Ageas N.V.
Below you will find information from the register publication of inside information. The information has been provided by the organisation.
Registration date
27 jan 2008 - 18:37
Statutory name
Ageas N.V.
Title
Fortis confirms sound capital and solvency position and unchanged dividend policy
Comments
Update on 2007 profit forecast taking into account very stringent and market consistent sub prime assumptions
In view of recent market speculation, Fortis provides the market with the following information, which was also presented to the regular Fortis Board of Directors meeting of 25 January 2008.
Regarding the 2007 results:
• Fortis Bank end-of-year solvency well above 8%.
Fortis end-of-year solvency is expected to surpass regulatory requirements and Fortis Bank core tier 1 ratio would be, even under the most stringent coverage assumptions simulated below, well above 8%.
• Fortis intends to keep its dividend policy unchanged.
Fortis management will recommend to the Board of Directors meeting of 6 March 2008 to propose to the General Shareholders Meeting of 29 April 2008 that the cash dividend is maintained at the same level as last year, i.e. a final 2007 dividend of EUR 0.59 per share.
• Capital and solvency requirements will be met, even in very stringent scenarios on the impact of the sub prime CDO portfolio.
Fortis is reviewing the value of its sub prime CDO portfolio on an ongoing basis. Different scenarios are used in this assessment. Even under very stringent coverage assumptions based on the most recent and presently available market information and data, Fortis 's capital and solvency requirements would still be met.
The CDO sub prime gross exposure remained unchanged compared with the disclosure at the time of the presentation of the 3rd quarter financial results early November 2007.
Applying the Fortis valuation model at year end would lead today to impair 40% of the Mezzanine super senior CDO tranches and 15% of the High Grade super senior CDO tranches. Those impairments would result in a Net Profit before divestments – and barring unforeseen circumstances - of around EUR 4.0 billion (i.e. EUR 5.0 billion including the EUR 1 billion of the Caifor sale). These aforementioned indications of Fortis Net Profit are excluding the positive profit
Date last update: 06 June 2025