Wefox to replace CEO

According to a report by Bloomberg, Wefox is replacing CEO Mark Hartigan after the German insurance startup’s board rejected a proposal by its largest stakeholder, Mubadala, to sell the company to UK insurance broker Ardonagh. Hartigan, who took the position in March, will be replaced by the end of the year.

Last month, Hartigan sent out a memo to shareholders highlighting the potential of insolvency unless Wefox was able to sell a number of assets.

The board also approved a convertible loan agreement prepared by investors Chrysalis Investments and Target Global for about $27 million and will seek to raise more money. Wefox is in talks to sell e-bike insurer Assona, which it expects will raise at least €50 million.