Insurtech wefox has secured funding of €151 million ($177.8 million), which will enable the company to build its core market positions in Austria, the Netherlands, and Switzerland as well as its asset-light managing general agent (MGA) and smart insurance distribution businesses internationally.
Funding comprised a €76 million ($89.5 million) capital raise primarily from its existing investor base as well as refinancing of an existing credit facility with €75 million ($88.3 million) from Searchlight Capital Partners’ credit fund, Searchlight Opportunities Fund II.
The funding follows the successful completion of the group’s business restructuring program, which included the closing of the sales of Liechtenstein-based wefox Insurance AG and the Italian companies wefox MGA S.r.l. and wefox Services Italy S.r.l.
Founded in 2015, wefox has faced some financial difficulties in recent years, attributed to the capitalization required for its insurance businesses. As a result of these challenges, wefox took a series of restructuring initiatives which included the shedding of non-core assets while refocusing its portfolio on profitable market positions of critical size.
In Austria, wefox offers the most advanced digital platform for retail insurance brokers in the local market, which has positioned it to become the leading wholesale broker, the company said.
In the Netherlands, wefox is the number one player in the Dutch term-life market under the TAF brand, providing customer propositions with its full-service MGA model. In Switzerland, wefox is a top-ranked player in retail insurance distribution, continuously expanding its customer offering to provide holistic risk advice for individuals.
“By further strengthening its partnerships with insurance companies and by scaling its local distribution platforms, wefox is positioned for sustainable revenue growth and margin expansion in its current markets and beyond,” the company continued.
With the successful completion of the refinancing, the composition of the board of directors of wefox Holding AG has changed. Prateek Puri, partner at Searchlight Capital Partners, and Joachim Mueller, CEO, have joined the board. Julian Teicke, Fabian Wesemann, Dario Fazlic and Nikolaus Frei have now left the board.
“Changing customer needs, new regulatory requirements, and new technological capabilities are transforming the insurance value chain. Our strengths and our focus on MGA and smart distribution services make us an attractive partner for risk carriers and downstream brokers,” commented Mueller in a statement.
“We believe that our compelling offering and our smart, asset-light business model will create value for our customers, our business partners and our investors,” he added.
Zurich-based wefox is a European insurance platform that combines smart insurance distribution and MGA services. With leading market positions in Austria, the Netherlands and Switzerland, wefox works closely with insurance carriers and a broad network of distribution partners.
Topics
InsurTech
Tech
Insurance Wholesale
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