Insurtech wefox Holding AG, at its General Meeting, saw investors reaffirm their support for the company by providing an immediate fresh capital injection of €25 million.
This capital will support the ongoing restructuring efforts for which the company has already taken substantial steps, with further capital being realized through the continued sale of non-core assets.
Additional capital measures are under evaluation by the investors to support a new strategic and financial framework within a revised governance structure.
At the same meeting, all current members of the Board of Directors were reelected by a large majority except for the new members, Nikolaus Frei and Richard Watts.
Mark Hartigan was also re-elected. He has been acting as Executive Chairman since March and will continue his executive function until at least the end of the year.
Over the past 18 months, the company has undertaken a rigorous process to streamline its operations, focusing on shedding non-core assets, these efforts have strengthened its financial footing and operational capabilities, explained the firm. The ongoing restructuring initiatives and asset sales are expected to be completed by year-end.
wefox will only focus on markets where it has profitable operations of critical size or is on track to achieving this within the next 12 months. Keeping this in mind, the company will further build out its presence in the Netherlands, Austria and Switzerland, and withdraw from the German market. Italy remains a core position in its business portfolio and will transform to improve its profitability.
Additionally, technology development efforts will centre on empowering local distribution platforms. Consequently, wefox is closing down its technology hubs in Spain and France.
The firm’s insurance carrier, wefox Insurance AG, will no longer be part of the company’s core business. Its solvency capital ratio on 31st March 2024 was 176%, and the entity will receive continued Group support. Additionally, the insurer is actively seeking to dispose of selected portfolios not in line with its future risk appetite, starting with the sale of the Polish portfolio.
Due to the restructuring initiatives, the company’s group functions have been significantly reduced, causing several executive and senior leadership team members, including Group Chief Financial Officer, Jon Wismer, to leave the company in the coming months.
Mark Hartigan, Executive Chairman, commented, “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.”
