Insurtech wefox exits the German market, sells assona and brokerage activities

wefox has exited the German insurance market, selling assona GmbH to Ecclesia Group and divesting its brokerage activities to IWV Versicherungsservice AG. This marks a significant shift in wefox’s market approach, aiming for sustainable growth in more profitable regions.

Editorial Team
August 1, 2024
2 minutes

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Announcements
InsurTech

Insurtech company wefox has taken significant steps to exit the German insurance market, aligning with its broader strategy to focus on profitable market positions of critical size. This move includes the sale of assona GmbH to the Ecclesia Group and the divestment of its insurance brokerage activities to IWV Versicherungsservice AG.

The sale of assona GmbH, a specialist managing general agent, to the Ecclesia Group has been finalised. assona, which wefox acquired in 2021, has notably strengthened its market position under wefox’s ownership, particularly in the insurance for e-bikes and bicycles sold through specialist retailers.

Ecclesia will maintain assona’s affinity distribution partnerships and integrate all current employees.

In a related transaction, wefox Germany Holding GmbH has agreed to sell its insurance brokerage activities in Germany to IWV Versicherungsservice AG. This deal includes the transfer of customer portfolios, parts of the independent broker network, sales teams, and a group of employees to IWV Versicherungsservice AG.

IWV Group, an established player in the German broker market, will continue to offer broker and customer services.

Broader strategic shift

wefox’s exit from Germany is part of a broader strategy to focus on markets where it has profitable operations or is on track to achieve this within the next 12 months. This includes strengthening its position in the Netherlands, Austria, and Switzerland, while transforming its core Italian operations for better profitability.

The company is also centralising its technology development to support local distribution platforms, leading to the closure of its tech hubs in Spain and France.

To support these restructuring efforts, wefox has secured an additional €25 million ($26.97 million) through a convertible loan agreement from investors Target Global and Chrysalis Investments.

Announcing the move, wefox executive chairman Mark Hartigan stated, “The restructuring of wefox has been profound but necessary. With strong and committed investor support, we look forward to the next phase.”