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Fortis Insurance International, a unit of the European bank, is a shareholder in Muang Thai Life, with a 24.9-per-cent equity.

Fortis Bank yesterday received an ¤11.2-billion (Bt548 billion) rescue package from the governments of Belgium, the Netherlands and Luxembourg after it was hit by fallout from the US financial crisis.

"Fortis is not our parent company. We're an independent insurer. We don't have any investment in Fortis either, and Muang Thai Life is wholly managed by the Lamsam family and affiliated with Kasikornbank (KBank)," said Muang Thai Life president Sara Lamsam.

The Lamsam family and KBank are major shareholders in Muang Thai Life.

Earlier, policyholders of American International Assurance (AIA) in Thailand and other Asian countries were panicky, due to the near-collapse of parent firm the American International Group.

Sara said fund-raising was not the top priority in the equity partnership with Fortis. Muang Thai Life has been more interested in new-product know-how from Fortis, with emphasis on universal insurance and unit-linked financial products.

Belgian-based Fortis Insurance International owns 24.99 per cent stake of Muang Thai Life Assurance and 10 per cent of affiliated Muang Thai Insurance.

Muang Thai Life's assets have been valued at Bt58.84 billion, with investments totalling Bt54.83 billion as of yesterday.

The firm's capital reserve is Bt6.2 billion.

Due to tight government regulations, insurance firms are required to invest conservatively, with most investments going to government and state-enterprise bonds rated "BBB+" or higher.

Sara said Fortis's core businesses were banking and insurance, each of which accounted for half of the group's total income.

The Belgian government will buy 49 per cent of Fortis' Belgian banking unit for ¤4.7 billion, while the Dutch government will pay ¤4 billion for a similar stake in that country's banking business.

The Luxembourg government will

also provide a ¤2.5-billion loan, which

can be converted into a 49-per-cent

stake in Fortis' banking division in that country.