Today Maybank signed an agreement with Fortis to develop bankassurance in Malaysia under which Fortis will purchase a 30% equity interest in Maybank's life and non-life insurance businesses. Fortis' investment amounts to approximately RM340 million (approximately US$ 90 million) subject to further adjustments on closing.

The agreement follows the approval by Bank Negara Malaysia in May 2000 for the parties to commence negotiations in relation to the transaction.

The agreement was signed on behalf of Maybank by Managing Director, Datuk Amirsham A Aziz and on behalf of Fortis by its Chief Executive Officer, Mr Anton van Rossum.

During the ceremony, Datuk Amirsham A Aziz explained why Maybank had chosen Fortis as a joint venture partner.

"We were looking for a strategic partner which would help us achieve our objectives of being a leading player in the insurance market as well as a prominent retail financial services group. We envisaged a partner which was not just a leader in bankassurance, but also one which was a successful banking group."

"In our search, Fortis came out as the natural partner. Not only does Fortis have a clear commitment to this market, but they also have the capabilities and systems that would help us realise our vision."

"This joint venture is more than just about insurance. We believe it is a partnership that will benefit not only our insurance business and customers, but also enable us to become a complete and reliable financial planner for all our customers. With the advantages of the Maybank brand which Malaysians have come to trust, as well as our vast network throughout the country, I have no doubt that we will be able to chart new horizons in the future."

Mr van Rossum put this joint venture into the context of Fortis' strategy:

"Fortis wants to expand its activities in Asia thereby participating in the growth potential we foresee in the future, particularly in the financial services sector. In Europe, Fortis has been very successful in integrating insurance and investment activities into its retail banking operations. Our objective is to implement this knowledge and experience in partnership with major retail banks."

"We are delighted that our first bankassurance venture in Asia is with Maybank. Maybank has all the ingredients we look for in a bankassurance partner - a powerful retail franchise, management commitment to the concept of integrating insurance into retail banking, and competent and motivated people with a strong focus on information technology."

Maybank has a rapidly growing insurance business - both life and non-life. Through this partnership Maybank obtains leverage across all their retail activities from Fortis know-how.

"Fortis is very enthusiastic about this partnership and we will give it our full support," added Mr van Rossum.

Following this signing ceremony, it is the intention of Maybank to group all its insurance companies under the holding company Mayban Assurance Berhad, which is to be renamed Mayban Fortis Holdings Berhad.

Maybank
Maybank is Malaysia's largest financial services group with assets of over RM127 billion (US$33 billion) and is one of the top five banks in ASEAN. It was incorporated in Malaysia on 31 May 1960 and listed on Kuala Lumpur Stock Exchange on 17 February 1962.

Maybank offers an array of financial services ranging from retail banking, corporate banking, merchant banking, offshore banking, leasing and hire-purchase to insurance, asset management, stockbroking, fund management, discount house business and venture capital. Maybank has the largest branch network in Malaysia as well as operations in key financial centres worldwide, with a strong regional presence in Asia.

Maybank is a pioneer and leading practitioner of bankassurance in Malaysia and South East Asia. Mayban Life Assurance Berhad and Mayban General Assurance Berhad are significant players in the insurance business.

Mayban Life Assurance Berhad began in 1993 and within five years it had joined the ranks of top players in the industry in terms of new business premiums.

In 1997, Mayban Life Assurance Berhad was accorded the ISO9002 certification by Standards and Industrial Research Institute of Malaysia (SIRIM). In 1999, it was awarded the Life Insurance Company of the Year Award by the Asia Insurance Industry. This was in recognition of this innovative and dynamic distribution and service through bankassurance.

Mayban Assurance Berhad's recent completion of a merger with UMBC Insurans Berhad has moved the new entity, Mayban General Assurance Berhad into the top 5 in the general insurance industry.

Today with about four hundred retail outlets and five hundred dedicated Financial Executives, Maybank continues to remain committed and ready to serve the needs of its customers.

Fortis
Fortis is an international group, a leader in the fields of insurance, banking, investment and bankassurance. The group employs more than 75,000 people and offers a broad range of financial services through various distribution channels.

In its domestic market, the Benelux countries, Fortis is one of the largest providers of integrated financial services for private customers, businesses, institutional investors and the public sector.

In other European countries, the United States and Asia Fortis concentrates on selected market segments. The focus is on those markets and market segments in which it can play a leading part and achieve profitable growth. At year-end 1999 Fortis had total assets of EUR 406 billion and its result for the year before taxation amounted to EUR 3.4 billion.

As part of society, Fortis feels commitment towards society as a whole. The strength of the group is that it combines stable companies that have roots in the local communities. These companies are close to their customers and operate in the markets that they understand. Together they make up a strong group with an extensive range of products, great financial strength, a wide spread of risks and substantial expertise. This is how Fortis combines local know-how and experience with global strength.

Fortis is listed on the stock exchanges of Amsterdam, Brussels, London and Luxembourg and has a sponsored American Deposit Receipts (ADR) programme in the United States.