Wefox to sell Italy units to JC Flowers as restructuring completes

By Ryan Hewlett

May 13 - (The Insurer) - Wefox has agreed to sell its Italian entities to funds managed by private equity firm JC Flowers & Co, bringing to an end a long-running restructuring of the company and its operations.

JC Flowers will acquire Wefox MGA S.r.l. and Wefox Services Italy S.r.l., which focus mainly on affinity distribution and have an emphasis on motor insurance.

The transaction is expected to be completed by the end of the second quarter, subject to closing conditions. Terms of the transaction were not disclosed.

The deal marks the latest insurance-focused investment for New York-headquartered JC Flowers, which late last month acquired UK insurer Admiral Group's U.S. motor insurance business, including Elephant Insurance Company and Elephant Insurance Services.

Wefox said in a statement on Tuesday that the transaction will provide the company with additional financial flexibility and marks the successful completion of the group’s restructuring, allowing newly appointed CEO Joachim Müller to focus on developing the business.

Former Allianz Global Corporate & Specialty CEO Müller was appointed as CEO in September 2024, replacing Mark Hartigan, who had served as both chairman of the board and interim CEO during the recent restructuring. Hartigan continues in his role as chairman.

Other actions taken include the sale of Wefox's Polish portfolio and the closure of its technology hubs in Spain and France as it refocuses on markets where it has profitable operations of critical size.

The restructuring has seen Wefox sell off its Liechtenstein-based insurance carrier to a consortium of Swiss companies led by pension service provider Berag and unveil plans to withdraw from its domestic German market.