Wefox, the German insurance startup, is set to replace CEO Mark Hartigan by the end of the year.
This move comes after the board rejected a proposal from its largest stakeholder, Mubadala, to sell the company to UK insurance broker Ardonagh, according to InsurTech Insights.
Hartigan, who took on the role in March, will be succeeded as part of Wefox’s efforts to navigate its current financial difficulties.
Wefox, a Berlin-based InsurTech company, has garnered attention for raising the world’s largest funding round for an InsurTech, amounting to $650m. The company, however, is currently facing significant challenges, with recent reports highlighting the risk of insolvency.
Wefox offers a digital platform that connects insurance providers and brokers to offer seamless, technology-driven insurance solutions.
Hartigan’s predecessor, Julian Teicke, founded Wefox nearly nine years ago and transitioned to the role of President on the board.
Wefox is actively seeking additional funding to address its financial situation. The board has approved a convertible loan agreement worth approximately $27m from investors Chrysalis Investments and Target Global. The company is also negotiating the sale of its e-bike insurer Assona, aiming to raise at least €50m from the sale.
Despite the challenges, Wefox continues to work on salvaging its investment and stabilising its operations. Hartigan recently sent a memo to shareholders highlighting the potential of insolvency unless several assets are sold.
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