German insurtech company wefox has announced the sale of its Italian operations to J.C. Flowers & Co., a private equity firm based in the U.S. This move includes wefox MGA S.r.l. and wefox Services Italy S.r.l. The financial details of the deal have not been made public.
Founded in 2015, wefox has faced financial challenges in recent years, mainly due to the costs associated with running its insurance business. To address these issues, the company has been restructuring, focusing on profitable areas and shedding non-essential assets. The sale of its Italian businesses, which primarily deal with motor insurance, is seen as a step toward improving wefox’s financial situation and completing its restructuring process.
Wefox is now concentrating on strengthening its presence in the Netherlands, Austria, and Switzerland while exiting markets like Germany and Poland. CEO Joachim Mueller, who took over in September 2024, emphasized that this sale allows the company to focus on sustainable growth and financing.
The company reassured its customers and partners in Italy that their services will remain uninterrupted, with ongoing support for administration and claims handling. The transaction is expected to be finalized by the end of the second quarter of 2025, pending standard closing conditions.
In a related development, wefox recently sold its Liechtenstein-based operation, wefox Insurance AG, to a group of Swiss companies, marking another milestone in its restructuring efforts. Additionally, in June 2024, wefox secured €25 million in new funding from investors to support its ongoing restructuring plans.
This latest sale reflects wefox’s strategy to streamline its operations and focus on areas where it can achieve growth and profitability.