Last month, Hartigan sent out a memo to shareholders highlighting the potential of insolvency unless Wefox was able to sell several assets.
A report by the Financial Times also stated that the European insurance start-up that was once highly valued and raised the world’s largest funding round for an insurtech (US$650 million), is close to insolvency, and the fund is working to salvage its investment in the Berlin-based company, which has faced significant challenges in recent years.
The board has approved a convertible loan agreement worth approximately $27 million from investors Chrysalis Investments and Target Global and is seeking additional funding. Wefox is also in negotiations to sell e-bike insurer Assona, aiming to raise at least €50 million from the sale.
Following his replacement in March, former CEO Julian Teicke expressed his conviction that the move would enable him to continue providing strategic guidance to Wefox while dedicating more time to nurturing emerging ventures in various sectors. Teicke, who founded Wefox nearly nine years ago, transitioned to the role of President on the board.
He released a statement saying: “Change is a fundamental part of both business and success, and this step is the right step for Wefox and for me personally. It allows me to maximise my impact for Wefox while allowing me to focus more time and energy on my other big passion: supporting founders in building up their own ventures and giving them the audacity to dream big to build industry-leading ventures. I look forward to the next chapter of Wefox and pass the captain’s armband to Mark [Hartigan].”
Hartigan has previously served in various leadership roles, including CEO of LV= and Head of Operations for Europe, the Middle East, and Africa at Zurich Insurance Group. He also served as CEO for Zurich Global Life in the Asia Pacific and Middle East regions, where he successfully led regional business operations across Europe.
