Fortis, KASIKORNBANK and Muang Thai Group forge stronger ties
(Thomson Reuters ONE) - On 9 November 2009, Fortis Insurance International NV, KASIKORNBANKand other shareholders of Muang Thai Group Holding ("Muang Thai")signed agreements for KASIKORNBANK to increase its shareholding inMuang Thai from 10% to 51%.This transaction is an important milestone for Muang Thai and Fortisto forge closer ties with KASIKORNBANK and is expected to acceleratethe highly successful relationship between the Bank and the MuangThai companies.Fortis entered the joint venture in Thailand in June 2004. Sincethen, Muang Thai, through its affiliates, has grown gross inflowsLife on average by 24% per year, improving its market position inLife Insurance from number 7 to number 3 with a market share of 8.5%.In Non-Life Insurance Muang Thai's market position evolved fromnumber 15 to number 5. The company has developed into a full-fledgedand significant multi-channel distributor with market leadershippositions in bancassurance and agency productivity[1].The strategic, financial and commercial and highlights of thistransaction for Fortis are:* As a result of the entrance of KASIKORNBANK as a major shareholder in the Muang Thai partnership, the economic interest of Fortis in the life insurance activities changes from 40% to 31% and for the non-life insurance activities from 15% to 12%[2].* After completion of the transaction, Fortis will receive net proceeds of EUR 41 million, having invested EUR 63 million in the venture from 2004 through 2008.* Fortis maintains its Board representation and management participation in the Muang Thai companies.* Strong endorsement of the bancassurance distribution model, further solidifying the long term relationship with KASIKORNBANK.* Solid basis for an acceleration of growth in sales, earnings and value creation.Bart De Smet, CEO Fortis, commented: " We welcome the strongercommitment of KASIKORNBANK to Muang Thai. The joint venture inThailand reflects the strength and value creation opportunities ofour Asian businesses. Our investment in Thailand meets Fortis' threekey strategic goals of (i) reaching critical size, (ii) makingsizable contributions to Fortis' insurance earnings, and (iii)generating attractive returns to our shareholders. This transactiondemonstrates the solid commitments from Muang Thai, KASIKORNBANK andFortis to build an even stronger partnership with the ambition todrive the business to new heights. I am confident that this willaccelerate the value creation for all stakeholders".Dennis Ziengs, CEO Fortis Insurance Asia continued: "When Fortisentered into the joint venture with Muang Thai in 2004, it waslooking for a long term presence in this market. As a result of thesignificant achievements over the past 5 years, the joint venture hasmade solid profit contributions and created substantial value forFortis. We expect Muang Thai, with its broader and strongershareholder base, to reach the top position in the Thai lifeinsurance market. In order to achieve this ambition, Fortis willcontinue to support Muang Thai, especially in the areas of commercialdevelopment and actuarial, risk and asset management."The transaction is expected to be completed in early 2010, subject toregulatory approvals.With insurance as core business, Fortis (www.fortis.com) employs over10,000 people in Belgium and internationally. Its four key marketsare Belgium, the United Kingdom, Continental Europe and Asia.Fortis's 75%-owned subsidiary AG Insurance is the long-establishedleader in its domestic Belgian Life and Non-Life insurance markets.It is also a leading player in the Employee Benefits segment. OutsideBelgium, the wholly-owned subsidiary Fortis Insurance Internationalis active in the three other markets through direct subsidiaries,joint ventures and local partnerships. Fortis is set to become thesecond largest motor insurer in the UK and the company is alsoapplying its know-how in Asia to build high value-added partnerships.In 2008, 54% of Fortis's insurance revenues were generated by theBelgian market and 46% by the three other markets. Fortisadditionally holds a 45% interest in the structured credit portfolioentity Royal Park Investments, and is the 100% owner of severalfinancing vehicles, of which it manages the assets and liabilities.The company is listed on Euronext (Brussels - Amsterdam).KASIKORNBANK PUBLIC COMPANY LIMITED, formerly known as Thai FarmersBank Public Company Limited, was established on June 8, 1945 and islisted on the Stock Exchange of Thailand since 1976. As of September30, 2009 the Bank had authorized share capital of Baht 30.5 billion,of which the issued and fully paid-up share capital was Baht 23.9billion. Total assets are currently at Baht 1.24 trillion. The Bankis the fourth largest bank in Thailand with market share in term ofasset at 14.4%. The Bank operates 732 branches with 6,052 ATMs acrossThailand. Our four overseas branches are located in Los Angeles, HongKong, the Cayman Islands, and Shenzhen; and there are threerepresentative offices in Shanghai, Beijing, and Kunming.Muang Thai Life Assurance Company Limited, "the Company for ForwardThinking People", was founded on 6 April 1951. Since then, it hasgrown into a leading life insurance company in Thailand withmulti-channel distribution network including bancassurance, agency,affinity, telemarketing, and direct marketing channels. Muang ThaiLife has assets of over Baht 64 billion, insurance reserves of overBaht 54 billion, and solvency margin of 726% of statutoryrequirement. Muang Thai Life provides over 300 insurance plans to itspolicyholders and services them through its own 130 branches,partners' distribution channels such as bank branches and hypermarketbranches, agency offices, and its Muang Thai Smile Hot Line 1766.Muang Thai Life received AA local rating and BBB+ internationalrating, both with stable outlooks by Fitch Ratings. Standard & Poor'saccredited the company with BBB+ rating with a stable outlook.Press Contacts:Brussels: +32 (0)2 565 22 66Investor Relations:Brussels: +32 (0)2 565 53 78 Utrecht: +31 (0)30 226 65 66[1] The Prime Minister of Thailand recently conferred the prestigiousindustry's first prize of the "Prime Minister's Insurance Award" andthe "Winner and Honour of the Prime Minister's Insurance Award 2008"to Muang Thai Life. Last year's achievement marked the 3rdconsecutive year that the company received the accolade of "bestmanaged insurance company" in Thailand.[2] Fortis' direct shareholding interest remains unchanged at 25% forlife activities, and 10% for non-life activities.http://hugin.info/134212/R/1353730/327942.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 09.11.2009 - 18:00 Uhr
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