wefox is reporting a big change. The Germany-based Insurtech has reportedly reached an agreement with a group of Swiss companies led by the independent Swiss pension service provider BERAG on the sale of Liechtenstein-based Wefox Insurance AG.
As announced in June of this year, the Liechtenstein-domiciled insurance carrier wefox Insurance AG is “no longer part of wefox’s core business.”
wefox has now agreed to sell the insurance company to “a group of Swiss companies led by BERAG.”
BERAG is an independent Swiss provider of pension services and in recent years has “represented wefox Insurance AG as an MGA in Switzerland and built up the daily sickness benefits business.”
Following the streamlining of the insurance company’s portfolio, it is now focusing on “collective insurance for daily sickness benefits.”
According to the announcement, this ensures continuity for the customers of wefox Insurance AG. wefox and BERAG are “committed to making this transition as smooth as possible.”
As clarified in the update, there will be no change for existing daily sickness benefits contracts, the operational processes will “remain the same and BERAG will remain the point of contact for brokers and customers in Switzerland.”
The transaction is currently subject to approval by the Liechtenstein Financial Market Authority (FMA).
The closing of the transaction is reportedly expected in the first half of 2025.
Founded back in 2015, wefox is a European insurtech driven by a single purpose: Empowering Insurance – “driving the digital transformation of the insurance industry and facilitating seamless collaboration among all stakeholders.”
As covered in September 2024, wefox Holding AG announced the selection of Joachim Müller as CEO with immediate effect. Mark Hartigan, who has served as both Chairman of the Board and interim CEO during the recent restructuring, will continue as Chairman of the board.
Hartigan stepped into the CEO role after the founding CEO, Julian Teicke, shifted into a non-executive role.
In recent years, wefox has struggled and exited certain markets while restructuring operations. wefox, once valued at around $4.5 billion, found itself short of cash looking for direction.
Earlier this year, a proposed acquisition of wefox by Ardonagh Group, based in the UK, was blocked when investors provided additional cash to the business. It was reported that the acquisition would have erased some of the early investors equity.