Wefox Appoints Former Allianz Executive Mueller as CEO to End Shareholder Fight

September 20, 2024 by

Wefox Holding AG appointed former Allianz manager Joachim Mueller as chief executive officer, ending a boardroom battle that pit the insurance tech startup’s founders against some of its shareholders.

Mueller will replace interim CEO Mark Hartigan, effective immediately, Berlin-based Wefox said in a statement on Thursday. Hartigan will remain chairman of the startup.

The announcement marks the end of a feud between investors after Hartigan and Wefox’s largest stakeholder, Mubadala Investment Co., backed a plan to sell the company to UK insurance broker Ardonagh Group Ltd. that could have wiped out some equity holders.

Wefox, which operates in eight countries and has more than 2 million customers, was short of money as funding requirements for the insurance business strained its finances. It suffered a fall from grace after the startup was valued at $4.5 billion in a Mubadala-led funding round in 2022.

Hartigan, who took the position in March to restructure the cash-strapped company, repeatedly told investors that Wefox could face insolvency within months, Bloomberg reported at the time, citing people familiar with the matter.

Wefox’s cash position has improved after it sold e-bike insurer Assona for €55 million ($61 million) and secured €25 million in fresh financing from its backers Chrysalis Investments Ltd. and Target Global, according to people familiar with the matter, who asked not to be identified because the information is not public.

A spokesperson for Wefox declined to comment on the Assona sale or new financing.

Mueller previously served as chief executive officer of Allianz SE’s Global Corporate & Specialty business and is a former member of Commerzbank’s management board.

Photograph: Signage for Mubadala at the company’s pavilion at the Dubai Air Show in Dubai, United Arab Emirates, on Monday, Nov. 13, 2023. Photo credit: Christopher Pike/Bloomberg

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