Wefox appoints former Allianz executive Mueller as CEO to end shareholder fight

Wefox Holding AG named former Allianz manager Joachim Mueller as chief executive, ending a boardroom battle that pitted the insurance 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 the startup’s president.

The announcement marks the end of a spat among investors after Hartigan and Wefox’s largest shareholder, Mubadala Investment Co., backed a plan to sell the company to British insurance broker Ardonagh Group Ltd. that could have upset some stockholders .

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

Hartigan, who took over in March to restructure the cash-strapped company, has 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 improved after it sold e-bike insurer Assona for 55 million euros ($61 million) and secured 25 million euros in fresh funding 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 Wefox spokesman declined to comment on the Assona sale or the new funding.

Mueller previously served as CEO of Allianz SE’s Global Corporate & Specialty business and is a former member of Commerzbank’s board of directors.

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

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