Ethias reorganisation "will not harm customers"
The Belgian insurer is to receive a capital increase of 1.5 billion euros and the group will be reorganised.22 October 2008
Ethias CEO Bernard Thiry has reassured customers at a press conference yesterday, saying they need not worry. The Belgian insurer is to receive a capital increase of 1.5 billion euros and the group will be reorganised.
The Flemish, Walloon and federal governments struck a deal yesterday to help Ethias solve its liquidity problems, putting aside 500 million euros each to complete the Belgian insurer's capital hike. Ethias had fallen short of cash and needed 1.5 billion euros to solve its liquidity problems.
The government also said it would provide guarantees up to 100,000 euros for Ethias' savings products. Ethias is an insurer, but also offers savings accounts.
The group will also take on a new structure. It is said that the board should receive a more professional structure.
As part of the deal, the three governments involved will each have a 25 percent minority in the group which will give them the right to veto certain decisions.
"Best quality of service to our customers"
Last week's news that Ethias needed to find 1.5 billion euros by today caused distress among its customers, but PM Yves Leterme (Flemish Christian Democrat) continuallyu reassured customers that there was no need for panic.
Now the capital increase has been completed and the group will be reorganised, the new CEO, Bernard Thiry, did his best to reassure customers at the press conference.
"There will be a reorganisation in many departments in the enterprise but it will cause no problems for our customers. We will keep doing our best to give the best quality of services to our customers," Thiry said.