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UPDATE 2-Fortis replaces CEO with insurance sector veteran

Published 06/15/2009, 10:43 AM
Updated 06/15/2009, 11:10 AM
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* Belgian insurance chief to become group CEO on July 1

* Karel De Boeck to leave group after seven months as CEO

* Shares down 4.7 percent

(Updates with Fortis confirmation)

BRUSSELS, June 15 (Reuters) - Fortis named the head of its core business, Fortis Insurance Belgium (FIB), as chief executive to lead the Belgian-based financial services group's transformation into an insurer.

Bart De Smet will take control on July 1, succeeding the more banking-minded Karel De Boeck who will leave the company after seven months as CEO, Fortis said in a statement on Monday.

Fortis was carved up by Belgian, Dutch and Luxembourg governments in October after an 11.2 billion euro ($15.5 billion) cash injection failed to halt a plunge in the value of its stock.

"By appointing Bart De Smet, a seasoned executive who has spent his entire career within the insurance industry, we ensure that we have the right management in place to develop our position as an international insurance group," Fortis said.

De Smet, 51, will also temporarily remain head of FIB, which is being renamed AG Insurance on June 22.

De Boeck was appointed CEO on Nov. 5 and confirmed in the post at an investor meeting on Dec. 2.

He has guided Fortis through six months of turbulence, with angry shareholders challenging the carve-up and specifically the planned sale of Fortis assets to French BNP Paribas.

That sale was approved by a stormy investor meeting in April when a shoe and coins were thrown at the chairman.

BNP Paribas has now taken control of Fortis's Belgian banking arm Fortis Bank. The latter also has a 25 percent stake in Fortis Insurance Belgium.

Fortis shares were down 4.7 percent to 2.4800 euros at 1440 GMT, against a 2.6 percent decline of the DJ Stoxx European banking index. (Reporting by Anne Jolis and Philip Blenkinsop; editing by Simon Jessop and Dan Lalor) ($1 = 0.7203 euro)

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