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 (www.fortis.com) 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 partnerships.

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 liabilities.

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.