Fortis sells its Luxembourg Non-life activities

Tuesday, 06. October 2009 17:45
Fortis announces it has reached an agreement with La Bâloise for the
sale of its Luxembourg Non-life activities, Fortis Luxembourg IARD,
for a consideration of EUR 23 million. Fortis Luxembourg IARD had
Gross Written Premiums of EUR 22 million in 2008.

In its recent strategic review, Fortis concluded that its activities
should meet certain criteria. More specifically businesses must be
capable of reaching a critical size and make a meaningful
contribution to Fortis' insurance earnings. It is in this context
that Fortis has decided to divest Fortis Luxembourg IARD.

Fortis considers the choice of La Bâloise as being in the best long
term interests of all parties involved, including employees,
customers and agents. The new owner is ideally placed to grow this
franchise in the future with the support of the employees of Fortis
Luxembourg IARD. They will continue to be the most important
contributing factor in the company's future success. Appropriate
measures have been taken to ensure that the transition to new owners
will be as seamless and rapid as possible for all parties involved.

Steven Braekeveldt, CEO Continental Europe, commenting on the sale of
the Luxembourg Non Life activities said: "Our decision to divest
Fortis Luxembourg IARD reflects the Group's refocused strategy and
our intention to ensure that our business achieves the best possible
returns for the group. We plan to continue to focus on building
strong partnerships which fulfil the agreed criteria and reflect the
Group's strengths. Going forward, we will concentrate our efforts in
Luxemburg on further developing our life operations in the local as
well as the international market."

The transaction is subject to regulatory approval.

With insurance as core business, Fortis ( employs over
10,000 people in in Belgium and internationally. Its four key markets
are Belgium, the United Kingdom, Continental Europe and Asia.

Fortis's 75%-owned subsidiary AG Insurance is the long-established
leader in its domestic Belgian Life and Non-Life insurance markets.
It is also a leading player in the Employee Benefits segment.

Outside Belgium, the wholly-owned subsidiary Fortis Insurance
International is active in the three other markets through direct
subsidiaries, joint ventures and local partnerships. Fortis is set to
become the second largest motor insurer in the UK and the company is
also applying its know-how in Asia to build high value-added

In 2008, 54% of Fortis's insurance revenues were generated by the
Belgian market and 46% by the three other markets.

Fortis additionally holds a 45% interest in the structured credit
portfolio entity Royal Park Investments, and is the 100% owner of
several financing vehicles, of which it manages the assets and

The company is listed on Euronext (Brussels - Amsterdam).

Fortis's robust commitment to social responsibility is expressed
through the activities of its Fortis Foundations, which are dedicated
to philanthropy and promoting volunteer work.

Press Contacts:

Brussels: +32 (0)2 565 22 66

Investor Relations:

Brussels: +32 (0)2 565 53 78 Utrecht: +31 (0)30 226 65 66

This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

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