Dexia reviews insurance, fund mgt operations

BRUSSELS May 28 (Reuters) - Belgian-French financial services group Dexia (DEXI.BR) is studying the future of its insurance and fund management arms as part of a general review of the entire group, the company said on Thursday.

Belgian business daily De Standaard reported this could lead to the sale of parts of these businesses but a Dexia spokeswoman said the study had not been completed and could not say when the results would be made public.

Dexia, which received a 6.4 billion euro ($8.9 billion) bailout by France, Belgium, Luxembourg and key shareholders in September, has already carried out a series of restructuring measures and set a 600 million euro cost saving target.

It has discontinued its public financing activities in a number of countries to focus on core operations in France, Belgium, Luxembourg, Italy and Iberia and is in the process of selling U.S. monoline insurer FSA.

De Standaard said Dexia Chief Executive Pierre Mariani had not ruled out a partial sale of insurance, adding a sale of the damage insurance business was possible, although life insurance was likely to be retained.

Insurance investment portfolios incurred impairments and losses of 201 million euros in the first quarter, while Dexia group achieved a net profit of 251 million euros.

In fund management, a number of smaller offices have already closed. De Standaard said a restructuring was likely to affect the large operations in Brussels and Paris. (Reporting by Philip Blenkinsop; Editing by David Holmes)