Press release Brussels/Utrecht, 8 March 2007

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(1)Press release Brussels/Utrecht, 8 March 2007. Annual Results. Commercial focus and entrepreneurship drive Fortis’s net profit to record EUR 4.4 billion New ambitious targets and 21% dividend increase affirm confidence in sustainable growth. •. Fourth quarter: net profit before results on divestments was EUR 749 million, 62% higher than the same quarter in 2005 (EUR 461 million) and 15% lower than the preceding quarter in 2006 (EUR 884 million). •. Total proposed dividend of EUR 1.40 per share in cash, up 21% from EUR 1.16 for 2005. As an interim dividend of EUR 0.58 per share was paid in September 2006, the proposed final dividend amounts to EUR 0.82 per share. •. • •. Fortis has raised its long-term financial targets for 2004–11: • Compound annual growth rate (CAGR) of net profit per share of at least 15% (2004-11); This leads to a commitment to achieve a 12% CAGR (2006–11) based on the 2006 cycle-neutral profit base of EUR 3.8 billion • Return on equity of 18.5% and risk-adjusted return on risk-adjusted capital (RARORAC) of 18.5% • Average operating leverage of at least 250 basis points • 30% of net profit from outside Benelux by 2009 • Cash dividend at least stable or growing in line with long-term EPS growth New capital model introduced: clear targets set at level of group, banking, insurance and general Basel II: expected to achieve maximum regulatory capital relief allowed in 2008 and 2009. Key figures Fortis (in EUR million). FY 2006. Net profit before results on divestments. 4,351. - Banking - Insurance - General Results on divestments - Assurant (General) Net profit EPS – earnings per share (in EUR) Before results on divestments DPS – dividend per share (in EUR) Net equity per share (in EUR) Return on equity (in %). FY 2005. Change. 3,498 3,149 1,420 (218 ). 24% 2,434 1,225 (161 ). 29% 16% 36%. 443 443 4,351 3.38. 3,941 3.07 3.38. 1.40 15.98 22.0. 10% 10% 2.73. 1.16 14.75 20.4 *. 24% 21% 8%. *Excluding divestments Fortis Annual Results 2006 | 8 March 2007 |. 1. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. • 2006 net profit before results on divestments +24% to EUR 4,351 million • Banking: +29% to EUR 3,149 million, thanks to sustained commercial momentum, reflected in increased revenues (+15%); 74% of increase stems from activity-based net interest income and net commissions and fees • Insurance: +16% to EUR 1,420 million, on the back of solid volume growth, higher investment income and sound technical results in Non-Life Embedded Value (+25%) and Value Added by New Business (+26%) up sharply.

(2) Fortis CEO Jean-Paul Votron comments: “Our 2006 results are excellent – the record net profit of EUR 4.4 billion has already surpassed the target we set ourselves for 2009. This outstanding performance is a reflection of strong and sustained commercial momentum in banking and insurance, combined with a favourable environment. Since announcing our strategy and targets in January 2005, Fortis has delivered two years of record profit at a compound annual growth rate of 34% – well in excess of our 10% target. In the past two years, Fortis has successfully shifted its primary focus back to the customer. At the same time, we have stimulated entrepreneurship – something that our employees have strongly embraced. Supported by the international repositioning of our brand, our people have performed tremendously in growing the Fortis franchise and increasing customer satisfaction. Our clients and competitors alike recognise that Fortis is a top financial services provider in Benelux, in Europe and beyond, in the selective areas in which we choose to compete.. Fortis will continue its growth path in an enlarged Europe, and selectively in Asia and North America, based on three growth levers. Firstly, we will further reinforce our competitive position in established markets, based on our enhanced operating model. Secondly, we will invest in growth engines – rolling out proven models to new markets and segments. And finally, we will also grow through selective add-on acquisitions, subject of course to strict criteria. Based on the success of our strategy over the past two years, we have identified several growth opportunities despite a potentially more challenging operating environment in the future. That is why we have decided to upgrade our long-term financial targets. While continuing to focus on an operating leverage of 250 basis points and a net profit contribution of at least 30% from outside the Benelux countries by 2009, we will deliver – for the period 2004–11 – a steep 15% compound annual growth rate in net profit per share and an average return on equity of at least 18.5%. Let me conclude by thanking all our customers, employees and shareholders for their confidence in Fortis. As CEO, I am absolutely committed to sustaining value creation for all our stakeholders by placing Fortis even more firmly on the map of leading international financial services providers. These strong results have strengthened the conviction I had when I joined two years ago that Fortis has all the necessary ingredients for success: an extremely productive multi-channel distribution model, excellent product capabilities, highly motivated people and sound financial discipline. Together, these assets underpin our new long-term financial targets and I am convinced that Fortis will deliver once again. To back up my firm belief in Fortis’s future, I am happy to announce that the Board of Directors proposes the payment of a final cash dividend of EUR 0.82, raising the full-year dividend by 21% to EUR 1.40.” Fortis Annual Results 2006 | 8 March 2007 |. 2. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. These strong results have not distracted us from our key priorities and some important lessons learned. Several important actions have been undertaken: as a company that is increasingly international, it’s essential that we grow in a controlled way. To ensure that Fortis – as a risk intermediator – continues to achieve attractive returns, I have elevated the risk function and made it a dedicated responsibility of a member of our Executive Committee. We have also aligned our structure more effectively in order to maximise the efficiency of our organisation and of our balance sheet. This will allow us to serve our customers even better, to act as a single, integrated company across borders and businesses, and to keep costs firmly under control. A final example relates to the importance of positioning Fortis. The rollout of our international brand campaign, the implementation of behavioural values across the company and the focus on leadership are all key factors in this respect. Fortis has also underscored its commitment to being a truly sustainable and socially responsible organisation by endorsing the revised Equator Principles and the UN Global Compact, developing innovative sustainability policies within our Agri Commodities and Shipping business, and working on full carbon neutrality for all our global operations as of January 2007, thus contributing to a solution for climate change..

(3) Fortis increases long-term financial targets Successful implementation in 2004–06 For the period 2004–06, all targets have been delivered on or are on track, achieving in two years the net profit ambition for 2009: • For 2004–06: compound annual growth rate (CAGR) of 34%, compared to a 10% target for the 2004–09 period; • An average operating leverage well above the 250 basis points target; • Excellent growth (32% CAGR) in Benelux, based on strong customer focus and increased efficiency; • The profit from outside Benelux doubled from EUR 0.4 billion in 2004 to EUR 0.9 billion in 2006, representing a larger share of a growing profit: from 15% in 2004 to 21% in 2006 A new performance culture has been introduced over the same period, with intense leadership training for the top 3,000 managers, the introduction of behavioural values (‘Fortiomas’) for all staff, and an internationalisation of the workforce: one out of three employees currently works outside the Benelux countries. Finally, a new organisational structure was launched around three businesses and five support functions, representing an enhanced operating model. Fortis²: raising the bar As announced in August 2006, Fortis has evaluated its long-term financial targets, which were formulated in January 2005.. To achieve this, the following three growth levers will be applied: Perform², Grow² and Expand² 1. ‘Perform²’: in its established markets and segments, Fortis will protect and strengthen its leadership positions, building scale and client relevance, increasing cross-sell and enhancing efficiency. Revenue and cost synergies – increased return on the investment portfolio, positive effects from the new Insurance and Merchant & Private Banking businesses, and Fortis-wide management of costs – will result in EUR 400 million (EUR 550 million pre-tax) of additional net profit growth. Underlying business growth, combined with these synergies, represent two-thirds of the total net profit growth by 2011. Perform² builds on the enhanced operating model: Fortis will further strengthen its strong positions in established markets. Retail Banking is implementing a more differentiated cross-border distribution organisation, around three client segments: Mass Retail, Affluent and Professionals & Small Enterprises. It will invest EUR 350 million in a harmonised cross-border core banking platform and will increase customer satisfaction through services tailored to each segment. The Personal Banking approach, for instance, will be accelerated by adding 140 Personal Bankers in 2007. At Merchant & Private Banking (MPB), a new organisation will optimise client service and streamline international expansion by formal coordination between business lines, resulting in integration synergies. Continued investment in IT, recruitment and development will reinforce market leadership in the Benelux countries and in specific sectors like Shipping and Commodities. Fortis Annual Results 2006 | 8 March 2007 |. 3. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. The excellent results over the past two years, combined with the new organisational structure, allow Fortis to reconfirm and accelerate its strategy of becoming a leading European financial services provider, with a strong customer focus, renowned for the quality of its services, and growing in the enlarged Europe, and selectively in Asia and North America..

(4) . Insurance is building a new, strengthened organisation, including new common functions to ensure the sharing of best practices and implementation of a single insurance strategy. Strategic initiatives will be developed across the core regions (Netherlands, Belgium, Europe and Asia) in order to leverage skills globally, while creating scale locally. Further investments will be made in multichannel distribution, product/market innovation, operational excellence and enhanced service levels.. This lever entails propelling our growth rate to a higher level. It represents one-third of organic growth to 2011. Businesses will roll out proven models to new markets and segments. Retail Banking, for example, will launch its Personal Banking and Banking for Professionals & Small Enterprises in Poland and Turkey. Further investments will be made in the continued international expansion of consumer finance – primarily in Turkey, Poland and Germany – and in the roll-out of the postal banking model in Ireland and selective new markets. Finally, in asset gathering, Fortis Investments will further enhance its product offering and will expand geographically (including Turkey, South-Korea, Japan and Indonesia). Acceleration in Merchant & Private Banking (MPB) will come from building scale in selected countries, such as Turkey and France, seizing market opportunities in Poland and rolling out MPB capabilities in Asia. The business will compete as a global integrated player in the ECT (Energy, Commodities & Transportation) sectors and will capture opportunities in structured capital markets products and in Clearing, Funds & Custody. It will also leverage the ‘Enterprise & Entrepreneur’ model by extending the Private Banking offer to corporate clients. Fortis Insurance, which entered five new markets in 2006 (Germany, Ukraine, Russia, Turkey and India), will leverage its extensive knowledge of insurance products and distribution models. This will be done in a number of ways, including expanding the bancassurance model and, in the Netherlands, combining strengthened broker distribution with the extension of other distribution channels. Fortis Insurance will also transfer innovative products and proven concepts, such as the Portuguese unit-linked proposition, Belgian multi-product solutions and UK affinity success, to other markets. In Asia, finally, it will build on strong forecast regional growth to further expand the product portfolio and distribution channels. 3. ‘Expand²’: continue external growth: further pursue selective add-on acquisitions within strict investment criteria: acquisitions should fit from a strategic, resource and financial point of view. For 2004–11, this translates into the following long-term financial targets: • Compound annual growth rate (CAGR) of net profit per share of at least 15% (2004-11); This leads to a commitment to achieve a 12% CAGR (2006–11) based on the 2006 cycle-neutral profit base* of EUR 3.8 billion • Return on equity of 18.5% and risk-adjusted return on risk-adjusted capital (RARORAC) of 18.5% (compared to 15% before) • Average operating leverage of at least 250 basis points • 30% of net profit coming from outside Benelux by 2009 • Cash dividend at least stable or growing in line with long-term EPS growth * 2006 net profit of EUR 4.35 billion is made cycle-neutral to EUR 3.8 billion when substituting impairments on loans by their expected loss and adjusting the treasury and financial markets income at Merchant Banking to EUR 900 million, due to exceptional gains in trading and private equity.. Fortis Annual Results 2006 | 8 March 2007 |. 4. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. 2. ‘Grow²’: invest in growth engines – i.e. selected core competencies – to enter new markets, launch new business activities and unlock new value chains. The target for these activities is to grow at a CAGR of at least 15% for the period 2006–11;.

(5) 1. Fortis 1.1. Full year 2006 compared with full year 2005 Net profit – Fortis Net profit before results on divestments in 2006 grew 24% to EUR 4,351 million. Results improved across Banking and Insurance, while General reported lower results. Net profit for 2006 went up 10% on the previous year, which benefited from the divestment of Assurant (EUR 443 million). Net profit – Banking Full-year net profit at Banking clocked in at EUR 3,149 million, a substantial increase of 29% or EUR 715 million compared with year-end 2005. This outstanding performance was achieved thanks to buoyant commercial activity, higher treasury and financial markets results, lower changes in impairments and a lower effective tax rate. Expenses rose mainly due to accelerated investments in growth, new hiring and the consolidation of acquisitions. Net profit – Insurance Net profit for 2006 increased 16% to EUR 1,420 million, with Life advancing 24% to EUR 924 million and Non-Life rising 4% to EUR 496 million. At Life, higher investment income and higher capital gains, partly offset by the result-related commission paid to Retail Banking in Belgium, fuelled the 11% increase in pretax results. A lower effective tax rate owing to a more favourable capital gains mix also contributed to the rise in Life net profit. Non-Life technical results advanced 7%, chiefly owing to the improved combined ratio. Higher technical results in the Dutch Accident & Health market and better results at Motor compensated for lower results at Fire. Net profit at Non-Life went up 4%, in line with higher technical results.. The unusually high net profit for 2005 reflects the positive impact of the Assurant related transactions in the first quarter of that year. Excluding this transaction, the negative result increased EUR 57 million to EUR 218 million compared with 2005. The net decline was the result of several offsetting elements. Positive contributors were EUR 91 million – EUR 13 million of which in the fourth quarter – in surrender penalties received from group entities owing to early loan repayments and lower eliminations of treasury share revenues. Negative elements were higher financing charges due to the acquisition of Fortis Bank Insurance from Fortis Bank Belgium in the context of the Fortis Insurance Belgium merger, a lower positive change in the fair value of the mandatory exchangeable bond (MEB) convertible into Assurant shares (EUR 52 million compared with EUR 76 million last year) and higher costs related to the promotion of the Fortis brand.. Fortis Annual Results 2006 | 8 March 2007 |. 5. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. Net profit – General.

(6) 1.2. Fourth quarter of 2006 compared with third quarter of 2006 Key figures Fortis (in EUR million). Q4 2006. Net profit before results on divestments. 749. - Banking - Insurance - General Divestments Net profit EPS (in EUR) Before results on divestments Net equity per share (in EUR). Q3 2006. 884 505 333 (89). 749 0.58. (15%) 593 367 (76). 884 0.69 0.58. 15.98. Change. (15%) (9%) 18% (15%) (16%). 0.69 15.41. (16%) 4%. Banking Fourth-quarter net profit came to EUR 505 million, down 15% on the previous quarter, as increased operating expenses and higher changes in impairments offset 9% revenue growth. Revenue momentum was sustained in the fourth quarter, with top-line growth of 9% driven by higher fees and commissions as well as treasury and financial market results, while activity-based net interest income declined 3%. Fourthquarter operating expenses contained several one-off elements such as a EUR 40 million early departure provision, while investments in growth accelerated at the end of the year. Insurance Fourth-quarter net profit came down 9% to EUR 333 million. Higher results at Life were more than offset by lower results at Non-Life, due to seasonality factors.. Net profit for the fourth quarter came down EUR 13 million on the third quarter as a result of lower changes in the fair value of the MEB and higher branding costs. Lower eliminations of treasury share revenues, a loan surrender penalty and a lower tax rate partly compensated for this decline.. Fortis Annual Results 2006 | 8 March 2007 |. 6. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. General.

(7) 1.3. Solvency in EUR billion. 31 December 2006. 31 December 2005. Net core capital. 27.1. 23.1. Legally required minimum Surplus above legally required minimum Surplus above legally required minimum (as %). 13.7 13.4 98. 12.2 10.9 89. Fortis's floor Net core capital as percentage of Floor. 21.5 126. 19.3 120. Fortis’s net core capital stood at EUR 27.1 billion, or 126% of the internal minimum requirement floor. Net core capital excludes any unrealised capital gains on the bond portfolio, goodwill and other intangible assets and any elements of embedded value, but includes unrealised gains on real estate and hybrid Tier 1 loans. Compared with year-end 2005, net core capital advanced EUR 4.0 billion as a result of retained profit (EUR 2.8 billion), the revaluation of equities (EUR 1.2 billion), the issue of a new hybrid loan of EUR 0.5 billion, adverse movements in currency translation reserves, and the reversal of non-trade derivatives and hedge accounting. The Tier 1 ratio of Fortis Bank decreased from 7.4% at year-end 2005 (calculated based on Belgian accounting principles) to 7.1% at the end of December 2006 (based on IFRS). The positive impact of retained profit after dividends, the transfer of FB Insurance to Fortis Insurance and the transfer of preference shares in Fortis Insurance to Fortis Utrecht were more than offset by the impact of the implementation of IFRS, the 13% rise in risk-weighted commitments driven by the 14% underlying increase in loans to customers, and growth of committed credit lines to customers and the smaller proportion of reverse repurchase agreements in the mix of loans to customers. The increase in risk-bearing capital can be attributed to the profit for the year less dividends paid by the bank, the issue of new subordinated loans and the transfer of FB Insurance.. Fortis has communicated on its solvency using the NCC/cap/floor model since 1998. Fortis’s net core capital remained between the cap and the floor throughout this period, thereby balancing the interests of shareholders and bondholders. Although the cap/floor model has served its purpose well, it has some limitations that have prompted the introduction of a new model based on target capital: . Granularity: the cap/floor model only provides a group-wide view and does not give specific insight into capital management at Banking or Insurance. Clarity on excess capital: net core capital surplus to the floor does not equal excess capital. Guidance: as long as the net core capital remains between the cap and the floor, the model does not provide guidance on the direction of capital management. Market practice: a capital model based on target capital is more common in the market. Assessment of available capital: the introduction of IFRS has changed the regulators' definition of net core capital. Regulators now take a more restricted view of available capital than they did previously. Fortis's timing in launching its new target capital model is appropriate, as most regulators have now reached conclusions on how IFRS figures should be used in the computation of available capital. Fortis Annual Results 2006 | 8 March 2007 |. 7. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. New capital model.

(8) Building a target model To overcome the limitations of the cap/floor model, Fortis has decided to introduce a new model based on target capital. The new model provides greater insight into the specific situation at Banking and at Insurance, gives guidance regarding future capital management action, is in line with market practice and is consistent with the regulators' view on capital. The new model consists of three components: . A Fortis Bank capital target set at a Tier I ratio of 7%, including 1% hybrid capital A Fortis Insurance capital target set at 225% of the regulatory minimum, which includes 50% of hybrid capital A Group leverage target (at General) set at 15% of the total of the core equity of Banking plus the core equity of Insurance, implying that at the level of Banking and Insurance 15% of their combined target equity could be financed by group debt. The three components together result in a group core equity target. The multiple compared with regulatory capital targets is based on extensive analysis and set at a level that satisfies the requirements of both regulatory supervisors and rating agencies, assuming AA-range ratings for core operations. Internal risk views based on stress scenarios have also been taken into account in these capital targets, which are based on the current risk profile of Fortis’s operations. A change in risk profile could result in a change of targets. Assuming optimum financing of the Banking and Insurance sectors, taking into account the 15% group leverage, these targets combine to form the one group target for core equity.. As of 31 December 2006, the difference between actual and target capital under the new Fortis capital model was comparable to the capital surplus above the midpoint between the floor and the cap under the old capital model. The group core equity target at 31 December 2006 was EUR 17.7 billion, while the available core equity was EUR 19.5 billion. The positive difference of EUR 1.8 billion under the new model compares with the surplus above the midpoint between the floor and the cap of EUR 2.9 billion. The disparity between the two models can be attributed to the deduction of the final 2006 dividend to be paid in June 2007, which formed part of net core capital under the old model. The Fortis capital model and the targets have already been presented to the regulators and rating agencies. The Fortis capital model will replace the NCC/cap/floor model in future communications on solvency and capital as of the first quarter of 2007. Basel II Fortis is well on track to compliance with Basel II. By choosing the most advanced approaches, Fortis shows its commitment towards a superior Risk Management. It has opted to apply the Advanced Internal Ratings Based Approach (AIRBA) to credit risk and will continue to apply the Value-at-Risk Approach (VaR) to market risk. Fortis will take an Advanced Measurement Approach (AMA) to the new layer of operational risk, which will introduce additional capital requirements compared to Basel I. Fortis is confident it will achieve the maximum level of capital relief allowed by the regulators, which is limited to 10% in 2008 and an additional 10% in 2009 , compared to Basel I requirements.. Fortis Annual Results 2006 | 8 March 2007 |. 8. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. This model provides Fortis with a new and strict framework for managing its capital. Should actual core equity differ materially from the target, Fortis will take the necessary measures to bring it back in line within a reasonable timeframe..

(9) 1.4. Economic capital and RARORAC Background Economic capital is a consistent and easily compared measure applicable to all risk types and businesses at Fortis. It serves as an indicator of Value-at-Risk (VaR) with a horizon of one year and a confidence interval of 99.97%, and therefore represents very extreme events. The methodology is refined and improved on an ongoing basis. Economic capital (ECAP) is calculated separately for each risk type per business. We then determine the total economic capital at business level, at banking/insurance level and for Fortis as a whole. The figures so obtained are used for a range of internal monitoring and management purposes. Since it is extremely unlikely that all risks will become reality at the same time, an allowance is made for diversification benefits when adding up the individual risks. The result is a figure for total economic capital at group level that is significantly lower than the sum of the individual risks. The Risk-Adjusted Return on Risk-Adjusted Capital (RARORAC) is a performance yardstick that establishes a consistent relationship between the risks and returns of Fortis’s various activities. RARORAC is calculated by dividing the risk-weighted return by the economic capital after the incorporation of diversification benefits. The risk-adjusted return is itself determined on the basis of net profit, with provisions for credit risks being replaced by cycle-neutral expected losses.. (EUR billion) Retail Banking Merchant Banking Commercial & Private Banking Other Banking Total Banking. ECAP FY 2006 FY 2005 3.9 3.3 4.8 3.7 2.7 2.5 1.2 1.4 12.6 10.9. RARORAC FY 2006 FY 2005 27% 26% 22% 22% 23% 18% 22% 20%. Insurance Belgium Insurance Netherlands Insurance International Total Insurance. 1.5 1.6 0.6 3.7. 1.5 1.9 0.6 4.1. 35% 36% 33% 35%. 30% 27% 35% 30%. General. 0.1. 0.1. -. -. 16.4. 15.1. 24%. 22%. Total Fortis. RARORAC for Total Fortis further increased from 22% in 2005 to 24% in 2006. All businesses reported a RARORAC above the 15% long-term hurdle. Our new capital management model has now raised this hurdle to 18.5%.. Fortis Annual Results 2006 | 8 March 2007 |. 9. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. Movements in 2006.

(10) Total ECAP for Total Fortis rose by 9%, from EUR 15.1 billion to EUR 16.4 billion. The increase was generated by Banking and was partly offset by a decrease at Insurance. Healthy commercial developments across the board, and especially at Merchant Banking and Retail Banking, fuelled the increase at Banking. The decline at Insurance resulted from a lower ALM risk at Fortis Insurance Netherlands, mainly due to a higher yield environment and more advantageous diversification benefits. RARORAC at Retail Banking improved slightly to 27% in 2006, thanks to the fact that it maintained a strong risk-return profile in 2006 despite investing heavily in growth. The sharp rise in income was largely counterbalanced by an increase in economic capital. At 22% in 2006, RARORAC at Merchant Banking was stable compared to 2005. This demonstrates Merchant Banking's ability to sustain high, controlled growth in 2006: the sharp rise in net profit (up 28 % to EUR 1.15 billion in 2006) was in line with the growth of the risk profile (up 32% to EUR 4.8 billion). This growth was mainly caused by the increase in credit risk ECAP for Corporate & Institutional Banking and Specialised Finance (which is in line with the growing corporate portfolio) and to a lesser extent for Global Markets (counterparty risk on OTC derivatives, including Securities Borrowing & Lending activities). RARORAC at Commercial & Private Banking went up by 5% to 23% in 2006. This increase was mainly because enhanced profitability at Commercial & Private Banking amply compensated for the growth in economic capital, which can be entirely attributed to the rise in the business contribution to ALM economic capital. Whereas ECAP has remained stable at Fortis Insurance Belgium, the rise in RARORAC from 30% to 35% can chiefly be attributed to the 13% increase in the net profit of Fortis Insurance Belgium, due to higher capital gains.. RARORAC at Fortis Insurance International remained very high at 33%, driven by substantially higher profit in all countries as a result of various growth initiatives. The slight decline in RARORAC in 2006 compared to 2005 was due to the more refined method of calculating ALM risks that was introduced in 2006.. Fortis Annual Results 2006 | 8 March 2007 |. 10. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. RARORAC at Fortis Insurance Netherlands grew from 27% to 36%. This sharp rise was generated by higher net profit, mainly due to improved technical results at Non-life and a decrease in ECAP caused by a higher yield curve and more advantageous diversification benefits..

(11) 1.5. Dividend Total proposed dividend of EUR 1.40 per share in cash, up 21% from EUR 1.16 for 2005. As an interim dividend of EUR 0.58 per share was paid in September 2006, the proposed final dividend amounts to EUR 0.82 per share. In keeping with the Fortis dividend policy, under normal circumstances Fortis pays an interim dividend amounting to 50% of the full-year dividend for the previous year. Timetable final dividend for 2006 23 May 2007 Annual General Meetings of Shareholders 25 May 2007 Ex dividend date for Fortis shares 25 May 2007 Dividend election period starts 8 June 2007 Dividend election period ends 14 June 2007 Payment of the 2006 final dividend Timetable interim dividend 2007 9 August 2007 Publication of financial statements for first half 2007 10 August 2007 Ex dividend date for Fortis shares 10 August 2007 Dividend election period starts 29 August 2007 Dividend election period ends 6 September 2007 Payment of the 2007 interim dividend 1.6. Changes in FTEs Fortis continued to be a net hirer in 2006, when 10,562 FTEs joined the company (9,318 FTEs new recruitments and 1,244 through acquisitions), and 7,921 FTEs left the company. At the end of 2006, 33% of the workforce was based outside the Benelux countries. 31 December 2006 56,886. 31 December 2005 54,245. Bank Insurance General. 43,575 13,106 205. 40,937 13,083 225. Benelux countries Outside Benelux. 38,169 18,717. 37,814 16,431. Fortis Annual Results 2006 | 8 March 2007 |. 11. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. In FTE Fortis.

(12) 2. Banking Key figures – Banking (in EUR million). FY 2006. FY 2005. Q4 2006. Q3 2006. 10,324. 8,991. 15%. 2,446. 2,246. 9%. Total expenses. 6,315. 5,603. 13%. 1,759. 1,549. 14%. Profit before income tax. 3,851. 3,179. 21%. 597. 679. (12%). Net profit before results on divestments Divestments Net profit. 3,149 3,149. 2,434 2,434. 29%. 505 505. 593 593. - Cost/Income Ratio 61.2% - Operating leverage 2.1% 1) - Credit Loss Ratio (basis points) 7 - Tier 1 ratio 7.1% - FTEs 43,575 1) Annualised, as a % of average credit-risk-weighted commitments.. 62.3%. 71.9%. 69.0%. 10 7.4% 40,937. 15. 3. 43,578. 43,015. Total income. Change. 29%. 6%. Change. (15% ) (15% ). 1%. Analysis. Full-year net profit at Banking clocked in at EUR 3,149 million, a substantial increase of 29% or EUR 715 million compared with 2005. This outstanding performance was achieved thanks to buoyant commercial activity, higher treasury and financial markets results, lower changes in impairments and a lower effective tax rate. Expenses rose mainly due to accelerated investments in growth, new hires and the consolidation of acquisitions. Fourth-quarter net profit amounted to EUR 505 million, down 15% on the previous quarter, as increased operating expenses and higher changes in impairments offset 9% revenue growth. Fourth-quarter operating expenses contained several one-off elements such as a EUR 40 million early departure provision, while investments in growth accelerated at the end of the year. Around half of the rise in expenses compared with the third quarter was due to permanent factors. Impairments peaked in the fourth quarter, but credit quality remained strong as illustrated by a slightly lower level of non-performing loans. Revenue momentum was sustained in the fourth quarter, with top-line growth of 9% driven by higher fees and commissions as well as treasury and financial market results, while net interest income declined on lower ALM income. Total income for the full year advanced to EUR 10,324 million, up 15% from EUR 8,991 million at yearend 2005, reflecting ongoing robust customer activity, a substantially higher contribution from treasury and financial markets and the inclusion of acquisitions. Excluding the latter, organic year-on-year growth was still substantial at 12%.. Fortis Annual Results 2006 | 8 March 2007 |. 12. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. • All business lines contribute to 29% rise in Banking net profit to EUR 3,149 million • Total income up 15% to EUR 10.3 billion; 74% of increase stems from activity-based net interest income and net commissions • Funds under management climb to EUR 191 billion, up 16%, mainly on net inflow of EUR 17 billion • Organic operating leverage reaches 370 basis points • Benign credit environment leads to exceptionally low credit loss ratio of 7 basis points.

(13) The upward trend witnessed in the first nine months of the year continued on into the final quarter. Total income hit EUR 2,446 million, up 9% on the third quarter, fuelled by an upsurge in net commissions and fees, stronger treasury and financial markets income and higher realised capital gains. Net interest income was lower due to a number of one-off benefits in the third quarter and the impact of a flattened yield curve. Net interest income on interest margin products reached EUR 5,087 million for full-year 2006, up 11% on 2005, or 7% adjusting for the impact of acquisitions. Growth was generated by vigorous commercial activity and better ALM results. Significant volume growth was partly offset by contracting margins. Underlying loan volume (excluding reverse repurchase agreements) rose 14% compared with year-end 2005. Net interest income from ALM benefited from higher short-term interest rates, higher retained earnings and a slightly higher duration of equity. Total loans to customers came to EUR 288 billion, up 3% from year-end 2005. Reverse repurchase agreements with customers waned, masking solid underlying loan growth of 14%. This rise in loans can be explained by expansion of the residential mortgages portfolio at Retail Banking (up 15% on year-end 2005 to EUR 57 billion), Commercial & Private Banking loans (up 14% to EUR 62 billion) and Corporate & Institutional Banking and Specialised Finance loans (up 37% to EUR 49 billion). In line with the strong underlying loan volume growth, credit risk-weighted commitments (CRWCs) came to EUR 222 billion at the end of the year, up 12% on year-end 2005. Total risk-weighted commitments, including market risk-weighted commitments of EUR 18 billion, were up 13% on 2005, reaching EUR 240 billion at the end of 2006.. Funds under management ended the year at EUR 191 billion, 16% higher compared with year-end 2005. Net inflow hit a record EUR 17 billion for the year, EUR 7 billion of which came in at Private Banking and EUR 10 billion at Fortis Investments. Growth at Private Banking was due chiefly to network expansion and effective cross-selling to Commercial Banking and Trust customers. Fortis Investments' substantial net inflows were the result of its strong focus on the diversification of distribution channels, with major successes among external institutional customers in countries like Italy, Spain, France and Germany. Net commissions and fees amounted to EUR 2,764 million, up 21% on 2005. Acquisitions accounted for 4% of the increase. Banking benefited from a new EUR 83 million result-related commission from Fortis Insurance Belgium on sales of insurance products through the bank channel. Even excluding this factor, though, net commissions and fees went up organically by 13%. This healthy growth was achieved thanks to fees related to assets under management (up 18%) and security transactions (up 24%). Fees for assets under management benefited from high net inflows and higher asset values, resulting in a substantially higher fee base. Growth of securities-related fees was recorded on the back of much more vigorous activity at the exchanges. Fourth-quarter net commissions and fees recovered to EUR 696 million owing to increasingly robust market activity, lifting securities-related fees following the seasonal slowdown in the third quarter. Asset management fees increased on growth of assets under management generated by high net intake and favourable market developments.. Fortis Annual Results 2006 | 8 March 2007 |. 13. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. Fourth-quarter net interest income from interest-margin products declined to EUR 1,264 million, down 3% on the previous quarter. Slightly higher net interest income at all business lines was more than offset by lower ALM results. More than half of this decline was the result of one-off positive factors booked in the third quarter, the remainder can be attributed to the impact of the flattening yield curve. Underlying loans to customers (excluding reverse repos) advanced 1% on the previous quarter, in line with 1% growth of credit risk-weighted commitments to EUR 222 billion at year-end 2006..

(14) Capital gains on the investment portfolio came to EUR 530 million in 2006, rising EUR 33 million or 7% from the level achieved in 2005. Realised capital gains in 2006 were primarily equity-based and eventdriven, bringing down the overall effective tax rate, while the 2005 gains were essentially bond-driven. The EUR 168 million in capital gains realised on the investment portfolio in the fourth quarter is mainly attributable to the sale of Banksys shares, combined with additional gains on both the equity and the bond investment portfolios. Treasury and financial markets revenues rose sharply by 26% to EUR 1,384 million for full-year 2006. This activity benefited from robust trading results, higher market values of financial market instruments and private equity shareholdings, and seasonally strong global securities-financing activities in the second quarter. A EUR 180 million gain, posted as a result of a non-qualifying hedge on the part of the mortgage portfolio, was largely neutralised by one-off surrender penalty charges of EUR 91 million on early repayment of intercompany loans and negative revaluation of derivative positions. These penalty charges were recorded as benefits for the General segment, neutralising the impact at Fortis level. Fourth-quarter treasury and financial markets revenues surged to EUR 182 million from EUR 66 million in the third quarter. Changes in fair value of the non-qualifying hedge in the third and fourth quarters largely explain this increase. A gain of EUR 34 million was posted in the fourth quarter, while a EUR 74 million loss was booked in the previous quarter. Merchant Banking’s good fourth-quarter trading performance combined with solid customer flows more than offset the negative impact of higher short-term interest rates on Global Markets funding and the decline in market value of the credit hedging portfolio as a result of tighter credit spreads.. The benign credit environment resulted in very low changes in impairments in 2005 and 2006, mainly due to net releases posted by Merchant Banking in both years. Impairment levels at Commercial Banking improved thanks to the strong underlying credit quality while Other Banking benefited from provision releases for Belgolaise. The change in impairments for Retail Banking increased year-on-year, reflecting higher credit provisions related to the integration of the acquisitions in Germany and Turkey, although underlying credit quality at Retail Banking remained sound. Changes in impairments rose to EUR 90 million in the fourth quarter from a very low EUR 18 million in the third quarter. This increase stems from much lower releases at Merchant Banking and additional loan provisioning at Commercial Banking for specific accounts in Belgium and the Netherlands. The annualised credit loss ratio for the year (expressed as a percentage of average credit risk-weighted commitments) stood at 7 basis points, in line with expectations and below the 10 basis points posted for full-year 2005. The 2006 credit loss ratio is considerably lower than the expected cross-cycle credit loss ratio of around 25 basis points. Total expenses ended up at EUR 6,315 million for the full year, up EUR 712 million or 13% on 2005. Organic year-on-year growth amounted to only 8%, resulting in an organic operating leverage of 370 basis points. The full year cost/income ratio improved by 1% to 61.2%. Excluding acquisitions, the cost /income ratio stood at 59.8% in 2006, a 2% improvement on 2005.. Fortis Annual Results 2006 | 8 March 2007 |. 14. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. Other income for the full year came to EUR 272 million, unchanged from 2005. While 2005 benefited from an exceptional reimbursement from the Belgian Deposit Protection Fund, 2006 was impacted favourably by higher income on expenses recharged to Insurance..

(15) Staff expenses rose 8% to EUR 3,625 million for full-year 2006. A EUR 110 million restructuring charge related to the upgrade of the quality of management was taken in 2005, while EUR 40 million in early departure costs was posted in the fourth quarter of this year. Adjusting both years for these exceptional provisions, staff expenses rose by 10% year-on-year partly due to acquisitions. The organic increase stood at 5% explained by the impact of hiring and wage drift, which were partly offset by exceptional releases in health insurance and pension provisions. Fourth-quarter staff expenses climbed to EUR 956 million, up EUR 36 million or 4% on the third quarter, owing to the early departure restructuring charge of EUR 40 million taken in the fourth quarter. Total Banking FTEs stood at 43,575 at the end of 2006, an increase of 2,638 or 6% compared with year-end 2005. Organic hiring, representing about half of year-on-year growth, supported more robust commercial activity at Commercial & Private Banking and Merchant Banking. Other expenses came to EUR 2,690 million for the full year, 20% higher than in 2005. Part of this increase is attributable to the integration of acquisitions, putting organic growth at 15%, in line with revenue growth. Other expenses rose chiefly due to investments in technology infrastructure, consultancy, growth engines and branding in support of our long-term growth plans. Other expenses in the fourth quarter were marked by major one-off charges and a significant acceleration of investments. Other operating expenses came to EUR 803 million, rising EUR 174 million on the third quarter. The first-time consolidation of Houston-based Cinergy, Marketing & Trading was responsible for EUR 13 million in additional costs compared with the previous quarter. Around half of the remaining increase of EUR 161 million was due to the acceleration of investments in our growth strategy, made primarily in marketing and branding, technology infrastructure upgrades, the rollout of consumer finance in Germany and distribution expansion in Turkey. Major one-off charges were also booked in the last quarter, explaining most of the remaining increase.. Fortis Annual Results 2006 | 8 March 2007 |. 15. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. The effective tax rate stood at 18% in 2006, 5% lower than in 2005. This decrease can be attributed to the structure of trading revenues and a higher level of (equity-based) tax-exempt capital gains. The establishment of a treasury centre earlier in the year also contributed to lower effective tax rate..

(16) 2.2. Performance per Banking Business (For full details see Financial and Operational Review) 2.2.1. Retail Banking Key figures – Retail Banking. FY 2006. FY 2005. 1,090. 862. Cost/Income Ratio Operating leverage. 65.4% 0.7%. 65.8%. FTEs. 17,030. 14,186. Net profit (in EUR million). Change. 26%. 20%. Q4 2006. Q3 2006. 214. 208. 71.5%. 70.6%. 17,030. 16,874. Change. 3%. 1%. Net profit in Retail Banking passed the EUR 1 billion mark, climbing to EUR 1,090 million for full-year 2006, up 26% on 2005. This steep rise was fuelled by robust 15% income growth on the back of higher commissions, increased ALM income and a lower tax rate. Total expenses were up 14%, translating into a 65 basis-point operating leverage for 2006, despite heavy investments in growth. Excluding the consolidation of Consumer Finance Germany and Retail Bank Turkey, total income growth (+11%) significantly outpaced cost growth (+6%), which reflected in a 570 basis-point organic operating leverage. At EUR 214 million, fourth-quarter net profit rose slightly above the third quarter level, as a 10% increase in total income and lower changes in impairments were partly offset by a 12% rise in expenses and a 6% higher effective tax rate. 2.2.2. Merchant Banking. Net profit (in EUR million) Cost/Income Ratio Operating leverage FTEs. FY 2006. FY 2005. 1,348. 1,007. 52.1% 11.1%. 57.5%. 4,995. 4,159. Change. 34%. 20%. Q4 2006. Q3 2006. 139. 231. 81.0%. 69.8%. 4,995. 4,749. Change. (40%). 5%. Net profit soared 34% to EUR 1,348 million in 2006. Growth was fuelled mainly by a solid 19% rise in total income to EUR 2,744 million, resulting in 11% operating leverage. All business lines benefited from sustained commercial activity, generating a strong 24% growth in commercial loans, increased cross-selling and an exceptional performance in trading and private equity. Merchant Banking's fast-growing niches such as Energy, Commodities & Transportation (ECT), Structured Products and Securities Financing continued to strengthen their leading positions in the Benelux region and expanded across Asia and North America. These sustainable niches became increasingly important growth engines for Merchant Banking in 2006 and now represent more than 50% of total income. ECT generated 19% of total income, services to hedge funds and other institutional investors 27%, and structured products and complex financing solutions for financial institutions accounted for 9%. Total income came to EUR 505 million in the fourth quarter, up 2% on the previous quarter. Growth was supported by a 2% increase in net interest income on interest-margin products and a 3% rise in net commissions and fees. Trading gains remained stable. Higher expenses, due chiefly to hiring and integration costs related to acquisitions, and lower releases of provisions for impairments depressed net profit by 40% quarter-on-quarter. Fortis Annual Results 2006 | 8 March 2007 |. 16. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. Key figures – Merchant Banking.

(17) 2.2.3. Commercial & Private Banking Key figures – Commercial & Private Banking. Net profit (in EUR million) Cost/Income Ratio Operating leverage FTEs. FY 2006. FY 2005. 671. 460. 60.0% 3.5%. 61.7%. 8,024. 6,119. Change. 46%. 31%. Q4 2006. Q3 2006. 113. 152. 66.2%. 62.9%. 8,024. 7,810. Change. (26%). 3%. Net profit for 2006 clocked in at EUR 671 million, up 46% on 2005. Total income grew by 20% to EUR 2,502 million, 15% was organic, stemming from a sharp rise in net interest income (up 15%), net commissions and fees (up 20%) and stronger allocated ALM results. With organic cost growth of 6%, organic operating leverage stood at 9%.. Fortis Annual Results 2006 | 8 March 2007 |. 17. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. Net profit fell by EUR 39 million to EUR 113 million in the last quarter of 2006: stronger commissions were more than offset by a higher change in impairments and the rise in total expenses. Total revenues went up 14% on the third quarter as net interest income advanced 2% and net commissions and fees rose by 12%, with volumes picking up after a seasonally slow third quarter. Higher allocated ALM results further contributed to the increase in revenues. Total expenses grew by 20% quarter-on-quarter due to additional marketing costs, investments in IT projects and a number of one-off elements..

(18) 3. Insurance Key figures – Insurance (in EUR million) Net profit before results on divestments - Life - Non-Life - Other. FY 2006. FY 2005. 1,420 924 496. 1,225 748 477. 1,420. Change. Q4 2006. Q3 2006. Change. 16% 24% 4%. 333 245 88. 367 203 164. (9% ) 21% (46% ). 1,225. 16%. 333. 367. (9% ). (4.3% ) 13,106. 13,083. 0%. 13,106. 13,094. 0%. 9,147 2,978. 8,256 3,225. 11% (8% ). 3,283 984. 1,954 653. 68% 51%. 12,125. 11,481. 6%. 4,267. 2,607. 64%. 638 811. 691 858. 171 220. 166 216. 3% 2%. 5,033. 4,775. 5%. 1,080. 1,163. (7% ). 573 606 96.1%. 537 576 96.0%. 7% 5%. 91 116 101.4%. 183 183 93.8%. (50% ) (37% ). Net profit Operating leverage FTEs Life Gross written premiums Investment contracts without DPF Gross inflow Technical result Operating margin Non-Life Gross written premiums Technical result Operating margin Combined ratio. (8% ) (5% ). Analysis • • • •. Net profit for the year up 16% at EUR 1,420 million, driven by strong performance at Life Life gross inflow rises 6% to EUR 12.1 billion; funds under management up 8% to EUR 91 billion Robust growth of value added by new business (+24%) and embedded value (+27%) Gross written premiums at Non-Life advance 5% to EUR 5.0 billion with a stable combined ratio of 96.1%. Fortis Insurance turned in another excellent performance in 2006, strengthening its position in most of its markets. In addition to being a leader in several European markets, it further strengthened a number of top positions in Asia. Its partnerships with key domestic players in Europe and Asia are yielding significant premium inflows from outside the Benelux region, and operations in Germany, Russia, Ukraine and Turkey were recently launched through start-ups and acquisitions, whilst the operations in India will commence in 2007. Net profit for 2006 increased 16% to EUR 1,420 million, with Life advancing 24% to EUR 924 million and Non-Life rising 4% to EUR 496 million.. Fortis Annual Results 2006 | 8 March 2007 |. 18. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. Divestments.

(19) At Life, higher investment income and higher capital gains, partly offset by the result-related commission paid to Retail Banking in Belgium, fuelled the 11% increase in pre-tax results. A lower effective tax rate owing to a more favourable capital gains mix further contributed to the rise in net profit. Non-Life technical results advanced 7%. Higher technical results in the Dutch Accident & Health market and better results at Motor more than compensated for lower results at Fire. Net profit at Non-Life went up 4%, in line with higher technical results. Fourth-quarter net profit came down 9% to EUR 333 million. Higher results at Life were more than offset by lower results at Non-Life, due to seasonality factors. Operating costs went up 7% in 2006, owing to business expansion, acquired distribution skills and integration expenses. Operating costs in the Netherlands remained virtually stable, while volumes grew. In Belgium, operating costs increased as a result of the integration of Fortis AG and FB Insurance. Operating costs of the international activities came in higher, too, as Fortis Insurance continued to pursue its international growth strategy and Outright (acquired by Fortis UK) was included for the full year. The insurance activities in Belgium, the Netherlands and International were brought together under the leadership of one CEO. The new organisation will allow Fortis Insurance to better align its core competences and resources and to achieve cross-border synergies. It expects to reap the benefits of sharing best practices while optimising the local character of the business in support of its growth strategy. Fortis Insurance is formulating a strategy centred around products/market innovation, multi-channel distribution, operational excellence, international expansion and an organisation equipped to anticipate developments in the insurance industry.. At EUR 12,125 million, gross inflow at Life was 6% higher than in 2005, benefiting from an exceptionally large group life contract in the Netherlands in the fourth quarter involving EUR 710 million. Excluding this contract, growth in the Netherlands (3%) and Belgium (4%) was offset by lower inflows in Portugal, resulting from the decision to favour returns over volumes in that country. Gross inflow came in at EUR 4,267 million in the fourth quarter, soaring 64%. Excluding the above contract, Life inflow went up 36%, fuelled by the typical year-end rally, which was seen in all countries and was especially strong in Belgium. Pre-tax profit at Life increased 11% to EUR 1,161 million, with all businesses improving underlying profitability. Fortis Insurance Belgium felt the impact of the result-related commission (EUR 75 million in Life) paid to Fortis Bank Belgium for the first time in 2006. Larger volumes in funds under management, higher capital gains and the lower overall effective tax rate lifted net profit by 24% to EUR 924 million.. Fortis Annual Results 2006 | 8 March 2007 |. 19. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. Life.

(20) Market Consistent Embedded Value Insurance Total. Insurance Belgium. Insurance Netherlands. Insurance International. 10,830. 4,094. 5,612. 1,124. (208). (130). (58). (20). Embedded Value beginning 2006 Accrual during the year. 10,623 2,898. 3,964 1,442. 5,554 1,248. 1,105 208. Accrued value year-end 2006 Change year-on-year. 13,521 27%. 5,406 36%. 6,802 22%. 1,313 19%. Dividend payment to Fortis. (1,214). (573). (553). (88). Embedded Value year-end 2006. 12,307. 4,833. 6,249. 1,225. EUR million Embedded Value year-end 2005 Opening adjustments. The Embedded Value of Life insurance operations provides additional information on the value of the existing contracts and the acquired new business. The 2006 figures have been calculated in accordance with the European Embedded Value (EEV) principles. The transition to Market Consistent Embedded Value reporting, which started in 2005, has now been completed. The Value Added by New Business (VANB) is calculated applying the same Market Consistent approach as used for calculating the total Embedded Value (EV). After taking into account opening adjustments, the Embedded Value increased by 27% to EUR 13.5 billion before dividends. This increase is mainly driven by a strong Value Added by New Business, higher interest rates and strong growth in share values.. Value added by new business - Traditional Methodology (1) VANB (2). EUR million. PVNBP (3). New business margin FY 2006 FY 2005. FY 2006. FY 2005. Change. FY 2006. FY 2005. Change. Insurance Belgium Insurance Netherlands. 240 50. 164 45. 46% 9%. 4,760 2,051. 4,837 2,044. (2%) 0%. 5.04% 2.42%. 3.39% 2.22%. Insurance International. 84. 91. (8%). 3,705. 3,346. 11%. 2.26%. 2.72%. 373. 300. 24%. 10,516. 10,227. 3%. 3.55%. 2.94%. Insurance Total (1). A look-through approach is applied to the new result-related commission between Fortis Insurance Belgium and Fortis Retail Bank. (2). VANB: Value Added by New Business. (3). PVNBP: Present Value of New Business Premiums. Belgium, implying no allowance in the EV and VANB for any payments under this commission arrangement. Fortis Annual Results 2006 | 8 March 2007 |. 20. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. After the dividend payment to Fortis, Embedded Value reached EUR 12.3 billion at year-end 2006..

(21) Value added by new business - Market Consistent Methodology (1) VANB (2) FY 2006. PVNBP (3) FY 2006. New business margin FY 2006. Insurance Belgium. 189. 5,169. 3.66%. Insurance Netherlands Insurance International. 85 103. 2,344 3,822. 3.64% 2.69%. Insurance Total. 377. 11,335. 3.33%. EUR million. (1) A look-through approach is applied to the new result-related commission between Fortis Insurance Belgium and Fortis Retail Bank Belgium, implying no allowance in the EV and VANB for any payments under this commission arrangement. The Value Added by New Business (VANB) is calculated applying the same Market Consistent approach as used for calculating the total Embedded Value (EV). The volume of new Life business is measured by the (market consistent) Present Value of New Business Premiums (PVNBP). In order to allow for comparison, the VANB and PVNBP 2006 have also been calculated applying the traditional method. On a traditional basis the VANB increased by 24% from EUR 300 million to EUR 373 million driven mainly by higher volumes at Insurance International and higher average margins. The higher margins are due mainly to an increase in investment margins at Insurance Belgium funded from the risk premium on shares and property. Although these increases in margins are not recognized up front under the market consistent approach, the market consistent VANB increases further to EUR 377 million or 26% higher compared to 2005, because of other adjustments, notably the reduction in the cost of capital. The overall New Business margin remains strong at 3.33%.. Gross written premiums at Non-Life advanced 5% to EUR 5,033 million. This growth reflects higher volumes at International and Belgium, which more than compensated for a slight decline in the Netherlands resulting from the decision not to participate in the price war in medical expenses insurance. All product segments contributed to year-on-year volume growth. Sustained above-market growth rates in Belgium and the successful affinity marketing strategy in the UK pushed up gross written premiums at Property & Casualty by 7%. Gross written premiums at Accident & Health came in 3% higher, benefiting from strong healthcare growth in Belgium and commercial campaigns for health products in Portugal. Non-Life technical results climbed 7% to EUR 573 million, thanks to volume growth and a stable combined ratio of 96.1%. This excellent performance was driven by Accident & Health and Motor in the Netherlands, which more than compensated for lower results at Fire. The Dutch Accident & Health line has an exceptionally strong combined ratio of 82.5%, thanks to selective underwriting and a benign claims environment. For Fortis as a whole, the combined ratio for Property & Casualty increased only slightly from last year’s low and now stands at 98.4%, with better technical results at Motor failing to fully offset the higher claim frequency at Fire. Fortis Corporate Insurance continued its strong underwriting performance. Thanks to these favourable developments, net profit grew 4% to EUR 496 million. The storm Kyrill caused widespread damage across Western Europe in January 2007. Current estimates of the total claims for Fortis’s Non-Life activities in the Netherlands, Belgium and the UK are around EUR 70 million before tax. Fortis Annual Results 2006 | 8 March 2007 |. 21. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. Non-life.

(22) 3.2. Performance per Insurance business (for full details see Financial and Operational Review) 3.2.1. Insurance Belgium Key figures – Insurance Belgium (in EUR million). FY 2006. FY 2005. Net profit Life gross inflow Non-Life gross written premiums Combined ratio. 553 5,474 1,270 99.0%. 488 5,280 1,164 97.1%. Operating leverage FTEs. (7.0% ) 5,182. 5,003. Change. Q4 2006. Q3 2006. Change. 13% 4% 9%. 133 1,813 295 98.3%. 146 1,299 311 100.2%. (9% ) 40% (5% ). 4%. 5,182. 5,129. 1%. Net profit at Fortis Insurance Belgium rose sharply to EUR 553 million, climbing 13% compared with 2005 despite the EUR 83 million result-related commission paid to Fortis Retail Bank, introduced in 2006. This amount was amply offset by higher net capital gains and a lower tax rate (due to the capital gains mix). Fourth-quarter net profit came down 9% on the third quarter, which benefited from a very low tax rate. Total inflow clocked in at EUR 6,744 million in 2006, rising 5% above the previous year’s figure. Inflow at Life went up 4% and at Non-Life 9%. According to the latest market estimates published by the Belgian insurance association Assuralia, Fortis Insurance Belgium’s market share in individual life advanced from 20% in 2005 to 28% in 2006, while its non-life market share grew from 13% to 14%.. Fortis Insurance Belgium was once again voted the best service provider in the 2006 ICMA survey of professional brokers, held in December 2006. This clearly demonstrates that the merger between Fortis AG and FB Insurance and the related integration efforts have not damaged Fortis Insurance Belgium’s competitive position or commercial focus. 3.2.2. Insurance Netherlands Key figures – Insurance Netherlands (in EUR million). FY 2006. FY 2005. Change. Q4 2006. Q3 2006. Change. Net profit Life gross inflow Non-Life gross written premiums Combined ratio. 624 3,437 1,943 90.6%. 534 2,635 1,969 92.2%. 17% 30% (1% ). 150 1,380 372 102.5%. 155 632 397 86.2%. (3% ) * (6% ). Operating leverage FTEs. (0.6% ) 4,210. 4,652. (10% ). 4,210. 4,258. (1% ). Net profit at Fortis Insurance Netherlands increased to EUR 624 million, up 17% compared with the good result in 2005. This solid performance was driven by an excellent combined ratio for Non-Life, a robust performance at Life, tight cost control and lower average taxes, partly offset by lower capital gains. Fortis Annual Results 2006 | 8 March 2007 |. 22. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. Operating costs rose by 9% due to volume growth and expenses related to the integration of Fortis AG and FB Insurance. Volume growth also drives the increase in the number of FTEs from 5,003 to 5,182. The number of FTEs employed by Interparking, which is part of Fortis Real Estate, grew by 76 as a result of acquisitions in Spain and new car parks at German railway stations following a deal with Deutsche Bahn. The number of FTEs employed by the insurance operations went up by 103, in line with hiring targets set to accommodate the business’s ongoing strong growth..

(23) Total fourth-quarter net profit inched down to EUR 150 million, more than doubling compared with the corresponding period in 2005. The improved performance at Life was offset by seasonality factors at NonLife. Total gross inflow Life and Non-Life went up by 17% to EUR 5,380 million and included one exceptional group life contract of EUR 710 million in the fourth quarter. Excluding this contract, total premium income advanced 1%. Gross inflow at Life in the fourth quarter, excluding the exceptional group life contract, was 6% higher than in the previous quarter. Operating costs remained tightly under control, benefiting from the integration of Fortis ASR, which was completed in 2006. Despite wage drift, volume growth and the first-time full-year consolidation of SOS International (specialist in worldwide emergency medical and travel assistance) in the fourth quarter, operating costs declined 1% to EUR 553 million. Excluding the SOS-related expenses, operating costs came down by 3%. The number of FTEs stood at 4,210 at the end of 2006, down 5% on year-end 2005 (4,416), excluding 236 FTEs who are now employed by Group Resources.. Key figures – Insurance International (in EUR million) Net profit Life gross inflow Non-Life gross written premiums Combined ratio Operating leverage FTEs. FY 2006. FY 2005. Change. Q4 2006. Q3 2006. Change. 243 3,214 1,820 100.1%. 203 3,566 1,642 100.1%. 20% (10% ) 11%. 50 1,074 413 102.9%. 66 676 455 97.3%. (24% ) 59% (9% ). 3,714. 3,707. 0%. (4.8% ) 3,714. 3,428. 8%. Fortis Insurance International had another excellent year, with net profit jumping 20% to EUR 243 million (up from EUR 203 million in 2005). The increase in profit was fuelled by Life activities (up 63% to EUR 85 million), driven by the Asian operations. Non-Life net profit climbed 5% thanks to continued effective underwriting and sound risk management. Operating costs rose to EUR 411 million as a result of the further implementation of the strategy and continued investment in growth. Net profit in the fourth quarter came down 24% on the third quarter due to seasonality factors at Non-Life. Significant progress was made with entering new markets in 2006. A three-way joint-venture agreement was signed with Industrial and Development Bank of India (IDBI) and Federal Bank, aimed at establishing a new insurance company to commence operations in 2007. Fortis launched a new life insurance company in Russia in 2006. The company works with a state-of-the-art IT system that is also used by the Chinese joint venture Taiping Life. Its product range consists of term life insurance, endowment insurance, and pension insurance. Fortis acquired two life insurers, in Ukraine and in Germany. The companies will start selling life insurance products under the Fortis brand in 2007. In Germany, the platform will also support the sale of insurance products through the Credit4Me consumer finance concept. The same IT system will be used in Ukraine as the one in use at Taiping Life and in Russia. Finally, in March 2007, Fortis announced it entered into an agreement whereby Fortis will acquire a controlling interest of over 50% in PCI, a listed Hong Kong life insurer. Fortis Annual Results 2006 | 8 March 2007 |. 23. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. 3.2.3. Insurance International.

(24) Please see the Financial and Operational Review, the Analyst Presentation and the Consolidated Quarterly Financial Report for a detailed analysis of the 2006 annual results. These documents are available on our website: www.fortis.com. Fortis is an international financial services provider engaged in banking and insurance. We offer our personal, business and institutional customers a comprehensive package of products and services through our own channels, in collaboration with intermediaries and through other distribution partners. With a market capitalisation of EUR 42.4 billion (28/2/2007), Fortis ranks among the 20 largest financial institutions in Europe. Our sound solvency position, our presence in 50 countries and our dedicated, professional workforce of 60,000 enable us to combine global strength with local flexibility and provide our clients with optimum support. More information is available at www.fortis.com.. Press Contacts: Brussels:. +32 (0)2 565 35 84. Utrecht:. +31 (0)30 226 32 19. +32 (0)2 565 53 78. Utrecht:. +31 (0)30 226 32 20. Investor Relations: Brussels:. Fortis Annual Results 2006 | 8 March 2007 |. 24. WorldReginfo - 56b96614-6a57-4e54-980a-d188af1c4e38. Press conference, Brussels 8 March, 11.00 a.m. CET Webcast at www.fortis.com Listen in: +44 207 365 18 32 (United Kingdom) +32 2 400 3463 (Belgium) +31 20 713 2790 (Netherlands) Investor Day, Brussels 9 March, 10.00 a.m. CET Webcast at www.fortis.com Listen in: +44 207 365 18 43 (United Kingdom) +32 2 400 6875 (Belgium) +31 207 132 936 (Netherlands).

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