Update on changes to Fortis Group

Following reports in the press over the last few days of actions that have taken place regarding the structure and ownership of activities within Fortis Group, we want to reassure you that there is no impact on our activities within the UK. This is because the scope of the decisions relates to Fortis Bank and not Fortis Insurance.

What’s happened?

Fortis Bank was the subject of a sale to the Belgian Government back in October. Fortis Insurance was not part of that sale. In Brussels on 11 February 2009, the shareholders rejected proposals to approve the sale of parts of its Dutch and Belgian operations to those respective governments, and also the proposed sale of Fortis Bank Belgium to BNP Paribas.

The shareholders in both Belgium and the Netherlands have also elected three new members to the Fortis Board, together with the CEO, Karel de Boeck.

What does this mean?

When we talk about Fortis now, there are in fact two entities; the first, the Bank, is now owned by the Governments of Belgium and the Netherlands; the second, Fortis Holdings, which is the business now owned by the Shareholders. We are part of Fortis Holdings.

What does this mean for us in the UK?

Fortis Insurance International, which includes Fortis UK (Life and Non-life insurance), remains part of the Fortis Holding Company alongside Fortis Insurance Belgium. The outcome of the shareholder vote does not impact Fortis UK and we are not part of the ongoing negotiations with the Dutch and Belgian governments on the future of Fortis’ Dutch and Belgian operations.

For Fortis UK, it therefore remains very much business as usual. We have a healthy and profitable business, supported by a strong and improving capital position. We are as focused as ever on working with our customers, clients and partners to deliver the best possible propositions and service in the market.

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