BRUSSELS, Belgium, April 18, 2005 (PRIMEZONE) -- Fortis CEO Jean-Paul Votron announced on 28 January 2005 the tie-up of Fortis AG and FB Insurance as part of Fortis's new strategy. The tie-up will create Fortis Insurance Belgium that will be headed by Jozef De Mey. Jozef De Mey commented: "From several possible business alternatives that were thoroughly examined, we chose a business model and structure that will retain and emphasize the uniqueness and special features of the banking and intermediaries channels, yet still create scope and opportunities for synergies. Our intention is to establish Fortis Insurance Belgium as a legal entity in the first half of 2006."
Fortis's success in selling insurance through independent intermediaries (Fortis AG) and Fortis Bank (FB Insurance) is due largely to the dedicated approach it has adopted to each of the distribution channels. This dedicated approach will be retained and Fortis Insurance Belgium will continue to serve customers through these two distinct channels with distinct commercial policies for the specific strong product portfolios, including separate pricing policies and fees.
The Management Committee of the new company chaired by Jozef De Mey will reflect this dedicated approach to the twin distribution channels. Eugene Teysen will be responsible for the intermediaries channel and Claire Pletinckx will head the banking channels (Fortis Bank and Bank van De Post/Banque de La Poste). Their responsibilities will cover both Life and Non-life insurance. Bart De Smet will remain in charge of Group insurance, Pensions and Healthcare.
To support the growth of these three lines of the business, one single department for asset management will be created and managed by Carl Dierckx, the area of financial reporting, legal and fiscal affairs and risk management will be put under the leadership of Philippe Latour and the support functions like HR, IT, organization and facility services will report to Kurt De Schepper, who succeeds Michel de Hemptinne. The latter will become General Manager "Facility Management & Purchasing" at Fortis, reporting to Herman Verwilst, Chief Operating Officer. Fortis Real Estate will remain a wholly owned subsidiary of Fortis Insurance Belgium and will manage its real estate investments under the leadership of Alain Devos.
The Management Committee has given an undertaking that the tie-up will not result in redundancies for financial or technical reasons. However, the Committee said existing external recruitment plans at both companies would be reviewed in the light of the proposed integration. This reflects the confidence that exists in the workforce's contribution to the growth and development of Fortis Insurance Belgium.
Pending formal completion of the integration, the present legal and social structures of the two companies will remain in place. Fortis will inform and consult the works councils during the integration process.
This restructuring requires the approval of the Boards of Directors of the two companies and CBFA, the supervisory authority for Belgium's financial sector.
Fortis Insurance Belgium will be Belgium's largest insurer. Premium income in 2004 totalled EUR 5.3 billion (of which 63% in individual Life insurance, 17% in Group life insurance and 20% in Non-life insurance), with a 19% share of the global market (21% in individual Life insurance, 23% in Group life insurance and 12.5% in Non-life insurance), managed reserves of EUR 31 billion in Life insurance and 5,000 FTEs (including some 1,400 at Fortis Real Estate).
"Fortis Insurance Belgium wants to combine the forces of the two companies while maximising the effects of what makes them unique," said Jozef De Mey.
Fortis is an integrated financial services provider active in the fields of banking and insurance. With a market capitalization of EUR 28.6 billion (31/03/2005) and around 51,000 employees, Fortis ranks in the top 20 of European financial institutions. In its home market, the Benelux countries, Fortis occupies a leading position which it aims to develop and bolster. Fortis is drawing on the expertise it has acquired in its home market to realize its European ambitions via growth platforms. Fortis also operates successfully worldwide in selected activities. In specific countries in Europe and Asia it effectively exploits its know-how and experience in bancassurance. Fortis is listed on the exchanges of Amsterdam, Brussels and Luxembourg and has a sponsored ADR programme in the United States. More information is available on www.fortis.com
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