Chrysalis cuts wefox stake by a third, citing debt default risk

Chrysalis Investments has cut the carrying value of its wefox holding to £23.9 million as of September 30, 2026, from £36.0 million three months earlier. That’s a £12.1 million writedown, or about 33.6%.

In its quarterly NAV announcement published November 2, 2026, the UK-listed investor said the valuation is “determined on a fair value basis less a discount reflecting the risk of a default under the group’s debt facilities.” wefox “carries senior and mezzanine debt, which ranks ahead of the Company’s investment.” Chrysalis holds its stake as convertible loans and preferred equity.

Any new investment, refinancing or disposal affecting the ranking or terms of those convertible loans requires Chrysalis’s consent. The board “is engaged with the group’s lenders and other shareholders on that basis to protect the value of the Company’s position.”

The stake now represents 3.9% of Chrysalis’s NAV, against a historical cost of £111.8 million.

“wefox’s performance over the period continued to be driven by TAF, its Dutch term-life insurance business, which remains the leading provider in its market and operates a profitable, cash-generative managing general agent model. The group’s other operations are concentrated in Austria and Switzerland. wefox carries senior and mezzanine debt, which ranks ahead of the Company’s investment; that investment is held in convertible loans and preferred equity.

The valuation at 30 September 2026 is determined on a fair value basis less a discount reflecting the risk of a default under the group’s debt facilities. Any new investment, refinancing or disposal affecting the ranking or terms of the Company’s convertible loans requires the Company’s consent, and the Board is engaged with the group’s lenders and other shareholders on that basis to protect the value of the Company’s position.”

Wefox has spent the past two years restructuring, including selling its Italy units to J.C. Flowers and raising €151 million.