UPDATE 1-KBC says EU ruling on state aid due Wednesday

* EU ruling on KBC aid, strategic plan due 1100 GMT Weds

* KBC to give details in afternoon

* Seen allowed to continue as bancassurer in home markets

(Adds details, background)

BRUSSELS, Nov 18 (Reuters) - A European Commission ruling on KBC's (KBC.BR) strategic plan following the Belgian banking and insurance group's receipt of state aid is due on Wednesday, the firm said.

KBC, into which the Belgian and Flemish regional governments have pumped 7 billion euros ($10.4 billion), is expected to be able to continue operating as a bancassurer in Belgium and its other home market of emerging Europe, where it was the fifth largest bank by assets in 2008.

Dutch bancassurer ING (ING.AS) last month said it would spin off its insurance activities to ease EU competition concerns after its bailout by the Dutch government, marking the lender's return to its retail savings bank roots. [ID:nLQ54845]

KBC's overhaul, agreed with the EU's executive Commission, will be less drastic than that of ING, a source told Reuters last week, saying the group would need to shrink its balance sheet by 20 to 25 percent. [ID:nLD129542]

It will likely be asked to sell its private banking unit KBL European Private Bankers, its domestic insurance unit Fidea and Belgian retail bank Centea.

KBC's operations in the Czech Republic and Hungary may also be partly listed.

KBC gave no new details of its restructuring plan when it reported third-quarter results last Friday, posting a greater improvement than expected in net profit. [ID:nLD374313]

Shares in KBC will be suspended from the opening of trade and resume some time after publication of the ruling, which is due at 1100 GMT.

(Reporting by Philip Blenkinsop; editing by John Stonestreet) ($1=.6712 Euro)