Primary reporting format – business segments

On 12 October 2006 Fortis announced organisational changes to support the evolution of its growth strategy. This organisation is operational since 1 January 2007.

The primary format for reporting segment information is based on business segments. Fortis’ reportable business segments represent groups of assets and operations engaged in providing financial products or services, which are subject to differing risks and returns.

Fortis' core activities are Banking and Insurance. As such, Fortis is organised on a worldwide basis into three businesses, further subdivided into business segments:

Retail Banking

• Retail Banking Network
• Retail Banking Asset Management

Merchant & Private Banking

• Merchant & Private Banking Clients
• Merchant & Private Banking Skills

Insurance

• Insurance Belgium – Life
• Insurance Belgium – Non-life
• Insurance Netherlands – Life
• Insurance Netherlands – Non-life
• Insurance International – Life
• Insurance International – Non-life

Activities not related to Banking or Insurance and elimination differences are reported separately from the Banking and Insurance activities.

Transactions or transfers between the business segments are entered into under normal commercial terms and conditions that would be available to unrelated third parties.

On 5 November 2007 Fortis announced that it would reorganise its management structure as of 1 January 2008. The adequate management structure will not only facilitate the successful integration of the acquired businesses of ABN AMRO, but will also support the development of Fortis as a whole. Fortis will start to report according to the new organisational structure as of the first quarter of 2008.

Secondary reporting format – geographical segments

A geographical segment is engaged in providing products or services within a particular economic environment subject to risks and returns that are different from those of segments operating in other economic environments.

Fortis’ geographical segments for reporting purposes are as follows:

• Benelux (Belgium, the Netherlands, Luxembourg)
• Other European Countries
• North America
• Asia
• Other.