wefox has agreed to sell 100% of the shares in its Italian companies wefox MGA S.r.l. and wefox Services Italy S.r.l., which focus mainly on affinity distribution with an emphasis on motor insurance, to funds managed by J.C. Flowers & Co., a global private investment firm “dedicated to investing in the financial services industry.”
The transaction will reportedly provide wefox with “additional financial flexibility and marks the successful completion of the group’s restructuring.”
The team led by CEO Joachim Müller and supported “by the investors can now fully focus on developing the business and ensuring its sustainable financing.”
The operational business of the Italian entities will “not be affected.”
wefox customers and business partners in Italy will “continue to receive high-quality administration services and claims handling support through their existing contacts.”
The transaction is expected to be completed “by the end of the second quarter this year subject to customary closing conditions.”
The parties have agreed “not to disclose any terms of the transaction.”
Founded in 2015, wefox is a European insurtech that is reportedly driven “by a single purpose: Empowering Insurance – driving the digital transformation of the insurance industry and facilitating seamless collaboration among all stakeholders.”
As covered, DARAG Group, a legacy acquirer with a focus on the European and UK market, and wefox Insurance AG, the Liechtenstein-domiciled insurance carrier of wefox Group, announced the transfer of a run-off “portfolio including Motor Damage and Third Party Liability, Private Liability and Property business across Germany, Italy and Switzerland.”
The transfer of the portfolio is related to the previously announced sale of wefox Insurance AG to a “group of Swiss companies led by BERAG.”
Claims services for all former policyholders “remain assured.”
A loss portfolio transfer (LPT) will be followed by the portfolio “transfer of all EEA domiciled business, which is subject to regulatory approval.”
Tom Booth, CEO of DARAG, said:
“This transaction is a great way to start 2025, which is our 15th year operating as a run-off consolidator in Europe. It is further evidence of DARAG’s premier position in offering legacy solutions to the European market with our well capitalised German based carrier and local claims management expertise. Our track record in providing legal finality is unparalleled in the European market.”
Peter Huber, CEO of wefox Insurance AG commented:
“We are pleased to welcome DARAG as the ideal partner for our portfolio. We now are very confident that we will be able to successfully complete the announced sale of wefox Insurance AG in the first half of 2025. This is a further step towards our future focus on the Swiss short- and long-term absence market.”
