Wefox continues its restructuring efforts
According to a press release by Wefox , all current members of the Board of Directors seeking re-election were confirmed by a “large majority.” 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.
Wefox also announced that it has secured an additional €25 million from its investors.
The company plans to build out its market positions in the Netherlands, Austria and Switzerland, and to withdraw from the German market. Italy will remain a “core position” in wefox’ business portfolio and will undergo a transformation to improve its profitability. Additionally, technology development efforts will center on empowering local distribution platforms. Consequently, wefox is closing down its technology hubs in Spain and France. The new focus also means that the insurance carrier, wefox Insurance AG, will no longer be part of the company’s core business. In addition, wefox Insurance AG is actively seeking the disposal of selected portfolios that are not in line with its future risk appetite, starting with the sale of the Polish portfolio.
In line with these ongoing restructuring initiatives, the company’s Group Functions have been “significantly” reduced. A number of the wefox executive and senior leadership team members, including Group CFO Jon Wismer, will leave the company in the coming months.
“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.” – Mark Hartigan, Executive Chairman at wefox.
