wefox Group, an insurtech company, has finalised two deals to exit the German insurance market, focusing on profitable market positions of critical size.
The company’s local arm, wefox Germany, signed a deal to sell specialist managing general agent assona to Ecclesia Group.
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Assona, which wefox acquired in 2021, is engaged in offering e-bike and bicycle insurance via retailers.
Ecclesia will maintain assona’s affinity distribution partnerships and retain all its staff.
Furthermore, wefox Germany sealed a deal to sell its insurance brokerage activities to IWV Versicherungsservice by divesting a subsidiary.
IWV Versicherungsservice will manage the customer portfolios, parts of the broker network, sales teams and a group of employees.
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By GlobalDataIn June, the troubled insurtech company announced its intention to focus on markets where it has profitable operations or is on track to achieve this within the next 12 months.
This included strengthening its position in the Netherlands, Austria and Switzerland, while transforming its core Italian operations for better profitability and exiting Germany.
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.
These transactions largely complete wefox’s strategic realignment and exit from the German market.
Last month, wefox secured an additional €25m ($26.97m) to aid its restructuring initiative.
As part of these restructuring efforts, the company has substantially downsized its group functions.
Several members of the wefox executive and senior leadership team, including Group CFO Jon Wismer, will be departing the company in the coming months, wefox said last month.
Announcing the move, wefox executive chairman Mark Hartigan said: “The restructuring of wefox has been profound but necessary. With strong and committed investor support, we look forward to the next phase.”
