on profitable market positions of critical size.
The sale of its Italian businesses, which focus mainly on affinity distribution with an emphasis on motor insurance, “will provide wefox with additional financial flexibility and marks the successful completion of the group’s restructuring,” the company said in a statement.
The company is building out its leading market position in the Netherlands, Austria and Switzerland but has pulled out of the German and Polish markets.
The wefox team led by CEO Joachim Mueller and supported by its investors “can now fully focus on developing the business and ensuring its sustainable financing,” the company said. Mueller, a former Allianz executive, was appointed CEO in September 2024.
The operational business of the Italian entities will not be affected, wefox said, explaining that customers and business partners in Italy “will continue to receive high-quality administration services and claims handling support through their existing contacts.”
The transaction is expected to be completed by the end of the second quarter of 2025, subject to customary closing conditions.
In December 2024, the company completed another sale — in Liechtenstein — a transaction that it described at the time as a “key milestone in the focusing of its business.” wefox Holding AG sold Liechtenstein-based wefox Insurance AG to a group of Swiss companies, led by the independent Swiss pension service provider BERAG. Financial terms were not disclosed.
In June of 2024, investors reaffirmed their support for wefox, providing fresh capital of €25 million to support its restructuring plan with further capital gathered through the continued sale of non-core assets — a process that has now been completed.
Source: wefox
Related:
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- Mubadala Proposal to Sell Insurtech Startup Wefox Opposed by Founders
- Insurtech WeFox Raises $110 Million in Extension to 2022 Funding Round
- German Insurtech wefox Raises $400M, Increasing Valuation to $4.5B
- German Insurtech Wefox Raises $650M in Funding, Valuing Firm at $3B
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