485BPOS 1 e7794.txt RIA REGISTRATION STATEMENT ON FORM N-4 Registration No. 333-59404 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------------------------------------- FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 |_| Pre-Effective Amendment No.___ |_| Post-Effective Amendment No. 7 |X| --- AND/OR REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 |_| Amendment No.___ |_| (Check appropriate box or boxes) -------------------------------- AXA EQUITABLE LIFE INSURANCE COMPANY (Exact Name of Registrant) -------------------------- AXA EQUITABLE LIFE INSURANCE COMPANY (Name of Depositor) 1290 Avenue of the Americas, New York, New York 10104 (Address of Depositor's Principal Executive Offices) Depositor's Telephone Number, including Area Code: (212) 554-1234 ------------------------- DODIE KENT VICE PRESIDENT AND COUNSEL AXA Equitable Life Insurance Company 1290 Avenue of the Americas, New York, New York 10104 (Names and Addresses of Agents for Service) ------------------------------------------- Please send copies of all communications to: CHRISTOPHER E. PALMER, ESQ Goodwin Procter LLP 901 New York Avenue, Northwest Washington, D.C. 20001 ---------------------------------------- Approximate Date of Proposed Public Offering: Continuous. It is proposed that this filing will become effective (check appropriate box): [_] Immediately upon filing pursuant to paragraph (b) of Rule 485. [X] On May 1, 2006 pursuant to paragraph (b) of Rule 485. [_] 60 days after filing pursuant to paragraph (a)(1) of Rule 485. [_] On (date) pursuant to paragraph (a)(1) of Rule 485. If appropriate, check the following box: [_] This post-effective amendment designates a new effective date for previously filed post-effective amendment. Title of Securities Being Registered: Units of interest in Separate Account under variable annuity contracts. Retirement Investment Account(R) PROSPECTUS DATED MAY 1, 2006 Please read this prospectus and keep it for future reference. It contains important information that you should know before purchasing, or taking any other action under a policy. Also, you should read the prospectuses for AXA Premier VIP Trust and EQ Advisors Trust which contain important information about their portfolios. -------------------------------------------------------------------------------- ABOUT THE RETIREMENT INVESTMENT ACCOUNT(R) The Retirement Investment Account(R) ("RIA") is an investment program that allows employer plan assets to accumulate on a tax-deferred basis. Thirty-two investment funds ("Funds") and a guaranteed interest option are available under RIA. The Funds and guaranteed interest option comprise the "investment options" covered by this prospectus. RIA is offered under a group annuity contract issued by AXA Equitable Life Insurance Company. This contract is no longer being sold. This prospectus is used with current contract owners only. You should note that your contract features and charges, and your investment options, may vary depending on your state and/or the date on which you purchased your contract. For more information about the particular features, charges and options applicable to you, please contact your financial professional and/or refer to copies of the documents you received when you enrolled. -------------------------------------------------------------------------------- Funds -------------------------------------------------------------------------------- Pooled separate accounts -------------------------------------------------------------------------------- o Alliance Balanced -- Separate o Alliance Common Stock -- Separate Account No. 10 Account No. 4 o Alliance Bond -- Separate o Alliance Mid Cap Growth Fund -- Account No. 13 Separate Account No. 3 -------------------------------------------------------------------------------- Separate Account No. 66 -------------------------------------------------------------------------------- o AXA Premier VIP High Yield o EQ/Equity 500 Index o AXA Premier VIP Technology o EQ/Evergreen Omega o EQ/Alliance Growth and Income o EQ/FI Mid Cap o EQ/Alliance Intermediate Government o EQ/FI Mid Cap Value Securities o EQ/Janus Large Cap Growth o EQ/Alliance International o EQ/JPMorgan Value Opportunities o EQ/Alliance Large Cap Growth o EQ/Lazard Small Cap Value o EQ/Alliance Quality Bond o EQ/Marsico Focus o EQ/Alliance Small Cap Growth o EQ/Mercury Basic Value Equity o EQ/Bernstein Diversified Value o EQ/Mercury International Value o EQ/Calvert Socially Responsible o EQ/MFS Emerging Growth Companies o EQ/Capital Guardian Growth o EQ/MFS Investors Trust o EQ/Capital Guardian International o EQ/Money Market o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Capital Guardian U.S. Equity Equity -------------------------------------------------------------------------------- The Alliance Bond, Alliance Balanced, Alliance Common Stock, and Alliance Mid Cap Growth Funds (the "Pooled Separate Accounts") are managed by AXA Equitable. The Alliance Bond Fund is available only to employer plans that signed an agreement to allocate monies in the Alliance Bond Fund before June 1, 1994. Separate Account No. 66 Funds invest in shares of a corresponding portfolio ("portfolio") of AXA Premier VIP Trust and EQ Advisors Trust (the "Trusts"). In each case, the Funds and the corresponding portfolios have the same name. You should read the prospectuses for each Trust and keep them for future reference. GUARANTEED INTEREST OPTION. The guaranteed interest option credits interest daily and we guarantee principal. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The Statement of Additional Information ("SAI") dated May 1, 2006, is a part of the registration statement. The SAI is available free of charge. You may request one by writing to our RIA service office or calling 1-800-967-4560. The SAI has been incorporated by reference into this prospectus. This prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this prospectus. The SAI is available free of charge. You may request one by writing to our processing office at AXA Equitable, RIA Service Office, P.O. Box 8095, Boston, MA 02266-8095 or calling 1-800-967-4560. The SEC has not approved or disapproved these securities or determined if this prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The securities are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. X01284 Contents of this prospectus -------------------------------------------------------------------------------- RETIREMENT INVESTMENT ACCOUNT(R) -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 5 How to reach us 6 RIA at a glance - key features 7 -------------------------------------------------------------------------------- FEE TABLE 9 -------------------------------------------------------------------------------- Examples 11 Condensed financial information 14 -------------------------------------------------------------------------------- 1. RIA FEATURES AND BENEFITS 15 -------------------------------------------------------------------------------- Investment options 15 The Alliance Bond Fund 15 The Alliance Balanced Fund 15 The Alliance Common Stock Fund 16 The Alliance Mid Cap Growth Fund 16 Investment manager of the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds 17 Portfolio holdings policy for the Pooled Separate Accounts 17 Funds investing in the Trusts 17 Risks of investing in the Funds 20 Risk factors -- Alliance Bond, Alliance Common Stock, Alliance Mid Cap Growth and Alliance Balanced Funds 20 Change of investment objectives 21 Guaranteed interest option 21 -------------------------------------------------------------------------------- 2. HOW WE VALUE YOUR ACCOUNT VALUE 22 -------------------------------------------------------------------------------- How we determine the unit value 22 How we value the assets of the Funds 22 -------------------------------------------------------------------------------- 3. TRANSFERS 24 -------------------------------------------------------------------------------- Transfers among investment options 24 Special rules applicable to the Alliance Bond Fund 24 Disruptive transfer activity 24 -------------------------------------------------------------------------------- 4. ACCESS TO YOUR ACCOUNT VALUE 26 -------------------------------------------------------------------------------- Participant loans 26 Choosing benefit payment options 26 ---------------------- When we use the words "we," "us" and "our," we mean AXA Equitable. When we address the reader of this prospectus with words such as "you" and "your," we generally mean the employer or plan sponsor of the plans who use RIA as an investmentvehicle, unless otherwise explained. Further, the terms and conditions of the employer's plan govern the aspects of RIA available to plan participants. Accordingly, participants also should carefully consider the features of their employer's plan, which may be different from the features of RIA described in this prospectus. 2 Contents of this prospectus -------------------------------------------------------------------------------- 5. RIA 27 -------------------------------------------------------------------------------- Summary of plan choices of RIA 27 How to make contributions 27 Selecting investment options 27 Allocating program contributions 28 -------------------------------------------------------------------------------- 6. DISTRIBUTIONS 29 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 7. OPTIONAL PARTICIPANT RECORDKEEPING SERVICES 31 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 8. CHARGES AND EXPENSES 32 -------------------------------------------------------------------------------- Charges reflected in the unit values 32 Indirect expenses borne by the Funds 32 Charges which reduce the number of units 32 Participant recordkeeping services charge 33 Other billing arrangements 33 Individual annuity charges 33 General information on fees and charges 33 -------------------------------------------------------------------------------- 9. TAX INFORMATION 34 -------------------------------------------------------------------------------- Buying a contract to fund a retirement arrangement 34 Impact of taxes to AXA Equitable 35 Certain rules applicable to plans designed to comply with Section 404(c) of ERISA 35 -------------------------------------------------------------------------------- 10. MORE INFORMATION 36 -------------------------------------------------------------------------------- About changes or terminations 36 IRS disqualification 36 About the separate accounts 36 About the Trusts 36 About the general account 36 When we pay proceeds 37 When transaction requests are effective 37 Voting rights 37 About legal proceedings 37 Financial Statements 37 About the trustee 37 Reports we provide and available information 37 Acceptance and responsibilities 38 About registered units 38 Assignment and creditors' claims 38 Distribution of the contracts 38 Commissions and service fees we pay 39 -------------------------------------------------------------------------------- APPENDIX: CONDENSED FINANCIAL INFORMATION I-1 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS -------------------------------------------------------------------------------- Contents of this prospectus 3 Index of key words and phrases -------------------------------------------------------------------------------- Below is an index of key words and phrases used in this prospectus. The index will refer you to the page where particular terms are defined or explained. This index should help you locate more information on the terms used in this prospectus. Page AXA Equitable 5 business day 22 benefit payment options 26 Code 7 contracts 27 contributions 27 CWC 32 current rate 21 disruptive transfer activity 24 DOL 27 ERISA 7 exclusive funding employer plan 27 Fair valuation 23 financial professional 38 Funds cover guaranteed interest option cover IRS 32 investment options cover market timing 24 Master Retirement Trust 27 minimum rate 21 optional participant recordkeeping service 31 PRS 7 partial funding employer plan 27 participant-directed plans 24 portfolios cover QDRO 38 RIA cover SAI cover separate accounts 36 Trusts cover, 36 trustee-directed plans 24 unit 22 unit value 22 4 Index of key words and phrases Who is AXA Equitable? -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA. AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings Inc. and AXA Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $643.4 billion in assets as of December 31, 2005. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. Who is AXA Equitable? 5 HOW TO REACH US You may communicate with our processing office as listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically may be unavailable or delayed (for example our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing). In addition, the level and type of service available may be restricted based on criteria established by us. We reserve the right to limit access to these services if we determine that you are engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transfers" later in this prospectus). You can reach us to obtain: o Partiipation agreements, or enrollment or other forms used in RIA o Unit values and other values under your plan o Any other information or materials that we provide in connection with RIA -------------------------------------------------------------------------------- BY PHONE: -------------------------------------------------------------------------------- 1-800-967-4560 (service consultants are available weekdays 9 a.m. to 5 p.m. Eastern time) -------------------------------------------------------------------------------- BY REGULAR MAIL (CORRESPONDENCE AND CONTRIBUTION CHECKS): -------------------------------------------------------------------------------- AXA Equitable P.O. Box 8095 Boston, MA 02266-8095 -------------------------------------------------------------------------------- BY REGISTERED, CERTIFIED, OR OVERNIGHT DELIVERY (CONTRI- BUTION CHECKS ONLY): -------------------------------------------------------------------------------- AXA Equitable 66 Brooks Drive Suite 8095 Braintree, MA 02184 No person is authorized by AXA Equitable to give any information or make any representations other than those contained in this prospectus and the SAI, or in other printed or written material issued by AXA Equitable. You should not rely on any other information or representation. 6 Who is AXA Equitable? RIA at a glance -- key features --------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------ Employer RIA is an investment program designed for employer plans that qualify for plan tax-favored treatment under Section 401(a) of the Internal Revenue Code of arrangements 1986, as amended ("Code"). Eligible employer plans include defined benefit plans, that defined contribution plans or profit-sharing plans, including 401(k) plans. use the These employer plans generally also must meet the requirements of the Employee RIA contract Retirement Income Security Act of 1974, as amended ("ERISA"). Employer plan arrangements chose RIA: o As the exclusive funding vehicle for an employer plan. If you chose this option, the annual amount of plan contributions must be at least $10,000. o As a partial investment funding vehicle for an employer plan. Under this option, the aggregate amount of contributions in the initial participation year were at least $50,000, and the annual aggregate amount of contributions thereafter must be at least $25,000. The guaranteed interest option is not available. Also, a partial funding agreement was completed. ------------------------------------------------------------------------------------------------------------------------ RIA features o 33 investment options. The maximum number of active investment options that may be selected at any time is 25. o Benefit distribution payments. o Optional Participant Recordkeeping Services ("PRS"), which includes participant-level recordkeeping and making benefit payments. o Available for trustee-directed or participant-directed plans. ------------------------------------------------------------------------------------------------- A participant-directed employer plan is an employer plan that permits investment direction by plan participants for contribution allocations or transfers among investment options. A trustee-directed employer plan, is an employer plan that permits those same types of investment decisions only by the employer, a trustee or any named fiduciary or an authorized delegate of the plan. ------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------ Contributions o Can be allocated to any one investment option or divided among them. o May be made by check or wire transfer. o Are credited on the day of receipt if accompanied by properly completed forms. ------------------------------------------------------------------------------------------------------------------------ Transfers among o Generally, amounts may be transferred among the investment options. investment options o There is no charge for transfers and no tax liability. o Transfers to the Alliance Bond Fund and from the guaranteed interest option may be subject to limitations. ------------------------------------------------------------------------------------------------------------------------ Professional The Funds are managed by professional investment advisers. investment management ------------------------------------------------------------------------------------------------------------------------ Guaranteed The guaranteed interest option pays interest at guaranteed rates and provides options guarantees of principal. ------------------------------------------------------------------------------------------------------------------------ Tax considerations o On earnings No tax until you make withdrawals under the plan. o On transfers No tax on internal transfers among the investment options. ------------------------------------------------------------------------------------------------- Because you are enrolling in an annuity contract that funds a qualified employer sponsored retirement arrangement, you should be aware that such annuities do not provide tax deferral benefits beyond those already provided by the Code. Before purchasing one of these annuities, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities with any other investment that you may use in connection with your retirement plan or arrangement. (For more information, see "Tax information" later in this prospectus.) ------------------------------------------------------------------------------------------------------------------------
RIA at a glance -- key features 7
------------------------------------------------------------------------------------------------------------------------ Charges and expenses o Ongoing operations fee assessed against assets invested in investment options including any outstanding loan balance. o Investment management and financial accounting fees and other expenses charged on a Fund-by-Fund basis, as applicable. o No sales charges deducted from contributions, but contingent withdrawal charges may apply for non-benefit distributions. o Charges of the Trusts' portfolios for management fees and other expenses, and 12b-1 fees. o Administrative fee if you purchase an annuity payout option. o Participant recordkeeping (optional) charge per participant annual fee of $25.00. o Loan fee of 1% of loan principal amount at the time the plan loan is made. o Administrative charge for certain Funds of Separate Account No. 66. o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. This charge is generally deducted from the amount applied to an annuity payout option. ------------------------------------------------------------------------------------------------------------------------ Benefit o Lump sum. payment options o Installments on a time certain or dollar certain basis. o Variety of fixed annuity benefit payout options as available under an employer's plan. ------------------------------------------------------------------------------------------------------------------------ Additional o Participant loans (if elected by your employer; some restrictions apply). features o Quarterly reports showing: o transactions in the investment options during the quarter for the employer plan; o the number of units in the Funds credited to the employer plan; and o the unit values and/or the balances in all of the investment options as of the end of the quarter. o Automatic confirmation notice to employer/trustee following the processing of an investment option transfer. o Annual and semiannual report of the Funds. ------------------------------------------------------------------------------------------------------------------------
THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE CONTRACT. IN SOME CASES RESTRICTIONS OR EXCEPTIONS APPLY. ALSO, ALL FEATURES OF THE CONTRACT ARE NOT NECESSARILY AVAILABLE IN YOUR STATE OR AT CERTAIN AGES. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. Please feel free to speak with your financial professional, or call us, if you have any questions. If for any reason you are not satisfied with your contract, you may return it to us for a refund within a certain number of days. OTHER CONTRACTS We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, fees and/or charges that are different from those in the contracts offered by this prospectus. Not every contract is offered through the same distributor. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about any of the AXA Equitable annuity contracts. 8 RIA at a glance -- key features Fee table -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when enrolling in, owning, and surrendering the RIA contract. The tables reflect charges that affect plan balances participating in the Funds through the group annuity contract, as well as charges you will bear directly under your contract. The table also shows charges and expenses of the portfolios of each Trust that you will bear indirectly. Each of the charges and expenses is more fully described in "Charges and expenses" later in this prospectus. The first table describes fees and expenses that you will pay at the time that you surrender the contract, make certain withdrawals, purchase an annuity payout option or take a loan from the contract. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply. We deduct no sales charge at the time you make a contribution, and there are no transfer or exchange fees when you transfer assets among the investment options under the contract. Charges for certain features shown in the fee table are mutually exclusive.
------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value at the time you request certain transactions: ------------------------------------------------------------------------------------------------------------------------ Maximum contingent withdrawal charge (as a percentage of Fund assets)(1) 6% Administrative fee if you purchase an annuity payout option $175 Loan fee (as a percentage of amount withdrawn as loan principal at the time the 1% loan is made) The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including underlying Trust portfolio fees and expenses.
------------------------------------------------------------------------------------------------------------------------ Charges we deduct from the Funds expressed as an annual percentage of daily net assets: ------------------------------------------------------------------------------------------------------------------------ Maximum annual ongoing operations fee (as an annual percentage of daily net 1.25% Fund assets)(2) Administrative charge (applies only to certain Funds(3) in Separate Account No. 66)(4) 0.05% Investment management and accounting fees (applies only to the Pooled Separate 0.50% Accounts: Alliance Bond Fund, Alliance Balanced Fund, Alliance Common Stock Fund and Alliance Mid Cap Growth Fund.)(4)
------------------------------------------------------------------------------------------------------------------------ Charges we deduct at the end of each month ------------------------------------------------------------------------------------------------------------------------ Annual Optional Participant Recordkeeping Services Fee(5) $25 per plan participant ------------------------------------------------------------------------------------------------------------------------
A proportionate share of all fees and expenses paid by a portfolio that corresponds to any variable investment option of the Trusts to which plan balances are allocated also applies. The table below shows the lowest and highest total operating expenses (as of December 31, 2005) charged by any of the portfolios. These fees and expenses are reflected in the portfolio's net asset value each day. Therefore, they reduce the investment return of the portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concern- ing each portfolio's fees and expenses is contained in the Trust prospectus for the portfolio. ------------------------------------------------------------------------------------------------------------------------ Portfolio operating expenses expressed as an annual percentage of average daily net assets ------------------------------------------------------------------------------------------------------------------------ Total Annual Portfolio Operating Expenses for 2005 (expenses that are deducted Lowest Highest from portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ ------- other expenses) 0.38% 1.88%
Fee table 9 This table shows the fees and expenses for 2005 as an annual percentage of each Portfolio's daily average net assets.
----------------------------------------------------------------------------------------------------------- | Trust Related Expenses Separate | Account | Annual | Expense | Administra- | tive | Management Other ----------------------------------------------------------------------------------------------------------- Portfolio Name Charge (3)(4) | Fees(6) 12b-1 Fees(7) Expenses(8) AXA PREMIER VIP TRUST: | ----------------------------------------------------------------------------------------------------------- AXA Premier VIP High Yield 0.05% 0.58% 0.00% 0.18 AXA Premier VIP Technology | 1.20% 0.25% 0.22 ----------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: | ----------------------------------------------------------------------------------------------------------- EQ/Alliance Growth and Income 0.05% | 0.56% 0.00% 0.13% EQ/Alliance Intermediate Government | Securities 0.05% | 0.50% 0.00% 0.14% EQ/Alliance International 0.05% | 0.72% 0.00% 0.21% EQ/Alliance Large Cap Growth | 0.90% 0.25% 0.13% EQ/Alliance Quality Bond 0.05% | 0.50% 0.00% 0.13% EQ/Alliance Small Cap Growth 0.05% | 0.75% 0.00% 0.13% EQ/Bernstein Diversified Value | 0.61% 0.25% 0.13% EQ/Calvert Socially Responsible | 0.65% 0.25% 0.27% EQ/Capital Guardian Growth | 0.65% 0.25% 0.17% EQ/Capital Guardian International | 0.85% 0.25% 0.23% EQ/Capital Guardian Research | 0.65% 0.25% 0.13% EQ/Capital Guardian U.S. Equity | 0.65% 0.25% 0.13% EQ/Equity 500 Index 0.05% | 0.25% 0.00% 0.13% EQ/Evergreen Omega | 0.65% 0.25% 0.18% EQ/FI Mid Cap | 0.69% 0.25% 0.14% EQ/FI Mid Cap Value | 0.73% 0.25% 0.14% EQ/Janus Large Cap Growth | 0.90% 0.25% 0.15% EQ/JPMorgan Value Opportunities | 0.60% 0.25% 0.15% EQ/Lazard Small Cap Value | 0.73% 0.25% 0.14% EQ/Marsico Focus | 0.87% 0.25% 0.13% EQ/Mercury Basic Value Equity | 0.57% 0.25% 0.13% EQ/Mercury International Value | 0.85% 0.25% 0.23% EQ/MFS Emerging Growth Companies | 0.65% 0.25% 0.14% EQ/MFS Investors Trust | 0.60% 0.25% 0.18% EQ/Money Market 0.05% | 0.34% 0.00% 0.13% EQ/Van Kampen Emerging Markets Equity | 1.15% 0.25% 0.48% ----------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------- Trust Related Expenses Total Annual Fee Waivers Net Total Expenses and/or Annual Before Expense Expenses Expense Reimburse- After Expense Portfolio Name Limitation ments(9) Limitations AXA PREMIER VIP TRUST: ---------------------------------------------------------------------------------------------------- AXA Premier VIP High Yield 0.76% -- 0.76% AXA Premier VIP Technology 1.67% 0.00% 1.67% ---------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: ---------------------------------------------------------------------------------------------------- EQ/Alliance Growth and Income 0.69% -- 0.69% EQ/Alliance Intermediate Government Securities 0.64% -- 0.64% EQ/Alliance International 0.93% (0.08)% 0.85% EQ/Alliance Large Cap Growth 1.28% (0.23)% 1.05% EQ/Alliance Quality Bond 0.63% -- 0.63% EQ/Alliance Small Cap Growth 0.88% -- 0.88% EQ/Bernstein Diversified Value 0.99% (0.04)% 0.95% EQ/Calvert Socially Responsible 1.17% (0.12)% 1.05% EQ/Capital Guardian Growth 1.07% (0.12)% 0.95% EQ/Capital Guardian International 1.33% (0.13)% 1.20% EQ/Capital Guardian Research 1.03% (0.08)% 0.95% EQ/Capital Guardian U.S. Equity 1.03% (0.08)% 0.95% EQ/Equity 500 Index 0.38% -- 0.38% EQ/Evergreen Omega 1.08% 0.00% 1.08% EQ/FI Mid Cap 1.08% (0.08)% 1.00% EQ/FI Mid Cap Value 1.12% (0.02)% 1.10% EQ/Janus Large Cap Growth 1.30% (0.15)% 1.15% EQ/JPMorgan Value Opportunities 1.00% (0.05)% 0.95% EQ/Lazard Small Cap Value 1.12% (0.02)% 1.10% EQ/Marsico Focus 1.25% (0.10)% 1.15% EQ/Mercury Basic Value Equity 0.95% 0.00% 0.95% EQ/Mercury International Value 1.33% (0.08)% 1.25% EQ/MFS Emerging Growth Companies 1.04% -- 1.04% EQ/MFS Investors Trust 1.03% (0.08)% 0.95% EQ/Money Market 0.47% -- 0.47% EQ/Van Kampen Emerging Markets Equity 1.88% (0.08)% 1.80% ----------------------------------------------------------------------------------------------------
Notes: (1) The contingent withdrawal charge is waived in certain circumstances. The charge reduces to 2% of the amount withdrawn in the ninth partici pation year and cannot be imposed after the ninth anniversary of a plan's participation in RIA. (2) The annual ongoing operations fee is deducted monthly and applied on a decremental scale, declining to 0.50% on the account value over $1,000,000, except for plans that adopted RIA before February 9, 1986. (3) The Funds that have an Administrative charge are: AXA Premier VIP High Yield, EQ/Alliance Growth and Income, EQ/Alliance Intermediate Government Securities, EQ/Alliance International, EQ/Alliance Quality Bond, EQ/Alliance Small Cap Growth, EQ/Equity 500 Index and EQ/Money Market. (4) The Fund annual expenses and the Trusts' annual expenses (if applicable) are reflected in the unit value. (5) We deduct this fee on a monthly basis at the rate of $2.08 per participant. (6) The management fee for each portfolio cannot be increased without a vote of each portfolio's shareholders. See footnote (9) for any expense limitation agreement information. (7) The Class IB/B shares of each Trust are subject to fees imposed under a distribution plan adopted by each Trust pursuant to Rule 12b-1 under the Investment Company Act of 1940. For the portfolios of the AXA Premier VIP Trust and the EQ Advisors Trust, the 12b-1 fee will not be increased for the life of the contracts. A "--" indicates that there is no Rule 12b-1 Plan in place for the portfolio shown. (8) The amount shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnote (9) for any expense limi tation agreement information. 10 Fee table (9) The amounts shown reflect any contractual fee waivers and/or expense reimbursements that apply to each portfolio that are in place through at least April 2007. A"--" indicates that there is no expense limitation in effect, and "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the manager of the AXA Premier VIP Trust and the EQ Advisors Trust, has entered into Expense Limitation Agreements with respect to certain portfolios, which are effective through April 30, 2007. Under these Agreements, AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain portfolios, if necessary, in an amount that limits such portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures and extraordinary expenses) to not more than specified amounts. Each portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreement provided that the portfolio's current annual operating expenses do not exceed the operating expense limit determined for such portfolio. See the prospectuses for each applicable underlying trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce portfolio expenses, the net expenses would be as shown in the table below: --------------------------------------------------- Portfolio Name --------------------------------------------------- AXA Premier VIP Technology 1.61% --------------------------------------------------- EQ/Alliance Growth and Income 0.66% --------------------------------------------------- EQ/Alliance International 0.84% --------------------------------------------------- EQ/Alliance Large Cap Growth 1.02% --------------------------------------------------- EQ/Alliance Small Cap Growth 0.84% --------------------------------------------------- EQ/Bernstein Diversified Value 0.88% --------------------------------------------------- EQ/Calvert Socially Responsible 1.03% --------------------------------------------------- EQ/Capital Guardian Growth 0.94% --------------------------------------------------- EQ/Capital Guardian International 1.18% --------------------------------------------------- EQ/Capital Guardian Research 0.94% --------------------------------------------------- EQ/Capital Guardian U.S. Equity 0.94% --------------------------------------------------- EQ/Evergreen Omega 0.88% --------------------------------------------------- EQ/FI Mid Cap 0.95% --------------------------------------------------- EQ/FI Mid Cap Value 1.08% --------------------------------------------------- EQ/Janus Large Cap Growth 1.14% --------------------------------------------------- EQ/Lazard Small Cap Value 1.01% --------------------------------------------------- EQ/Marsico Focus 1.14% --------------------------------------------------- EQ/Mercury Basic Value Equity 0.93% --------------------------------------------------- EQ/MFS Emerging Growth Companies 1.01% --------------------------------------------------- EQ/MFS Investors Trust 0.94% --------------------------------------------------- EQ/Van Kampen Emerging Markets Equity 1.78% --------------------------------------------------- EXAMPLES These examples are intended to help you compare the cost of investing in the RIASM contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying Trust fees and expenses. The examples below show the expenses (which expenses, including the Optional Participants Recordkeeping Services fee, are directly reflected in the participant's retirement account value) that a hypothetical contract owner would pay in the situations illustrated. For purposes of the two sets of examples below, the ongoing operations fee is computed by reference to the actual aggregate annual ongoing operations fee as a percentage of total assets by employer plans in the RIA annuity contract other than corporate plans, resulting in an estimated ongoing operations fee of $85.37 per $10,000. The examples reflect the $25 annual charge for the Optional Participant Recordkeeping Services. We assume there is no waiver of the withdrawal charge and that no loan has been taken. The charges used in the examples are the maximum expenses rather than the lower current expenses. The guaranteed interest option is not covered by the fee table and examples. However, the ongoing operations fee, the withdrawal charge, the loan fee, the Optional Participant Recordkeeping Services fee, and the administrative fee if you purchase an annuity payout option do apply to amounts in the guaranteed interest option. These examples should not be considered a representation of past or future expenses for any option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the examples is not an estimate or guarantee of future investment performance. Fee table 11 Separate Account No. 66 example: This example assumes that you invest $10,000 in variable investment Funds of Separate Account No. 66 under the contract for the time periods indicated. The example also assumes that your investment has a 5% return each year and assumes the highest and lowest fees and expenses of any of the available portfolios (before expense limitations) of each Trust. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: 12 Fee table SEPARATE ACCOUNT NO. 66
--------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period --------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years --------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: --------------------------------------------------------------------------------------------- AXA Premier VIP High Yield $817 $1,159 $1,513 $2,247 AXA Premier VIP Technology $901 $1,415 $1,944 $3,152 --------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: --------------------------------------------------------------------------------------------- EQ/Alliance Growth and Income $810 $1,138 $1,476 $2,167 EQ/Alliance Intermediate Government Securities $805 $1,123 $1,450 $2,111 EQ/Alliance International $833 $1,209 $1,598 $2,429 EQ/Alliance Large Cap Growth $863 $1,299 $1,749 $2,748 EQ/Alliance Quality Bond $804 $1,120 $1,445 $2,100 EQ/Alliance Small Cap Growth $828 $1,194 $1,573 $2,375 EQ/Bernstein Diversified Value $834 $1,212 $1,603 $2,440 EQ/Calvert Socially Responsible $852 $1,266 $1,694 $2,632 EQ/Capital Guardian Growth $842 $1,236 $1,644 $2,526 EQ/Capital Guardian International $868 $1,314 $1,774 $2,801 EQ/Capital Guardian Research $838 $1,224 $1,623 $2,483 EQ/Capital Guardian U.S. Equity $838 $1,224 $1,623 $2,483 EQ/Equity 500 Index $780 $1,044 $1,316 $1,818 EQ/Evergreen Omega $843 $1,239 $1,649 $2,536 EQ/FI Mid Cap $843 $1,239 $1,649 $2,536 EQ/FI Mid Cap Value $847 $1,251 $1,669 $2,579 EQ/JPMorgan Value Opportunities $865 $1,305 $1,759 $2,769 EQ/Janus Large Cap Growth $835 $1,215 $1,608 $2,451 EQ/Lazard Small Cap Value $847 $1,251 $1,669 $2,579 EQ/Marsico Focus $860 $1,290 $1,734 $2,717 EQ/Mercury Basic Value Equity $830 $1,200 $1,583 $2,397 EQ/Mercury International Value $868 $1,314 $1,774 $2,801 EQ/MFS Emerging Growth Companies $839 $1,227 $1,628 $2,494 EQ/MFS Investors Trust $838 $1,224 $1,623 $2,483 EQ/Money Market $788 $1,071 $1,363 $1,920 EQ/Van Kampen Emerging Markets Equity $921 $1,476 $2,045 $3,359 --------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period --------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years --------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: --------------------------------------------------------------------------------------------- AXA Premier VIP High Yield $374 $ 788 $1,224 $2,422 AXA Premier VIP Technology $463 $1,057 $1,675 $3,327 --------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: --------------------------------------------------------------------------------------------- EQ/Alliance Growth and Income $366 $ 765 $1,185 $2,342 EQ/Alliance Intermediate Government Securities $361 $ 749 $1,158 $2,286 EQ/Alliance International $391 $ 841 $1,313 $2,604 EQ/Alliance Large Cap Growth $423 $ 935 $1,471 $2,923 EQ/Alliance Quality Bond $360 $ 746 $1,153 $2,275 EQ/Alliance Small Cap Growth $386 $ 825 $1,286 $2,550 EQ/Bernstein Diversified Value $392 $ 844 $1,318 $2,615 EQ/Calvert Socially Responsible $411 $ 900 $1,413 $2,807 EQ/Capital Guardian Growth $401 $ 869 $1,360 $2,701 EQ/Capital Guardian International $428 $ 950 $1,497 $2,976 EQ/Capital Guardian Research $397 $ 856 $1,339 $2,658 EQ/Capital Guardian U.S. Equity $397 $ 856 $1,339 $2,658 EQ/Equity 500 Index $334 $ 666 $1,018 $1,993 EQ/Evergreen Omega $402 $ 872 $1,366 $2,711 EQ/FI Mid Cap $402 $ 872 $1,366 $2,711 EQ/FI Mid Cap Value $406 $ 885 $1,387 $2,754 EQ/JPMorgan Value Opportunities $425 $ 941 $1,481 $2,944 EQ/Janus Large Cap Growth $393 $ 847 $1,323 $2,626 EQ/Lazard Small Cap Value $406 $ 885 $1,387 $2,754 EQ/Marsico Focus $419 $ 925 $1,455 $2,892 EQ/Mercury Basic Value Equity $388 $ 831 $1,297 $2,572 EQ/Mercury International Value $428 $ 950 $1,497 $2,976 EQ/MFS Emerging Growth Companies $398 $ 859 $1,344 $2,669 EQ/MFS Investors Trust $397 $ 856 $1,339 $2,658 EQ/Money Market $343 $ 695 $1,067 $2,095 EQ/Van Kampen Emerging Markets Equity $485 $1,121 $1,781 $3,534 --------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period ------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years ------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: ------------------------------------------------------------------------------------------- AXA Premier VIP High Yield $199 $613 $1,049 $2,247 AXA Premier VIP Technology $288 $882 $1,500 $3,152 --------------------------------------------------------------------------------- ------ EQ ADVISORS TRUST: ------------------------------------------------------------------------------------------- EQ/Alliance Growth and Income $191 $590 $1,010 $2,167 EQ/Alliance Intermediate Government Securities $186 $574 $ 983 $2,111 EQ/Alliance International $216 $666 $1,138 $2,429 EQ/Alliance Large Cap Growth $248 $760 $1,296 $2,748 EQ/Alliance Quality Bond $185 $571 $ 978 $2,100 EQ/Alliance Small Cap Growth $211 $650 $1,111 $2,375 EQ/Bernstein Diversified Value $217 $669 $1,143 $2,440 EQ/Calvert Socially Responsible $236 $725 $1,238 $2,632 EQ/Capital Guardian Growth $226 $694 $1,185 $2,526 EQ/Capital Guardian International $253 $775 $1,322 $2,801 EQ/Capital Guardian Research $222 $681 $1,164 $2,483 EQ/Capital Guardian U.S. Equity $222 $681 $1,164 $2,483 EQ/Equity 500 Index $159 $491 $ 843 $1,818 EQ/Evergreen Omega $227 $697 $1,191 $2,536 EQ/FI Mid Cap $227 $697 $1,191 $2,536 EQ/FI Mid Cap Value $231 $710 $1,212 $2,579 EQ/JPMorgan Value Opportunities $250 $766 $1,306 $2,769 EQ/Janus Large Cap Growth $218 $672 $1,148 $2,451 EQ/Lazard Small Cap Value $231 $710 $1,212 $2,579 EQ/Marsico Focus $244 $750 $1,280 $2,717 EQ/Mercury Basic Value Equity $213 $656 $1,122 $2,397 EQ/Mercury International Value $253 $775 $1,322 $2,801 EQ/MFS Emerging Growth Companies $223 $684 $1,169 $2,494 EQ/MFS Investors Trust $222 $681 $1,164 $2,483 EQ/Money Market $168 $520 $ 892 $1,920 EQ/Van Kampen Emerging Markets Equity $310 $946 $1,606 $3,359 -------------------------------------------------------------------------------------------
Fee table 13 Pooled separate account examples: These examples assume that you invest $10,000* in the variable investment Funds of the Pooled separate accounts under the contract for the time periods indicated. The examples also assume that your investment has a 5% return each year. The example also assumes maximum contract charges and total annual expenses of the portfolios (before expense limitations) set forth in the previous charts. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
------------------------------------------------------------------------------------------------------------------- If you surrender your contract If you annuitize at the end of the at the end of the applicable time period applicable time period ------------------------------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years ------------------------------------------------------------------------------------------------------------------- Alliance Balanced $100 $170 $240 $399 $214 $293 $372 $574 Alliance Bond $100 $170 $240 $399 $214 $293 $372 $574 Alliance Common Stock $100 $170 $240 $399 $214 $293 $372 $574 Alliance Mid Cap Growth $100 $170 $240 $399 $214 $293 $372 $574 -------------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of the applicable time period -------------------------------------------------------------------------------- 10 1 year 3 years 5 years years -------------------------------------------------------------------------------- Alliance Balanced $39 $118 $197 $399 Alliance Bond $39 $118 $197 $399 Alliance Common Stock $39 $118 $197 $399 Alliance Mid Cap Growth $39 $118 $197 $399 -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION Please see the Appendix at the end of this prospectus for unit values and the number of units outstanding of each Fund available as of December 31, 2005. FINANCIAL STATEMENTS OF THE FUNDS Each of the Funds is, or is part of, one of our separate accounts as described in "About the separate accounts" under "More information" later in this prospectus. The financial statements of the Funds are contained in the SAI. The financial statements for the portfolios of each Trust are included in the SAI for each Trust. 14 Fee table 1. RIA features and benefits -------------------------------------------------------------------------------- INVESTMENT OPTIONS We offer 33 investment options under RIA, including the Funds and the guaranteed interest option. Each Fund has a different investment objective. The Funds try to meet their investment objectives by investing either in a portfolio of securities or by holding mutual fund shares. The maximum number of active investment options that can be available under any RIA annuity contract at any time is 25. We cannot assure you that any of the Funds will meet their investment objectives. You can lose your principal when investing in the Funds. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market Fund. THE ALLIANCE BOND FUND OBJECTIVE The Alliance Bond Fund (Separate Account No. 13) is available only to employer plans that signed an agreement to invest monies through the RIA annuity contract in the Alliance Bond Fund before June 1, 1994. The Alliance Bond Fund seeks to achieve maximum total return, consistent with investment quality, with less volatility than a long-term bond account, by investing primarily in publicly traded fixed-income securities, such as bonds, debentures and notes. The Fund maintains its own portfolio of securities. The Alliance Bond Fund is designed for participants who seek a greater rate of return than that normally provided by money market investments and less volatility than that experienced by long-term bond investments. INVESTMENT STRATEGIES The Alliance Bond Fund invests primarily in investment grade fixed-income securities including, but not limited to, the following: obligations issued or guaranteed by the U.S. Government (such as U.S. Treasury securities), its agencies (such as the Government National Mortgage Association), or instrumentalities (such as the Federal National Mortgage Association); U.S. dollar-denominated sovereign and corporate debt of developed and developing nations; mortgage related securities (including agency and non-agency fixed, ARM and hybrid pass-throughs, agency and non-agency CMO's, commercial mortgage-backed securities and dollar rolls); collateralized mortgage obligations; asset-backed securities; zero coupon bonds; Trust preferred securities; and inflation protected securities and equipment trust certificates. The Fund will not invest more than 5% of its assets in obligations of a single issuer, except government securities. The Fund may also purchase 144A restricted securities. Investment grade securities are those rated within the four highest credit categories (AAA, AA, A or BBB) by Standard & Poor's Corp. ("S&P") or (Aaa, Aa, A or Baa) by Moody's Investors Service, Inc. ("Moody's"), BBB or higher by Fitch or, if unrated, are of comparable investment quality as determined by our credit analysis. Bonds rated below A by S&P, Moody's or Fitch are more susceptible to adverse economic conditions or changing circumstances than those rated A or higher, but we regard these lower-rated bonds as having an adequate capacity to pay principal and interest. The account may invest a limited portion of its assets in debt securities of companies without substantial business in the U.S. The weighted average duration of the Fund's total portfolio is expected to be approximately +/-10% of the Lehman Intermediate Government/Credit Index. Duration is a principle used in selecting portfolio securities that indicates a particular fixed-income security's price volatility. Duration is measured by taking into account (1) all of the expected payments relating to that security and (2) the time in the future when each payment will be made, and then weighting all such times by the present value of the corresponding payments. The duration of a fixed-income security with interest payments occurring prior to its maturity is always shorter than its term to maturity (except in the case of a zero coupon security). In addition, given identical maturities, the lower the stated rate of interest of a fixed-income security, the longer its duration, and, conversely, the higher the stated rate of interest of a fixed-income security, the shorter its duration. We believe that the Alliance Bond Fund's policy of purchasing intermediate duration bonds significantly reduces the volatility of the Fund's unit price over that of a long-term bond account. Additionally, the Alliance Bond Fund also may invest in high-quality money market securities, including, but not limited to, obligations of the U.S. Government, its agencies and instrumentalities; negotiable certificates of deposit; banker's acceptances or bank time deposits; repurchase agreements; master demand notes; and other money market instruments. For temporary or defensive purposes, the Alliance Bond Fund also may invest in money market securities without limitation. Finally, the Alliance Bond Fund may purchase fixed-income securities and money market securities having adjustable rates of interest with periodic demand features. The Alliance Bond Fund also may purchase fixed-income securities and certain money market securities on a when-issued or delayed delivery basis. RISKS OF INVESTMENT STRATEGIES See "Risks of investing in the Funds" later in this prospectus, for information on the risks associated with an investment in the Funds generally, and in the Alliance Bond Fund specifically. THE ALLIANCE BALANCED FUND OBJECTIVES The Alliance Balanced Fund (Separate Account No. 10) seeks both appreciation of capital and current income by investing in a diversified portfolio of common stocks, other equity-type securities and longer-term fixed income securities. The Fund also seeks current income by investing in publicly traded debt securities and short-term money market instruments. The Fund maintains its own portfolio of securities. RIA features and benefits 15 INVESTMENT STRATEGIES The Alliance Balanced Fund varies the portion of its assets invested in each type of security in accordance with our evaluation of economic conditions, the general level of common stock prices, anticipated interest rates and other relevant considerations, including our assessment of the risks associated with each investment medium. In general, the Fund invests the greatest portion of its assets in equity securities. During each of the past ten years, the Fund invested between 45.5% and 63.9% of its assets in equity securities, including equity-type securities such as convertible preferred stocks or convertible debt instruments. The Fund's investment in non-money market debt securities consists primarily of (a) publicly traded securities issued or guaranteed by the United States Government or its agencies or instrumentalities and (b) U.S. dollar-denominated sovereign and corporate debt of developed and developing nations, including but not limited to, bank obligations, notes, asset-backed securities, mortgage-related securities (including agency and non-agency fixed, ARM and hybrid pass-throughs, agency and non-agency CMO's, commercial mortgage-backed securities and dollar rolls), collateralized mortgage obligations, zero coupon bonds and preferred stock. The Fund may also buy trust preferred securities and inflation protected securities. The Fund may also purchase 144A securities. The Fund may also buy debt securities with equity features such as conversion or exchange rights, warrants for the acquisition of stock, or participations based on revenues, sales or profits. The Fund only invests in investment grade non-money market debt securities, i.e., those rated, at the time of acquisition, BBB or higher by S&P or Baa or higher by Moody's or BBB or higher by Fitch, if unrated, are of comparable investment quality. The overall duration of the fund's debt securities is maintained within approximately 10% of the Lehman Aggregate Bond Index. The Fund also may invest (a) up to 10% of its total assets in restricted securities; (b) in foreign securities without substantial business in the United States; (c) in repurchase agreements; and (d) in money market securities. The Fund may also purchase and sell securities on a when-issued or delayed delivery basis. Finally, the Fund may (a) invest in put and call options and (b) trade in stock index or interest rate futures, and foreign currency forward contracts, for hedging purposes only. In option transactions, the economic benefit will be offset by the cost of the option, while any loss would be limited to such cost. The Fund also enters into hedging transactions. These transactions are undertaken only when any required regulatory procedures have been completed and when economic and market conditions indicate that such transactions would serve the best interests of the Fund. RISKS OF INVESTMENT STRATEGIES See "Risks of investing in the Funds" later in this prospectus, for information on the risks associated with an investment in the Funds generally, and in the Alliance Balanced Fund specifically. THE ALLIANCE COMMON STOCK FUND OBJECTIVE The Alliance Common Stock Fund seeks to achieve long-term growth of capital by investing in the securities of companies that we believe will share in the growth of our nation's economy -- and those of other leading industrialized countries -- over a long period. The Fund maintains its own portfolio of securities. INVESTMENT STRATEGIES The Alliance Common Stock Fund (Separate Account No. 4) invests primarily in common stock. The Fund generally invests in securities of intermediate and large sized companies, but may invest in stocks of companies of any size. At times the Fund may invest its equity holdings in a relatively small number of issuers, provided that no investment when made causes more than 10% of the Fund's assets to be invested in the securities of one issuer. The Alliance Common Stock Fund also may invest smaller amounts in other equity-type securities, such as convertible preferred stocks or convertible debt instruments. The Fund also may invest in non-equity investments, including non-participating and non-convertible preferred stocks, bonds and debentures. The Fund also may invest up to 15% of its total assets in foreign securities (securities of established foreign companies without substantial business in the United States). The Alliance Common Stock Fund may make temporary investments in government obligations, short-term commercial paper and other money market instruments. RISKS OF INVESTMENT STRATEGIES See "Risks of investing in the Funds" later in this prospectus, for information on the risks associated with an investment in the Funds generally, and in the Alliance Common Stock Fund specifically. THE ALLIANCE MID CAP GROWTH FUND OBJECTIVE The Alliance Mid Cap Growth Fund (Separate Account No. 3) seeks to achieve long-term capital growth through a diversified portfolio of equity securities. The account will attempt to achieve this objective by investing primarily in the common stock of medium-sized companies which have the potential to grow faster than the general economy and to grow into much larger companies. INVESTMENT STRATEGIES The Alliance Mid Cap Growth Fund is actively managed to obtain excess return versus the Russell Mid Cap Growth Index. The Fund invested at least 80% of its total assets in the common stock of companies with medium capitalizations at the time of the Fund's investment, similar to the market capitalizations of companies in the Russell Mid Cap Growth Index. Companies whose capitalizations no longer meet this definition after purchase continue to be considered to have a medium market capitalization for purposes of the 80% policy. If deemed appropriate, in order to meet the investment objectives, the Fund may invest in companies in cyclical industries as well as in securities that the adviser believes are temporarily undervalued. The Fund may also invest in foreign companies without substantial business in the United States. The Fund may also invest in convertible preferred stocks, convertible debt securities and short-term debt securities such as corporate notes, 16 RIA features and benefits and temporarily invest in money market instruments. Additionally, the Fund may invest up to 10% of its total assets in restricted securities. The Fund attempts to generate excess return by taking active risk in security selection, and implementing a "bottom up" stock selection approach, looking for companies with unique growth potential. Economic sector allocation will also be taken into consideration, and the account may often be concentrated in industries where research resources indicate there is high growth potential. The Fund is fully invested. RISKS OF INVESTMENT STRATEGIES See "Risks of investing in the Funds" later in this prospectus, for information on the risks associated with an investment in the Funds generally, and in the Alliance Mid Cap Growth Fund specifically. Note, however, that due to the Alliance Mid Cap Growth Fund's investment policies, this Fund provides greater growth potential and greater risk than the Alliance Bond, Alliance Common Stock and Alliance Balanced Funds. As a result, you should consider limiting the amount allocated to this Fund, particularly as you near retirement. INVESTMENT MANAGER OF THE ALLIANCE BOND, ALLIANCE BALANCED, ALLIANCE COMMON STOCK AND ALLIANCE MID CAP GROWTH FUNDS We manage the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds. We currently use the personnel and facilities of AllianceBernstein L.P. ("Alliance") for portfolio management, securities selection and transaction services. We are the majority-owners of Alliance, a limited partnership. We and Alliance are each registered investment advisers under the Investment Advisers Act of 1940, as amended. Alliance acts as investment adviser to various separate accounts and general accounts of AXA Equitable and other affiliated insurance companies. Alliance also provides investment management and advisory services to mutual funds, endowment funds, insurance companies, foreign entities, qualified and non-tax qualified corporate funds, public and private pension and profit-sharing plans, foundations and tax-exempt organizations. The following portfolio managers are primarily responsible for the day-to-day management of the Funds: -------------------------------------------------------------------------------- Business experience Fund Portfolio Manager for past 5 years -------------------------------------------------------------------------------- Alliance Bond Fund Alison Martier (Team Portfolio manager at Leader) Alliance since 1993. Shawn Keegan Portfolio manager at Alliance since 2001 Joran Laird Portfolio manager at Alliance since 2005 Larry Hill Portfolio manager at Alliance since 2000. Greg Wilensky Portfolio manager at Alliance since 1996. -------------------------------------------------------------------------------- Alliance Balanced Fund Christopher Toub Portfolio manager at Alliance since 1992. -------------------------------------------------------------------------------- Alliance Common Stock Alan Levi Portfolio manager at Fund Alliance since 1995. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Business experience Fund Portfolio Manager for past 5 years -------------------------------------------------------------------------------- Alliance Mid Cap Growth Catherine Wood Portfolio manager at Fund Alliance since 2001; prior thereto, General Partner and co-manager of Portfolio at Tupelo Capital Management. -------------------------------------------------------------------------------- The SAI provides additional information about the portfolio managers including compensation, other accounts managed and ownership of securities of the Funds. As of December 31, 2005 Alliance had total assets under management of approximately $579 billion. Alliance's main office is located at 1345 Avenue of the Americas, New York, New York 10105. The Investment Committee of our Board of Directors must authorize or approve the securities held in the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds. Subject to the Investment Committee's broad supervisory authority, our investment officers and managers have complete discretion over the assets of these Funds and have been given discretion as to sales and, within specified limits, purchases of stocks, other equity securities and certain debt securities. When an investment opportunity arises that is consistent with the objectives of more than one account, we allocate investment opportunities among accounts in an impartial manner based on certain factors such as investment objective and current investment and cash positions. PORTFOLIO HOLDINGS POLICY FOR THE POOLED SEPARATE ACCOUNTS A description of the policies and procedures with respect to disclosure of the portfolio securities of The Alliance Bond Fund, The Alliance Balanced Fund, The Alliance Common Stock Fund and the Alliance Mid Cap Growth Fund is available in the SAI. Generally, portfolio information is available 15 days after the month and free of charge by calling 1-(866) 642-3127. FUNDS INVESTING IN THE TRUSTS The Funds of Separate Account No. 66 invest in corresponding portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The investment results you will experience in any one of those Funds will depend on the investment performance of the corresponding portfolios. The table below shows the names of the corresponding portfolios, their investment objectives, and their advisers. RIA features and benefits 17 PORTFOLIOS OF THE TRUSTS You should note that some portfolios have objectives and strategies that are substantially similar to those of certain retail funds that are purchased directly rather than under a variable insurance product such as Retirement Investment Account variable annuity. These funds may even have the same manager(s) and/or a similar name. However, there are numerous factors that can contribute to differences in performance between two investments, particularly over short periods of time. Such factors include the timing of stock purchases and sales; differences in fund cash flows; and specific strategies employed by the portfolio manager. AXA Equitable serves as the investment manager of the Portfolios of the AXA Premier VIP Trust and the EQ Advisors Trust. As such, AXA Equitable oversees the activities of the investment advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those advisers. The advisers for these Portfolios, listed in the chart below, are those who make the investment decisions for each Portfolio.
------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust Portfolio Name Objective Adviser(s) ------------------------------------------------------------------------------------------------------------------------------------ AXA PREMIER VIP HIGH YIELD High total return through a combination of current o Pacific Investment Management Company income and capital appreciation. LLC o Post Advisory Group, LLC ------------------------------------------------------------------------------------------------------------------------------------ AXA PREMIER VIP TECHNOLOGY EQ Long-term growth of capital. o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Portfolio Name Objective Adviser(s) ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o AllianceBernstein L.P. INCOME ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o AllianceBernstein L.P. GOVERNMENT SECURITIES relative stability of principal. ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCE LARGE CAP Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. GROWTH ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o AllianceBernstein L.P. moderate risk to capital. ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. GROWTH ------------------------------------------------------------------------------------------------------------------------------------ EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o AllianceBernstein L.P. ------------------------------------------------------------------------------------------------------------------------------------ EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc. RESPONSIBLE and Bridgeway Capital Management Inc. ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN GROWTH Seeks long-term growth of capital. o Capital Guardian Trust Company ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company INTERNATIONAL ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company RESEARCH ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company EQUITY ------------------------------------------------------------------------------------------------------------------------------------ EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o AllianceBernstein L.P. the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. ------------------------------------------------------------------------------------------------------------------------------------
18 RIA features and benefits Portfolios of the Trusts (continued)
------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Portfolio Name Objective Adviser(s) ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management Company, LLC ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company ------------------------------------------------------------------------------------------------------------------------------------ EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN VALUE Long-term capital appreciation. o J.P. Morgan Investment Management Inc. OPPORTUNITIES ------------------------------------------------------------------------------------------------------------------------------------ EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management, LLC ------------------------------------------------------------------------------------------------------------------------------------ EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC ------------------------------------------------------------------------------------------------------------------------------------ EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors EQUITY ------------------------------------------------------------------------------------------------------------------------------------ EQ/MERCURY INTERNATIONAL Seeks to provide current income and long-term growth o Merrill Lynch Investment Managers VALUE of income, accompanied by growth of capital. International Limited ------------------------------------------------------------------------------------------------------------------------------------ EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management COMPANIES ------------------------------------------------------------------------------------------------------------------------------------ EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with a secondary o MFS Investment Management objective to seek reasonable current income. For purposes of this Portfolio, the words "reasonable current income" mean moderate income. ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONEY MARKET Seeks to obtain a high level of current income, o The Dreyfus Corporation preserve its assets and maintain liquidity. ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN EMERGING Seeks long-term capital appreciation. o Morgan Stanley Investment MARKETS EQUITY Management, Inc. ------------------------------------------------------------------------------------------------------------------------------------
You should consider the investment objectives, risks, and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. RIA features and benefits 19 RISKS OF INVESTING IN THE FUNDS All of the Funds invest in securities of one type or another. You should be aware that any investment in securities carries with it a risk of loss, and you could lose money investing in the Funds. The different investment objectives and policies of each Fund may affect the return of each Fund and the risks associated with an investment in that Fund. Additionally, market and financial risks are inherent in any securities investment. By market risks, we mean factors which do not necessarily relate to a particular issuer, but affect the way markets, and securities within those markets, perform. Market risks can be described in terms of volatility, that is, the range and frequency of market value changes. Market risks include such things as changes in interest rates, general economic conditions and investor perceptions regarding the value of debt and equity securities. By financial risks we mean factors associated with a particular issuer which may affect the price of its securities, such as its competitive posture, its earnings and its ability to meet its debt obligations. Both the financial and market risks of an investment in the Alliance Bond Fund are expected to be less than those for the Alliance Common Stock, Alliance Balanced and Alliance Mid Cap Growth Funds. The risk factors associated with an investment in the Alliance Bond, Alliance Common Stock, Alliance Mid Cap Growth and Alliance Balanced Funds are described below. See the SAI for additional information regarding certain investment techniques used by these Funds. See the prospectuses for each Trust for risk factors and investment techniques associated with the portfolios in which the other Funds invest. RISK FACTORS -- ALLIANCE BOND, ALLIANCE COMMON STOCK, ALLIANCE MID CAP GROWTH AND ALLIANCE BALANCED FUNDS COMMON STOCK. Investing in common stocks and related securities involves the risk that the value of the stocks or related securities purchased will fluctuate. These fluctuations could occur for a single company, an industry, a sector of the economy, or the stock market as a whole. These fluctuations could cause the value of the Fund's investments -- and, therefore, the value of the Fund's units -- to fluctuate. SECURITIES OF MEDIUM AND SMALLER SIZED COMPANIES. The Alliance Mid Cap Growth Fund invests primarily in the securities of medium-sized companies. The Alliance Common Stock and Alliance Balanced Funds may also make these investments, as well as investments in smaller-sized companies. The securities of small and medium- sized, less mature, lesser known companies involve greater risks than those normally associated with larger, more mature, well-known companies. Therefore, consistent earnings may not be as likely in small companies as in large companies. The Funds also run a risk of increased and more rapid fluctuations in the value of its investments in securities of small or medium-sized companies. This is due to the greater business risks of small-size and limited product lines, markets, distribution channels, and financial and managerial resources. Historically, the price of small (less than $1 billion) and medium (between $1 and $15 billion) capitalization stocks and stocks of recently organized companies have fluctuated more than the larger capitalization stocks and the overall stock market. One reason is that small and medium-sized companies have a lower degree of liquidity in the markets for their stocks, and greater sensitivity to changing economic conditions. NON-EQUITY SECURITIES. Investing in non-equity securities, such as bonds and debentures, involves the risk that the value of these securities held by the Alliance Bond, the Alliance Balanced and the Alliance Common Stock Funds -- and, therefore, the value of each of the Fund's units -- will fluctuate with changes in interest rates (interest rate risk) and the perceived ability of the issuer to make interest or principal payments on time (credit risk). A decline in prevailing interest rates generally will increase the value of the securities held by the Alliance Bond Fund, while an increase in prevailing interest rates usually reduces the value of the Alliance Bond Fund's holdings. As a result, interest rate fluctuations will affect the value of Alliance Bond Fund units, but will not affect the income received from the Fund's current portfolio holdings. Moreover, convertible securities, which may be in the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds, such as convertible preferred stocks or convertible debt instruments, contain both debt and equity features, and may lose significant value in periods of extreme market volatility. FOREIGN INVESTING. Investing in securities of foreign companies that may not do substantial business in the United States involves additional risks, including risk of loss from changes in the political or economic climate of the countries in which these companies do business. Foreign currency fluctuations, exchange controls or financial instability could cause the value of the Alliance Common Stock, Mid Cap Growth and Balanced Funds' foreign investments to fluctuate. Additionally, foreign accounting, auditing and disclosure standards may differ from domestic standards, and there may be less regulation in foreign countries of stock exchanges, brokers, banks, and listed companies than in the United States. As a result, the Fund's foreign investments may be less liquid and their prices may be subject to greater fluctuations than comparable investments in securities of U.S. issuers. RESTRICTED SECURITIES. Investing in restricted securities involves additional risks because these securities generally (1) are less liquid than non-restricted securities and (2) lack readily available market quotations. Accordingly, the Alliance Balanced and the Alliance Mid Cap Growth Funds may be unable to quickly sell their restricted security holdings at fair market value. The following discussion describes investment risks unique to either the Alliance Common Stock Fund, Alliance Mid Cap Growth Fund or the Alliance Balanced Fund. INVESTMENT CONCENTRATION. Concentrating the Alliance Common Stock Fund's equity holdings in the stocks of a few companies increases the risk of loss, because a decline in the value of one of these stocks would have a greater impact on the Fund. As of December 31, 2005, the Fund held 17.5 of its net assets in the stocks of four issuers. See Separate Account No. 4 (Pooled) Statement of Investments and Net Assets in the SAI. 20 RIA features and benefits RISKS OF INVESTMENT STRATEGIES. Due to the Alliance Mid Cap Growth Fund's aggressive investment policies, this Fund provides greater growth potential and greater risk than the Alliance Common Stock and Alliance Balanced Funds. As a result, you should consider limiting the amount allocated to this Fund, particularly as you near retirement. ASSET ALLOCATION POLICIES. The Alliance Balanced Fund varies the portion of it's assets invested in equity and non-equity securities with our evaluation of various factors. The Fund is subject to the risk that we may incorrectly predict changes in the relative values of the stock and bond markets. CHANGE OF INVESTMENT OBJECTIVES We can change the investment objectives of the Alliance Bond, Alliance Common Stock, Alliance Mid Cap Growth and Alliance Balanced Funds if the New York State Insurance Department approves the change. The investment objectives of the portfolios of the Trusts may be changed by the Board of Trustees of each Trust without the approval of shareholders. See "Voting rights" under "More information" later in this prospectus. GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this prospectus. The amount allocated to the guaranteed interest option earns interest at the current guaranteed interest rate which is an annual effective rate. After we credit the interest, we deduct certain charges and fees. We credit interest through and allocate interest on the date of any transfer or withdrawal transaction. We credit interest each day of the month to the account value in the guaranteed interest account at the beginning of the day at a daily rate equivalent to the guaranteed interest rate that applies to those amounts. CURRENT AND MINIMUM INTEREST RATES Except as described below, the "current rate" is the rate of interest that we actually credit to amounts in the guaranteed interest option for any given calendar year. We declare current rates for each class of employer plan that is using the RIA annuity contract as its funding vehicle before the beginning of each calendar year. In addition to the current rate, we declare "minimum rates" for the next two calendar years. Except as stated below, the minimum interest rates will never be lower than 4%. If the employer plan's contract permits investment in the Alliance Bond Fund, we may at times have the right to declare a lower current rate of interest ("revised rate") which will remain in effect for the remainder of the calendar year only for new amounts contributed or transferred by the employer plan to the guaranteed interest option. See "Special rules applicable to the Alliance Bond Fund" later in this prospectus, for the circumstances under which a revised rate might be declared. Such revised rate will reflect market interest rates for money market instruments and other short-term investments existing at the time any such amount is contributed or transferred to the guaranteed interest option without regard to any previously declared minimum rate. The current interest rate for 2006 and the minimum interest rates for 2007 and 2008 guaranteed for each class, are stated in the proposal documents submitted to sponsors of prospective RIA employer plans. The establishment of new classes will not decrease the rates that apply to employer plans already assigned to a previous class. The effective current rate for 2007 and the minimum rates effective for calendar year 2009 will be declared in December 2006. CLASSES OF EMPLOYER PLANS We assigned an employer plan to a "class" of employer plans upon its participation in the Master Retirement Trust in order to help us determine the current and minimum guaranteed rates of interest that apply for the employer plan participating in the guaranteed interest option under the RIA annuity contract. The initial class of employer plans to which an employer plan was assigned depended on the date the plan was adopted. REVISED INTEREST RATES All of the following conditions must exist for us to declare a revised rate: o on the date of the allocation, the aggregate amount held in the Alliance Bond Fund with respect to all employer plans comprising AXA Equitable's Small Pension book of business is at least 10% of the aggregate amount then held under all the contracts which fund those plans; o on the date of the allocation, the "current" guaranteed interest rate with respect to the employer plan's guaranteed interest option that would otherwise apply, exceeds the benchmark treasury rate by at least 0.75%; and o prior allocations to the guaranteed interest option for the employer plan during that calendar year equal or exceed 110% of the average annual allocations to the guaranteed interest option for the employer plan during the three immediately preceding calendar years. If we declare a revised rate for plans permitted to invest in the Alliance Bond Fund the employer or plan trustee may, by written notice, withdraw all or part of the amount that would be credited with such lower revised rate, without deduction of the contingent withdrawal charge. The investment, for the remainder of the calendar year, of such withdrawn or returned amounts in a funding vehicle other than RIA shall not be considered a violation of an employer plan's exclusive funding obligation provided such amount is contributed to RIA at the beginning of the following calendar year. RIA features and benefits 21 2. How we value your account value -------------------------------------------------------------------------------- FOR THE FUNDS. When you invest in a Fund, your contribution or transfer purchases "units" of that Fund. The unit value on any day reflects the value of the Fund's investments for the day and the charges and expenses we deduct from the Fund. We calculate the number of units you purchase by dividing the amount you invest by the unit value of the Fund as of the close of business on the day we receive your contribution or transfer instruction. -------------------------------------------------------------------------------- Generally, our "business day" is any day on which the New York Stock Exchange is open for trading. A business day does not include any day we choose not to open due to emergency conditions. We may also close early due to emergency conditions. -------------------------------------------------------------------------------- On any given day, your account value in any Fund equals the number of the Fund's units credited to your account, adjusted for any Fund's units cancelled from your account, multiplied by that day's value for one Fund unit. In order to take deductions from any Fund, we cancel units having a value equal to the amount we need to deduct. Otherwise, the number of your Fund units of any Fund does not change unless you make additional contributions, make a withdrawal, make a transfer, or request some other transaction that involves moving assets into or out of that Fund. FOR THE GUARANTEED INTEREST OPTION. The value of any investment in the guaranteed interest option is, at any time, the total contributions allocated to the guaranteed interest option, plus the interest earned, less (i) withdrawals to make employer plan benefit payments, (ii) withdrawals to make other employer plan withdrawals (including loans) and (iii) charges and fees provided for under the contracts. HOW WE DETERMINE THE UNIT VALUE When contributions are invested in the Funds, the number of units outstanding attributable to each Fund is correspondingly increased; and when amounts are withdrawn from one of these Funds, the number of units outstanding attributable to that Fund is correspondingly decreased. For the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds, the unit values reflect investment performance and investment management and financial accounting fees. We determine the respective unit values for these Funds by multiplying the unit value for the preceding business day by the net investment factor for that subsequent day. We determine the net investment factor as follows: o First, we take the value of the Fund's assets at the close of busi ness on the preceding business day. o Next, we add the investment income and capital gains, realized and unrealized, that are credited to the assets of the Fund during the business day for which the net investment factor is being determined. o Then, we subtract the capital losses, realized and unrealized, and investment management and financial accounting fees charged to the Fund during that business day. o Finally, we divide this amount by the value of the Fund's assets at the close of the preceding business day. Prior to June 1, 1994, for the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds, the investment management and financial accounting fees were deducted monthly from employer plan balances in these Funds. For a Fund of Separate Account No. 66, the unit value for any business day together with any preceding non-business days ("valuation period") is equal to the unit value for the preceding valuation period multiplied by the net investment factor for that Investment Fund for that valuation period. The net investment factor for a valuation period is: a (---) - c b where: (a) is the value of the Fund's shares of the corresponding portfolio at the end of the valuation period before giving effect to any amounts allocated to or withdrawn from the Investment Fund for the valuation period. For this purpose, we use the share value reported to us by the applicable Trust. This share value is after deduction for investment advisory fees and other expenses of each Trust. (b) is the value of the Fund's shares of the corresponding portfolio at the end of the preceding valuation period (after any amounts are allocated or withdrawn for that valuation period). (c) is the daily factor for the separate account administrative charge multiplied by the number of calendar days in the valuation period. HOW WE VALUE THE ASSETS OF THE FUNDS Assets of the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds are valued as follows: o Common stocks listed on national securities exchanges or traded on the NASDAQ national market system are valued at the last sale price. If on a particular day there is no sale, the stocks are valued at the latest available bid price reported on a composite tape. Other unlisted securities reported on the NASDAQ system are valued at inside (highest) quoted bid prices. o Foreign securities not traded directly, or in ADR form, in the United States, are valued at the last sale price in the local currency on an exchange in the country of origin. Foreign currency is converted into dollars at current exchange rates. 22 How we value your account value o United States Treasury securities and other obligations issued or guaranteed by the United States Government, its agencies or instrumentalities are valued at representative quoted prices. o Long-term publicly traded corporate bonds (i.e., maturing in more than one year) are valued at prices obtained from a bond pricing service of a major dealer in bonds when such prices are available; however, in circumstances where it is deemed appropriate to do so, an over-the-counter or exchange quotation may be used. o Convertible preferred stocks listed on national securities exchanges are valued at their last sale price or, if there is no sale, at the latest available bid price. o Convertible bonds and unlisted convertible preferred stocks are valued at bid prices obtained from one or more major dealers in such securities; where there is a discrepancy between dealers, values may be adjusted based on recent premium spreads to the underlying common stock. o Short-term debt securities that mature in more than 60 days are valued at representative quoted prices. Short-term debt securities that mature in 60 days or less are valued at amortized cost, which approximates market value. o Option contracts listed on organized exchanges are valued at last sale prices or closing asked prices, in the case of calls, and at quoted bid prices, in the case of puts. The market value of a put or call will usually reflect, among other factors, the market price of the underlying security. When a Fund writes a call option, an amount equal to the premium received by the Fund is included in the Fund's financial statements as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. The current market value of a traded option is the last sale price or, in the absence of a sale, the last offering price. When an option expires on its stipulated expiration date or a Fund enters into a closing purchase or sales transaction, the Fund realizes a gain or loss without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. When an option is exercised, the Fund realizes a gain or loss from the sale of the underlying security, and the proceeds of the sale are increased by the premium originally received, or reduced by the price paid for the option. FAIR VALUATION For the Pooled Separate Accounts, securities and other assets for which market quotations are not readily available (or for which market quotations may not be reliable) are valued at their fair value under the direction of our investment officers in accordance with accepted accounting practices and applicable laws and regulations. Market quotations may not be readily available or reliable if, for example, trading has been halted in the particular security; the security does not trade for an extended period of time; or a trading limit has been imposed. For the Funds offered under Separate Account No. 66, securities and other assets for which market quotations are not readily available (or for which market quotations may not be reliable) are valued at their fair value under policies and procedures established by the Trusts. For more information, please see the prospectuses for the applicable Trust. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded, but rather may be priced by another method deemed to reflect fair value. Such a policy is intended to assure that the net asset value of a separate account or fund fairly reflects security values as of the time of pricing. How we value your account value 23 3. Transfers -------------------------------------------------------------------------------- TRANSFERS AMONG INVESTMENT OPTIONS You may transfer accumulated amounts among the investment options at any time and in any amount, subject to the transfer limitations described below. In addition to our rules, transfers among the investment options may be subject to employer plan provisions which may limit or disallow such movements. We do not impose a charge for transfers among the investment options. The following section describes transfer limitations that apply, under certain situations, to amounts transferred out of the guaranteed interest option during the calendar quarter in which the request is made and the three preceding calendar quarters ("transfer period"). PARTICIPANT-DIRECTED PLANS. Under these plans, the contract owner has instructed us to accept the plan trustee's allocations that are in accordance with the plan participants' directions. If the employer elects to fund the employer plan with the guaranteed interest option and the EQ/Money Market, Alliance Bond, EQ/Alliance Intermediate Government Securities, EQ/Alliance Quality Bond or AXA Premier VIP High Yield Funds, during any transfer period, the following limitations apply: For plans electing the optional participant recordkeeping services ("PRS"), the maximum amount that may be transferred by the trustee on behalf of a participant from the guaranteed interest option is equal to the greater of: (i) 25% of the amount the participant had in the guaranteed interest option as of the last calendar day of the prior calendar year, or (ii) the total of all amounts transferred out of the guaranteed interest option during the prior calendar year on the participant's behalf. Generally, this means that new participants will not be able to direct the trustee to transfer amounts out of the guaranteed interest option during the first calendar year of their participation under the contract. If assets have been transferred from another funding vehicle by the employer, then the participant, for the remainder of that calendar year, may direct the trustee to transfer to the Funds up to 25% of such transferred amount that the participant initially allocated to the guaranteed interest option. For plans not electing the PRS, the maximum amount that may be transferred from the guaranteed interest option is equal to the greater of: (i) 25% of the amount the employer plan had in the guaranteed interest option as of the last calendar day of the prior calendar year, or (ii) the total of all amounts the employer plan transferred out of the guaranteed interest option during the prior calendar year. The employer plan is responsible for monitoring this transfer limitation. PRS is discussed in "Optional participant recordkeeping services" later in this prospectus. If assets have been transferred from another funding vehicle by the employer, then the trustee on behalf of the participant, for the remainder of that calendar year, may transfer to the Funds up to 25% of such transferred amount that was initially allocated to the guaranteed interest option. From time to time, we may remove certain restrictions that apply to transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day that we intend to reimpose the transfer restrictions. TRUSTEE-DIRECTED PLANS. Transfers of accumulated amounts among the investment options will be permitted as determined by us in our sole discretion only. If assets have been transferred from another funding vehicle by the employer, then the plan trustee, for the remainder of that calendar year, may transfer to an investment option up to 25% of such transferred amount that was initially allocated to the guaranteed interest option. SPECIAL RULES APPLICABLE TO THE ALLIANCE BOND FUND The Alliance Bond Fund is available only to participant-directed employer plans that signed an agreement to participate in that Fund prior to June 1, 1994 ("old employer plans"). If the employer has not made Funds of Separate Account No. 66 available under a participant-directed employer plan, special transfer rules which provide transfer restrictions, described below will apply. If an old employer plan adds any of the Funds held in Separate Account No. 66, the Alliance Bond Fund will no longer be subject to any transfer restrictions. However, transfers out of the guaranteed interest option will be subject to certain restrictions described above. TRANSFERS TO THE ALLIANCE BOND FUND. Except as described below, a plan participant in an old employer plan may elect to transfer to the Alliance Bond Fund any amount (in whole percentages) arising from participant-directed contributions. We will process requests to transfer amounts to the Alliance Bond Fund only if, at the time of the transfer request, the current guaranteed interest rate for the plan's guaranteed interest option is higher than the then-current "benchmark treasury rate." The benchmark treasury rate, as determined in accordance with our procedures, can be obtained via a daily tape recording by calling the RIA service office at 1-800-967-4560. If we will not process a transfer request, we will notify the employer within four business days. We will not redirect the transfer to another investment option and will not maintain any record of such request for future processing. TRANSFERS FROM THE ALLIANCE BOND FUND. A plan participant in an old employer plan may elect to transfer any amount (in whole percentages) held in the Alliance Bond Fund to one or more investment options. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to 24 Transfers accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the Fund or the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the Funds or the underlying portfolios in which the Funds invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a Fund or portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a Fund or portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so investment performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a Fund or portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of Fund or portfolio investments may impede efficient Fund or portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the Fund or portfolio manager to effect more frequent purchases and sales of Fund or portfolio securities. Similarly, a Fund or portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Funds or portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than Funds or portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting Fund or portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they rely on the policies and procedures implemented by the Fund or underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of the AXA Premier VIP Trust and EQ Advisors Trust (the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same Fund within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potential disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or the trusts may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. The current and any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. For the Pooled Separate Accounts, the portfolio managers review aggregate cash flows on a daily basis. If the portfolio managers consider transfer activity with respect to an account to be disruptive, AXA Equitable reviews contract owner trading activity to identify any potentially disruptive transfer activity. AXA Equitable follows the same policies and procedures identified in the previous paragraph. We may change those policies and procedures, and the current and any new or revised policies or procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that the trusts may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this prospectus, the trusts had implemented such a fee. If a redemption fee is implemented by the trusts, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading in the trust portfolios at the separate account level, contract owners may engage in frequent trading which may not be detected, for example due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the affiliated trusts will successfully impose restrictions on all disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. Transfers 25 4. Access to your account value -------------------------------------------------------------------------------- PARTICIPANT LOANS Contract withdrawals to make participant loans are available under RIA, if the employer plan permits them. Participants must apply for a plan loan through the employer plan. The plan administrator is responsible for administering the loan program. Loans are subject to restrictions under federal tax rules and ERISA. See "Tax information" later in this prospectus. Below we briefly summarize some of the important terms of the loan provisions under RIA. A more detailed discussion is provided in the SAI under "Loan provisions." Generally, all loan amounts must be taken from the guaranteed interest option. The participant must pay the interest as required by federal income tax rules. All repayments are made back into the guaranteed interest option. If the participant fails to repay the loan when due, the amount of the unpaid balance may be subject to a contingent withdrawal charge, taxes, and additional penalty taxes. Interest paid on a retirement plan loan is not deductible. The minimum amount of a loan for a participant is $1,000, and the maximum amount is 90% of the balances attributable to the plan participant in all the investment options. An employer plan may impose additional conditions or restrictions on loan transactions. We also charge a loan fee in an amount equal to 1% of the loan principal amount on the date a loan is made. CHOOSING BENEFIT PAYMENT OPTIONS RIA offers a variety of benefit payment options, subject to the provisions of an employer's plan. Plan participants should consult their employer for details. An employer's plan may allow a choice of one or more of the following forms of distribution: o purchase of one of our annuities; o lump sum distribution; o use of part of the proceeds to purchase one of our annuities with the balance to be paid as a lump sum; or o permitted cash withdrawals. Subject to the provisions of your plan, RIA makes available the following forms of fixed annuities: o life annuity; o life annuity - period certain; o life annuity - refund certain; o period certain annuity; and o qualified joint and survivor life annuity. All of the forms outlined above (with the exception of the qualified joint and survivor life annuity) are available as either single or joint life annuities. We also offer other annuity forms not outlined here. The various fixed annuities we offer under RIA are described in greater detail in the SAI under "Annuity benefits." As a general matter, the minimum amount that can be used to purchase any type of annuity, net of all applicable charges and fees, is $3,500. An annuity administrative fee of $175 will be deducted from the amount used to purchase an annuity. We require that the amount of any benefit distribution from an employer plan that uses RIA as a partial investment funding vehicle be in proportion to the amount of plan assets held in RIA, unless we and the plan trustees specifically agree in writing to some other method. Requests for cash distributions must be made to us on an aggregate basis opposed to a participant-by-participant basis, except for employer plans using the PRS discussed in "Optional participant recordkeeping services" later in this prospectus. Cash withdrawals by a plan participant prior to retirement may give rise to contingent withdrawal charges, and tax penalties or other adverse tax consequences. See "Tax information" later in this prospectus. We make distribution checks payable to the trustees of the plan. The plan trustees are responsible for distribution of Funds to the participant or other payee and for any applicable federal and state income tax withholding and reporting. See "Tax information" later in this prospectus. RIA does not have separate disability or death benefit provisions. All disability and death benefits are provided in accordance with the employer plan. 26 Access to your account value 5. RIA -------------------------------------------------------------------------------- This section explains RIA in further detail. It is intended for employers who use RIA, but contains information of interest to plan participants as well. Plan participants should, of course, understand the provisions of their plan that describes their rights in more specific terms. RIA is an investment program designed for employer plans that qualify for tax-favored treatment under Section 401(a) of the Code. Eligible employer plans include defined benefit plans, defined contribution plans or profit-sharing plans, including 401(k) plans. These employer plans generally must also meet the requirements of ERISA. RIA consists of two group annuity contracts ("contracts") issued by AXA Equitable, a Master Retirement Trust agreement, a participation or installation agreement, and an optional participant recordkeeping services ("PRS") agreement. RIA had $158 million in assets as of December 31, 2005. Our service consultants are available to answer your questions about RIA. Please contact us by using the telephone number or addresses listed under "How to reach us - Information on joining RIA" earlier in this prospectus. SUMMARY OF PLAN CHOICES OF RIA RIA is used: o as the exclusive funding vehicle for the assets of an employer plan. Under this option, the annual amount of plan contributions must be at least $10,000. We call this type of plan an "exclusive funding employer plan"; or o as a partial investment funding vehicle for an employer plan. Under this option, the aggregate amount of contributions in the initial participation year must be at least $50,000, and the annual aggregate amount of contributions thereafter must be at least $25,000. We call this type of plan a "partial funding employer plan." We do not offer the guaranteed interest option with a partial funding employer plan. A partial funding agreement with us was required to use this partial funding employer plan. An exclusive funding employer plan may not change its participation basis to that of a partial funding employer plan, or vice versa, unless the underwriting and other requirements referred to above are satisfied and approved by us. We reserve the right to impose higher annual minimums for certain plans. We will give you advance notice of any such changes. You have the choice of using RIA with two types of plans. You may use RIA for: o participant-directed employer plans, which permit participants to allocate contributions and transfer account accumulations among the investment options; or o trustee-directed employer plans, which permit these types of investment decisions to be made only by the employer, a trustee or any named fiduciary or an authorized delegate of the plan. At our sole discretion, a trustee-directed plan may change its participation basis to a participant-directed plan. Making the right choices for your plan depends on your own set of circumstances. We recommend that you review all contracts and trust, participation and related agreements with your legal and tax counsel. HOW TO MAKE CONTRIBUTIONS REGULAR CONTRIBUTIONS. Contributions may be made by check or by wire transfer. All contributions under an employer plan should be sent to the address under "For contributions checks only" in "Information once you join RIA" earlier in this prospectus. All contributions made by check must be drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. Third-party checks are not acceptable, except for rollover contributions, tax-free exchanges or trustee checks that involve no refund. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. Contributions are normally credited on the business day that we receive them. Contributions are only accepted from the employer or plan trustee. There is no minimum amount for each contribution where employer plan contributions are made on a basis more frequent than annually. The total amount of contributions under an employer plan is limited by law. See "Tax information" later in this prospectus. To make a rollover or transfer to an existing RIA Plan, funds must be in cash. Therefore, any assets accumulated under another existing plan will have to be liquidated for cash. SELECTING INVESTMENT OPTIONS You can select from the investment options available under the contracts. The maximum number of active options you may select at any time is 25. Plan participant choices will be limited to the investment options selected. If the Plan is intended to comply with the requirements of ERISA Section 404(c), the employer or the plan trustee is responsible for making sure that the investment options chosen constitute a broad range of investment choices as required by the Department of Labor ("DOL") Section 404(c) regulations. Generally, for participant-directed plans, if you intend for your plan to comply with ERISA Section 404(c), you should, among other things: o select the EQ/Money Market Fund if you select any of the EQ/Alliance Intermediate Government Securities, EQ/Alliance Quality Bond or AXA Premier VIP High Yield Funds; or o select the guaranteed interest option if you do not select any of the EQ/Money Market, EQ/Alliance Intermediate Government Securities, EQ/Alliance Quality Bond, AXA Premier VIP High Yield or EQ/Alliance Small Cap Growth Funds. RIA 27 If you select any of the EQ/Money Market, Alliance Bond, EQ/Alliance Intermediate Government Securities, EQ/Alliance Quality Bond or AXA Premier VIP High Yield Funds and the guaranteed interest option, certain restrictions will apply to transfers out of the guaranteed interest option. The Alliance Bond Fund is available only to employer plans that signed an agreement to participate in that Fund through the RIA annuity contract prior to June 1, 1994, and, as described above, special transfer rules apply for these employer plans. If you add any of the Funds of Separate Account No. 66, the Alliance Bond Fund will no longer be subject to any transfer restrictions. However, transfers out of the guaranteed interest option will be subject to certain restrictions. ALLOCATING PROGRAM CONTRIBUTIONS We allocate contributions to the investment options in accordance with the allocation instructions provided to us by the plan trustee or the individual who the plan trustee has previously authorized in writing. Allocations may be made by dollar amounts or in any whole number percentages that total 100%. Allocation changes may be made without charge, but may be subject to employer plan provisions that may limit or disallow such movements. 28 RIA 6. Distributions -------------------------------------------------------------------------------- Keep in mind two sets of rules when considering distributions or withdrawals from RIA. The first are rules and procedures that apply to the investment options, exclusive of the provisions of your plan. We discuss those in this section. The second are rules specific to your plan, which are not described here. Moreover, distribution and benefit payment options under a tax qualified retirement plan are subject to complicated legal requirements. A general explanation of the federal income tax treatment of distributions and benefit payment options is provided in "Tax information" later in this prospectus and the SAI. The participant should discuss his or her options with a qualified financial adviser. Our service consultants also can be of assistance. Certain plan distributions may be subject to a contingent withdrawal charge, federal income tax, and penalty taxes. See "Charges and expenses" and "Tax information" later in this prospectus. AMOUNTS IN THE FUNDS. These are generally available for distribution at any time, subject to the provisions of your plan. Distributions from the Alliance Bond, Alliance Common Stock, Alliance Mid Cap Growth and Alliance Balanced Funds are permitted at any time. Distributions from remaining Funds are permitted at any time except if there is any delay in redemptions from the corresponding portfolio of each Trust, as applicable. See "When we pay proceeds" later in this prospectus. AMOUNTS IN THE GUARANTEED INTEREST OPTION. These are generally available for distribution at any time, subject to the provisions of your plan. A deferred payout provision, however, applies to trustee-directed employer plans which are terminating their RIA contract. Under that provision, we can defer payment of the employer plan balance held in the guaranteed interest option, less the contingent withdrawal charge, by paying out the balance in six installments over five years. During the deferred payout period, we credit the balances upon which we defer payment with the current interest rate declared for each year. We also continue to deduct the ongoing operations fee monthly from the balance during the deferred payout period. When we impose the deferred payout provision, any trustee-directed employer plan benefits becoming due during the deferred payout period will not be paid from the employer plan balance in the guaranteed interest option. If, however, sufficient funds are available, the benefits would be paid from the new funding vehicle for the trustee-directed employer plan. Participant-directed employer plans are not subject to the deferred payout provision. Distributions 29 ILLUSTRATION OF DEFERRED PAYOUT PROVISION
Transaction Date End of Year 1 End of Year 2 ------------------------------------------------------------------------------------------------------- guaranteed interest option Balance 1 Balance 2 Plan Assets + Interest + Interest - Withdrawal Charge - Operations Fee - Operations Fee -------------------------- -------------------------- -------------------------- Distribution Amount 1 Distribution Amount 2 Distribution Amount 3 Dist. Amt. 1 = 1st Payment Dist. Amt. 2 = 2nd Payment Dist. Amt. 3 = 3rd Payment --------------------------- ---------------- ---------------- 6 5 4 Dist. Amount 1 Dist. Amount 2 Dist. Amount 3 - 1st Payment - 2nd Payment - 3rd Payment --------------------------- ---------------- ---------------- Balance 1 --> Balance --> Balance --> End of Year 3 End of Year 4 End of Year 5 --------------------------------------------------------------------------------------------- Balance 3 Balance 4 Balance 5 + Interest + Interest + Interest - Operations Fee - Operations Fee - Operations Fee -------------------------- -------------------------- -------------------------- Distribution Amount 4 Distribution Amount 5 Final Distribution Dist. Amt. 4 = 4th Payment Dist. Amt. 5 = 5th Payment ---------------- ---------------- 3 2 Dist. Amount 4 Dist. Amount 5 - 4th Payment - 5th Payment ---------------- ---------------- Balance --> Balance -->
30 Distributions 7. Optional participant recordkeeping services -------------------------------------------------------------------------------- SERVICES PROVIDED. If you elected the PRS program, we: o establish an individual participant account for each participant covered by your plan based on data you provide; o receive and deposit contributions on behalf of participants to individual participant accounts; o maintain records reflecting, for each participant, contributions, transfers, loan transactions, withdrawals and investment experience and interest accrued, as applicable, on an individual participant's proportionate values in the plan; o provide to you individual participant's reports reflecting the activity in the individual participant's proportionate interest in the plan; and o process transfers and distributions of the participant's portion of his or her share of the employer plan assets among the investment options as you instruct. You are responsible for providing AXA Equitable with required information and for complying with our procedures relating to the PRS program. We will not be liable for errors in recordkeeping if the information you provide is not provided on a timely basis or is incorrect. The plan administrator retains full responsibility for the income tax withholding and reporting requirements including required notices to the plan participants, as set forth in the federal income tax rules and applicable Treasury Regulations. INVESTMENT OPTIONS. You must include the guaranteed interest option in the investment options if you select PRS. FEES. We charge an annual fee of $25 per active participant paid in twelve equal monthly installments of $2.08. We deduct the fee from the amounts attributable to each individual participant at the end of each month by means of a reduction of units or a cash withdrawal from the guaranteed interest option. We retain the right to change the fee upon 30 days' notice to the employer. See "Charges and expenses" later in this prospectus. ENROLLMENT. Enrollment of your plan in PRS is no longer available. Optional participant recordkeeping services 31 8. Charges and expenses -------------------------------------------------------------------------------- You will incur two general types of charges under RIA: (1) Charges reflected as reductions in the unit values of the Funds which are recorded as expenses of the Fund. These charges apply to all amounts invested in RIA, including installment payout option payments. (2) Charges stated as a defined percentage or fixed dollar amount and deducted by reducing the number of units in the appropriate Funds and the dollars in the guaranteed interest option. We make no deduction from your contributions for sales expenses. CHARGES REFLECTED IN THE UNIT VALUES INVESTMENT MANAGEMENT AND ACCOUNTING FEES The computation of unit values for the Alliance Bond, Alliance Common Stock, Alliance Mid Cap Growth and Alliance Balanced Funds reflects fees we charge for investment management and accounting. We receive fees for investment management and financial accounting services we provide for these Funds, as well as a portion of our related administrative costs. This fee is charged daily at an effective annual rate of .50% of the net assets of the Alliance Bond, Alliance Common Stock, Alliance Mid Cap Growth and Alliance Balanced Funds. ADMINISTRATIVE CHARGE FOR CERTAIN OF THE FUNDS OF SEPARATE ACCOUNT NO. 66 We make a daily charge at an annual rate of 0.05% of the assets invested in certain of the Funds of Separate Account No. 66 as indicated under the "Fee Table" earlier in this prospectus. The charge is designed to reimburse us for our costs in providing administrative services in connection with the contracts. INDIRECT EXPENSES BORNE BY THE FUNDS ANNUAL EXPENSES OF THE TRUSTS. The Funds that invest in portfolios of the Trusts are indirectly subject to investment advisory and other expenses charged against assets of their corresponding portfolios. These expenses are described in the prospectuses for the Trusts. CHARGES WHICH REDUCE THE NUMBER OF UNITS CONTINGENT WITHDRAWAL CHARGE We may impose a contingent withdrawal charge ("CWC") against withdrawals made from any of the Funds or the guaranteed interest option at any time up to and including the ninth anniversary of the date on which the employer plan began its participation in RIA. The CWC is designed to recover the unamortized sales and promotion expenses and initial enrollment expenses incurred by us. We will not apply a CWC against amounts withdrawn for the purpose of making benefit distribution payments unless such withdrawals are made (i) on or after the date of discontinuance of an employer plan's participation in RIA or (ii) as a result of a full or partial termination, within the meaning of applicable Internal Revenue Service ("IRS") or court interpretations. We will apply a CWC against amounts withdrawn for purposes of making benefit payments to participants who terminated employment either voluntarily or involuntarily, but only when such terminations are attributable to (i) the employer's merger with another company, (ii) the sale of the employer or (iii) the bankruptcy of the employer which leads to the full or partial termination of the plan or the discontinuance of the employer plan's participation in RIA. We do not apply a CWC on transfers between the investment options. However, we do apply a CWC to withdrawals from RIA for the purpose of transferring to another funding vehicle under the employer plan, unless an officer of AXA Equitable agrees, in writing, to waive this charge. We do not consider withdrawals from RIA for the purpose of paying plan expenses or the premium on a life insurance policy, including one held under the employer plan, to be in-service withdrawals or any other type of benefit distribution. These withdrawals are subject to the CWC. The amount of any CWC is determined in accordance with the rate schedule set forth below. We include outstanding loan balances in the plan's assets for purposes of assessing the CWC. -------------------------------------------------------------------------------- Withdrawal in Participation Years Contingent Withdrawal Charge -------------------------------------------------------------------------------- 1 or 2 6% of Amount Withdrawn 3 or 4 5% 5 or 6 4% 7 or 8 3% 9 2% 10 and later 0% -------------------------------------------------------------------------------- Benefit distribution payments are those payments that become payable with respect to participants under the terms of the employer plan as follows: 1. as the result of the retirement, death or disability of a participant; 2. as the result of a participant's separation from service as defined under Section 402(d)(4)(A) of the Code; 3. in connection with a loan transaction, if the loan is repaid in accordance with its terms; 4. as a minimum distribution pursuant to Section 401(a)(9) of the Code; 5. as a hardship withdrawal pursuant to Section 401(k) of the Code; 6. pursuant to a qualified domestic relations order ("QDRO") under Section 414(p) of the Code, but only if the QDRO specifically requires that the plan administrator withdraw amounts for payment to an alternate payee; 7. as a result of an in-service withdrawal attributable to the after-tax contributions of a participant; or 32 Charges and expenses 8. as a result of an in-service withdrawal from a profit-sharing plan after meeting a minimum number of years of service and/or participation in the plan, and the attainment of a minimum age specified in the plan. Prior to any withdrawal from RIA for benefit distribution purposes, AXA Equitable reserves the right to receive from the employer and/or trustees of the plan, evidence satisfactory to it that such benefit distribution conforms to at least one of the types mentioned above. ONGOING OPERATIONS FEE The ongoing operations fee is based on the combined net balances (including any outstanding loan balance) of an employer plan in the investment options at the close of business on the last business day of each month. The amount of the ongoing operations fee is determined under the rate schedule that applies to the employer plan. Unless you make other arrangements, we deduct the charge from employer plan balances at the close of business on the last business day of the following month. Set forth below is the rate schedule for employer plans which adopted RIA after February 9, 1986. Information concerning the rate schedule for employer plans that adopted RIA on or before February 9, 1986 is included in the SAI under "Additional information about RIA." -------------------------------------------------------------------------------- Combined balance Monthly of investment options Rate -------------------------------------------------------------------------------- First $ 150,000 1/12 of 1.25% Next $ 350,000 1/12 of 1.00% Next $ 500,000 1/12 of 0.75% Over $1,000,000 1/12 of 0.50% -------------------------------------------------------------------------------- The ongoing operations fee is designed to cover such expenses as contract underwriting and issuance for employer plans, employer plan-level recordkeeping, processing transactions and benefit distributions, administratively maintaining the investment options, commissions, promotion of RIA, administrative costs (including certain enrollment and other servicing costs), systems development, legal and technical support, product and financial planning and part of our general overhead expenses. Administrative costs and overhead expenses include such items as salaries, rent, postage, telephone, travel, office equipment and stationery, and legal, actuarial and accounting fees. PARTICIPANT RECORDKEEPING SERVICES CHARGE The PRS is an optional service. If you elected this service, we charge a per participant annual fee of $25. We deduct this fee on a monthly basis at the rate of $2.08 per participant. We determine the amount of the fee for an employer plan at the close of business on the last business day of each month based on the number of participants enrolled with us at that time. Unless you make other arrangements, we deduct this fee from the balances attributable to each participant in the investment options at the close of business on the last business day of the following month. The PRS fee covers expenses incurred for establishing and maintaining individual records, issuing statements and reports for individual employees and employer plans, and processing individual transactions and benefit distributions. We are not responsible for reconciling participants' individual account balances with the entire amount of the employer plan where we do not maintain individual account balances. LOAN FEE We charge a loan fee in an amount equal to 1% of the amount withdrawn as loan principal on the date the plan loan is made. OTHER BILLING ARRANGEMENTS The ongoing operations and participant recordkeeping services fees can be paid by a direct billing arrangement we have with the employer subject to a written agreement between AXA Equitable and the employer. INDIVIDUAL ANNUITY CHARGES ANNUITY ADMINISTRATIVE CHARGE. If a participant elects an annuity payout option, we deduct a $175 charge from the amount used to purchase the annuity. This charge reimburses us for administrative expenses associated with processing the application for the annuity and issuing each month's annuity payment. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES. We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed by us varies by state and ranges from 0% to 1% (1% in Puerto Rico). GENERAL INFORMATION ON FEES AND CHARGES We reserve the right (1) to change from time to time the charges and fees described in this prospectus upon prior notice to the employer and (2) to establish separate fee schedules for requested non-routine administrative services and for newly scheduled services not presently contemplated under the contracts. Charges and expenses 33 9. Tax information -------------------------------------------------------------------------------- In this section, we briefly outline current federal income tax rules relating to the adoption of the program, contributions to the program and distributions to participants under qualified retirement plans. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. Employer retirement plans that may qualify for tax-favored treatment are governed by the provisions of the Code and ERISA. The Code is administered by the IRS. ERISA is administered primarily by the DOL. Provisions of the Code and ERISA include requirements for various features including: o participation, vesting and funding; o nondiscrimination; o limits on contributions and benefits; o distributions; o penalties; o duties of fiduciaries; o prohibited transactions; and o withholding, reporting and disclosure. It is the responsibility of the employer, plan trustee and plan administrator to satisfy the requirements of the Code and ERISA. This prospectus does not provide detailed tax or ERISA information. The following discussion briefly outlines the Code provisions relating to contributions to and distributions from certain tax-qualified retirement plans, although some information on other provisions is also provided. Various tax disadvantages, including penalties, may result from actions that conflict with requirements of the Code or ERISA, and regulations or other interpretations thereof. In addition, federal tax laws and ERISA are continually under review by the Congress, and any changes in those laws, or in the regulations pertaining to those laws, may affect the tax treatment of amounts contributed to tax-qualified retirement plans or the legality of fiduciary actions under ERISA. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect annuity contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of an annuity contract. For example, the President's Advisory Panel on Federal Tax Reform recently announced its tax reform options, which could make sweeping changes to many longstanding tax rules. Among the proposed options are new tax-favored savings accounts which would replace many existing qualified plan arrangements and would eliminate certain tax benefits currently available to nonqualified annuity contracts. We cannot predict, what, if any, legislation will actually be proposed or enacted based on these options. Certain tax advantages of tax-qualified retirement plans may not be available under certain state and local tax laws. This outline does not discuss the effect of any state or local tax laws. It also does not discuss the effect of federal estate and gift tax laws (or state and local estate, inheritance and other similar tax laws). This outline assumes that the participant does not participate in any other qualified retirement plan. Finally, it should be noted that many tax consequences depend on the particular jurisdiction or circumstances of a participant or beneficiary. The provisions of the Code and ERISA are highly complex. For complete information on these provisions, as well as all other federal, state, local and other tax considerations, qualified legal and tax advisers should be consulted. President Bush signed the Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became effective on January 1, 2002, and are phased in during the first decade of the twenty-first century. In the absence of future legislation, all of the amendments made by EGTRRA will no longer apply after December 31, 2010, and the law in effect in 2001 will apply again. In general, EGTRRA liberalizes contributions that can be made to all types of tax-favored retirement plans. In addition to increasing amounts that can be contributed and permitting individuals over age 50 to make additional contributions, EGTRRA also permits rollover contributions to be made between different types of tax favored retirement plans. Please discuss with your tax adviser how EGTRRA affects your personal financial situation. We cannot provide detailed information on all tax aspects of the plans or contracts. Moreover, the tax aspects that apply to a particular person's plan or contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Rights or values under plans or contracts or payments under the contracts, for example, amounts due to beneficiaries, may be subject to gift or estate taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Annuity contracts can be purchased in connection with retirement plans qualified under Code Section 401. You should be aware that the funding vehicle for a qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, one should consider the annuity's features and benefits, such as the selection of investment funds and guaranteed interest option and choices of pay-out options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may 34 Tax information vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you select. IMPACT OF TAXES TO AXA EQUITABLE Under existing federal income tax law, no taxes are payable on investment income and capital gains of the Funds that are applied to increase the reserves under the contracts. Accordingly, AXA Equitable does not anticipate that it will incur any federal income tax liability attributable to income allocated to the variable annuity contracts participating in the Funds and it does not currently impose a charge for federal income tax on this income when it computes unit values for the Funds. If changes in federal tax laws or interpretations thereof would result in AXA Equitable being taxed, then AXA Equitable may impose a charge against the Funds (on some or all contracts) to provide for payment of such taxes. CERTAIN RULES APPLICABLE TO PLANS DESIGNED TO COMPLY WITH SECTION 404(C) OF ERISA Section 404(c) of ERISA, and the related DOL regulation, provide that if a plan participant or beneficiary exercises control over the assets in his or her plan account, plan fiduciaries will not be liable for any loss that is the direct and necessary result of the plan participant's or beneficiary's exercise of control. As a result, if the plan complies with Section 404(c) and the DOL regulation thereunder, the plan participant can make and is responsible for the results of his or her own investment decisions. Section 404(c) plans must provide, among other things, that a broad range of investment choices are available to plan participants and beneficiaries and must provide such plan participants and beneficiaries with enough information to make informed investment decisions. Compliance with the Section 404(c) regulation is completely voluntary by the plan sponsor, and the plan sponsor may choose not to comply with Section 404(c). The RIA Program provides employer plans with the broad range of investment choices and information needed in order to meet the requirements of the Section 404(c) regulation. If the plan is intended to be a Section 404(c) plan, it is, however, the plan sponsor's responsibility to see that the requirements of the DOL regulation are met. AXA Equitable and its agents shall not be responsible if a plan fails to meet the requirements of Section 404(c). Tax information 35 10. More information -------------------------------------------------------------------------------- ABOUT CHANGES OR TERMINATIONS AMENDMENTS. The contracts have been amended in the past and we and the trustee under the Master Trust Agreement may agree to amendments in the future. No future change can affect annuity benefits in the course of payment. If certain conditions are met, we may: (1) terminate the offer of any of the investment options and (2) offer new investment options with different terms. We may unilaterally amend or modify the contracts or the Master Retirement Trust without the consent of the employer or plan sponsor, as the case may be, in order to keep the contracts or the Master Retirement Trust in compliance with law. TERMINATION. We can discontinue offering RIA at any time. Discontinuance of RIA would not affect annuities in the course of payment, but we would not accept further contributions. The employer may elect to maintain investment options balances with us to provide annuity benefits in accordance with the terms of the contracts. The employer may elect to discontinue the participation of the employer plan in RIA at any time upon advance written notice to us. We may elect, upon written notice to the employer, to discontinue the participation of the employer plan in RIA if (1) the employer fails to comply with any terms of the Master Retirement Trust, (2) the employer fails to make the required minimum contributions, (3) as may be agreed upon in writing between AXA Equitable and the employer if the plan fails to maintain minimum amounts of Funds invested in RIA, or (4) the employer fails to comply with any representations and warranties made by the employer, trustees or employer plan to AXA Equitable in connection with the employer plan's participation in RIA. At any time on or after the participation of the employer in RIA has been discontinued, we may withdraw the entire amount of the employer plan assets held in the investment options, and pay them to the trustee of the employer plan, subject to our right to defer payout of amounts held in the guaranteed interest option, less any applicable charges and fees and outstanding loan balances. IRS DISQUALIFICATION If your plan is found not to qualify under the Code, we can terminate your participation under RIA. In this event, we will withdraw the employer plan balances from the investment options, less applicable charges and fees and any outstanding loan balances, and pay the amounts to the trustees of the plan. ABOUT THE SEPARATE ACCOUNTS Each Fund is one, or part of one, of our separate accounts. We established the separate accounts under provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our Funds for owners of our variable annuity contracts, including our group annuity contracts. The results of each separate account's operations are accounted for without regard to AXA Equitable's, or any other separate account's, operating results. We are the legal owner of all of the assets in the separate accounts and may withdraw any amounts we have in the separate accounts that exceed our reserves and other liabilities under variable annuity contracts. The amount of some of our obligations under the contracts is based on the assets in the separate accounts. However, the obligations themselves are obligations of AXA Equitable. We reserve the right to take certain actions in connection with our operations and the operations of the Funds as permitted by applicable law. If necessary, we will seek approval by participants in RIA. We established the Alliance Bond Fund in 1981, Alliance Common Stock and Alliance Mid Cap Growth Funds in 1969, and Alliance Balanced Fund in 1979. We established Separate Account No. 66, which holds the other Funds offered under the contract, in 1997. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Because of exclusionary provisions, none of the Funds is subject to regulation under the Investment Company Act of 1940, as amended ("1940 Act"). The Trusts' shares are purchased by Separate Account No. 66. ABOUT THE TRUSTS AXA Premier VIP Trust and EQ Advisors Trust are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. AXA Equitable serves as the investment manager of the Trusts. As such, AXA Equitable oversees the activities of the investment advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those advisers. The Trusts do not impose sales charges or "loads" for buying and selling their shares. All dividends and other distributions on Trust shares are reinvested in full. The Board of Trustees of each Trust may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan relating to class 1B/B shares and other aspects of its operations, appears in the prospectuses for each Trust, which accompany this prospectus, or in their respective SAIs which are available upon request. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the guaranteed interest option, as well as our general obligations. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do 36 More information business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is not registered as an investment company under the Investment Company Act of 1940. The contract is a "covered security" under the federal securities laws. We have been advised that the staff of the SEC has not reviewed the portions of this prospectus that relate to the general account. The disclosure, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. WHEN WE PAY PROCEEDS Ordinarily we will apply proceeds to an annuity and make payments or withdrawals out of the investment options promptly after the date of the transaction. However, we can defer payments, apply proceeds to an annuity and process withdrawals from the Funds for any period during which the New York Stock Exchange is closed for trading, sales of securities are restricted or determination of the fair market value of assets of the Funds is not reasonably practicable because of an emergency. We may also defer withdrawals from the plan in installments in order to protect the interests of the other contract holder in a Fund. WHEN TRANSACTION REQUESTS ARE EFFECTIVE Transaction requests may be made by the authorized person for the employer plan as shown on our records, in written or facsimile form acceptable to us and signed by the employer. All requests will be effective on the business day we receive a properly completed and signed written or facsimile request for a financial transaction at the RIA service office. Transaction requests received after the end of a business day will be processed the next business day. We will honor your properly completed transaction requests received via facsimile only if we receive a properly completed transaction form. The request form must be signed by an individual who the plan trustees have previously authorized in writing. We are not responsible for determining the accuracy of a transmission and are not liable for any consequences, including but not limited to, investment losses and lost investment gains, resulting from a faulty or incomplete transmission. If your request form is not properly completed, we will contact you within 24 hours of our receipt of your facsimile. We will use our best efforts to acknowledge receipt of a facsimile transmission, but our failure to acknowledge or a failure in your receipt of such acknowledgment will not invalidate your transaction request. If you do not receive acknowledgment of your facsimile within 24 hours, contact the RIA service office at the toll free 800 number. VOTING RIGHTS No voting rights apply to any of the separate accounts or to the guaranteed interest option. We do, however, have the right to vote shares of the Trusts held by the Funds. If a Trust holds a meeting of shareholders, we will vote shares of the portfolios of the Trusts allocated to the corresponding Funds in accordance with instructions received from employers, participants or trustees, as the case may be. Shares will be voted in proportion to the voter's interest in the Funds holding the shares as of the record date for the shareholders meeting. We will vote the shares for which no instructions have been received in the same proportion as we vote shares for which we have received instructions. Employers, participants or trustees will receive: (1) periodic reports relating to each Trust and (2) proxy materials, together with a voting instruction form, in connection with shareholder meetings. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's variable annuity and/or life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our policyowners arising out of these arrangements. However, the Board of Trustees or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our policyowners, we will see to it that appropriate action is taken to do so. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in the separate accounts, nor would any of these proceedings be likely to have a material adverse effect upon the separate accounts, our ability to meet our obligations under RIA, or the distribution of group annuity contract interests under RIA. FINANCIAL STATEMENTS The financial statements of Separate Accounts 3, 4, 10, 13, and 66, as well as the consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-967-4560. ABOUT THE TRUSTEE As trustee, JP Morgan Chase Bank serves as a party to the group annuity contracts. It has no responsibility for the administration of RIA or for any distributions or duties under the group annuity contracts. REPORTS WE PROVIDE AND AVAILABLE INFORMATION We send the employer a report each quarter that shows transactions in the investment options during the quarter for the employer plan, the number of units in the Funds credited to the employer plan, the unit values and the balances in all of the investment options as of the end of the quarter. The employer automatically receives a confirmation notice following the processing of a financial investment option transaction. The employer will also receive an annual report and a semiannual report containing financial statements of the Funds and a list of the Funds' or Trust's portfolio securities. As permitted by the SEC's rules, More information 37 we omitted certain portions of the registration statement filed with the SEC from this prospectus and the SAI. You may obtain the omitted information by: (1) requesting a copy of the registration statement from the SEC's principal office in Washington, D.C., and paying prescribed fees, or (2) by accessing the EDGAR Database at the SEC's Web site at www.sec.gov. ACCEPTANCE AND RESPONSIBILITIES The employer or plan sponsor, as the case may be, was solely responsible for determining whether RIA is a suitable funding vehicle and entered into a participation or installation agreement with us. Our duties and responsibilities are limited to those described in this prospectus. Except as explicitly set forth in the PRS program, we do not provide administrative services in connection with an employer plan. In addition, no financial professional or firm operated by a financial professional is authorized to solicit or agree to perform plan administrative services in his capacity as a financial professional. If an employer or trustee engages a financial professional to provide administrative support services to an employer plan, the employer or trustee engages that financial professional as its representative rather than AXA Equitable's. We are not liable to any employer, trustee or employer plan for any damages arising from or in connection with any plan administration services performed or agreed to be performed by a financial professional. ABOUT REGISTERED UNITS This prospectus relates to our offering of units of interest in the Funds that are registered under the 1933 Act. Financial data and other information contained in this prospectus may refer to such "registered units," as offered in the RIA program. We also offer units under RIA to retirement plans maintained by corporations or governmental entities (collectively, "corporate plans"). However, because of an exemption under the 1933 Act, these corporate plan units are not registered under the 1933 Act or covered by this prospectus. ASSIGNMENT AND CREDITORS' CLAIMS Employers and plan participants cannot assign, sell, alienate, discount or pledge as collateral for a loan or other obligation to any party the employer plan balances and rights under RIA, except to the extent allowed by law for a QDRO as that term is defined in the Code. (This reference to a loan does not apply to a loan under RIA.) Proceeds we pay under our contracts cannot be assigned or encumbered by the payee. We will pay all proceeds under our contracts free from the claims of creditors to the extent allowed by law. DISTRIBUTION OF THE CONTRACTS AXA Advisors, LLC ("AXA Advisors"), an affiliate of AXA Equitable and the successor to EQ Financial Consultants, Inc., is the distributor of the contracts and has responsibility for marketing and service functions of the contracts. AXA Advisors is registered with the SEC as a broker-dealer and a member of the National Association of Securities Dealers, Inc. ("NASD") The principal business address of AXA Advisors is 1290 Avenue of the Americas, New York, New York 10104. AXA Advisors also acts as distributor for other AXA Equitable annuity products. As of July 9, 2003 the RIA contract is no longer offered as a funding vehicle to new employer plans; however, we continue to support existing RIA contracts, and new participants may continue to be enrolled under existing RIA plans. The contracts are serviced by financial professionals who are registered representatives of AXA Advisors and its affiliates, who are also licensed insurance agents of AXA Equitable. The offering of units of interest under the contracts is intended to be continuous. AXA Equitable pays sales compensation to AXA Advisors. In general, AXA Advisors will pay all or a portion of the sales compensation it receives from AXA Equitable to individual financial representatives or Selling broker-dealers. Selling broker-dealers will, in turn, pay all or a portion of the compensation they receive from AXA Advisors to individual financial representatives as commissions related to the sale of the contracts. Sales compensation paid to AXA Advisors will generally not exceed 6.0% of the total contributions made under the contracts. AXA Advisors may also pay certain affiliated and/or unaffiliated selling broker-dealers and other financial intermediaries additional compensation for certain services and/or in recognition of certain expenses that may be incurred by them or on their behalf (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or its products on a company and/or product list; sales personnel training; due diligence and related costs; marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a broker-dealer or, in the case of conference support, may be a fixed amount. AXA Advisors may also make fixed payments to broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of selling broker-dealers to promote the sale of AXA Equitable products, AXA Advisors may increase the sales compensation paid to the selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances are made out of AXA Advisors' assets. Not all selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. AXA Advisors receives 12b-1 fees from certain portfolios for providing certain distribution and/or shareholder support services. AXA Advisors or its affiliates may also receive payments from the advisers of the portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the policies and/or the advisers' respective portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." AXA Advisors may provide other forms of compensa- 38 More information tion to its financial professionals, including health and retirement benefits. In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the NASD, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any compensation paid will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable NASD rules and other laws and regulations. COMMISSIONS AND SERVICE FEES WE PAY Financial professionals who assisted in establishing employer plans in RIA and who are providing necessary services (not including recordkeeping services) are entitled to receive commissions and service fees from us as stated above. Such commissions and fees are not in addition to the fees and charges we describe in "Charges and expenses" earlier in this prospectus. Any service fees we pay to financial professionals are contingent upon their providing service satisfactory to us. While the charges and expenses that we receive from a RIA employer plan initially may be less than the commissions and service fees we pay to financial professionals, we expect that over time those charges and expenses we collect will be adequate to cover all of our expenses. Certain retirement plans that use RIA may allow employer plan assets to be used in part to buy life insurance policies rather than applying all of the contributions to RIA. Financial professionals will receive commissions on any such AXA Equitable insurance policies at standard rates. These commissions are subject to regulation by state law and are at rates higher than those applicable to commissions payable for placing an employer plan under RIA. More information 39 Appendix: Condensed financial information -------------------------------------------------------------------------------- These selected per unit data and ratios for the years ended December 31, 2005 through 1995 have been derived from the financial statements audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, in their reports included in the SAI. The financial statements of each of the Funds as well as the consolidated financial statements of AXA Equitable are contained in the SAI. Information is provided for the period that each Fund has been available under RIA, but not longer than ten years. SEPARATE ACCOUNT NO. 13 -- POOLED (ALLIANCE BOND FUND) OF AXA EQUITABLE LIFE INSURANCE COMPANY INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE PERIOD INDICATED AND OTHER SUPPLEMENTARY DATA (NOTES E AND F)
---------------------------------------------------------------------------------------- Year Ended December 31, ---------------------------------------------------------------------------------------- 2005 2004 2003 2002 2001 ---------------------------------------------------------------------------------------- Income $ 3.27 $ 2.98 $ 2.64 $ 2.99 $ 3.88 Expenses (Note B) (0.40) (0.39) (0.39) (0.36) (0.34) ---------------------------------------------------------------------------------------- Net investment income 2.87 2.59 2.25 2.63 3.54 Net realized and unrealized gain (loss) on invest- ments (Note C) (2.05) (0.41) 1.04 1.43 2.16 ---------------------------------------------------------------------------------------- Net increase (decrease) in unit value 0.82 2.18 3.29 4.06 5.70 Alliance Bond Fund unit value (Note A): Beginning of Period 79.38 77.20 73.91 69.85 64.15 ---------------------------------------------------------------------------------------- End of Period $ 80.20 $ 79.38 $ 77.20 $ 73.91 $ 69.85 ======================================================================================== Ratio of expenses to average net assets (Note B) 0.50% 0.50% 0.50% 0.50% 0.50% Ratio of net investment income to average net assets 3.60% 3.32% 2.97% 3.75% 5.28% Number of units outstanding at end of period 0 0 0 0 0 Portfolio turnover rate (Note D) 260% 302% 427% 458% 212% ======================================================================================== ---------------------------------------------------------------------------------------- Year Ended December 31, ---------------------------------------------------------------------------------------- 2000 1999 1998 1997 1996 ---------------------------------------------------------------------------------------- Income $ 3.77 $ 3.27 $ 3.25 $ 3.29 $ 3.09 Expenses (Note B) (0.29) (0.28) (0.28) (0.25) (0.25) ---------------------------------------------------------------------------------------- Net investment income 3.48 2.99 2.97 3.04 2.84 Net realized and unrealized gain (loss) on invest- ments (Note C) 2.47 (3.20) 1.35 0.79 (1.49) ---------------------------------------------------------------------------------------- Net increase (decrease) in unit value 5.95 (0.21) 4.32 3.83 1.35 Alliance Bond Fund unit value (Note A): Beginning of Period 58.20 58.41 54.09 50.26 48.91 ---------------------------------------------------------------------------------------- End of Period $ 64.15 $ 58.20 $ 58.41 $ 54.09 $ 50.26 ======================================================================================== Ratio of expenses to average net assets (Note B) 0.50% 0.50% 0.50% 0.50% 0.50% Ratio of net investment income to average net assets 5.81% 5.13% 5.26% 5.89% 5.81% Number of units outstanding at end of period 0 264 3,003 2,021 2,698 Portfolio turnover rate (Note D) 337% 88% 133% 188% 137% ========================================================================================
See Notes following tables. I-1 Appendix: Condensed financial information SEPARATE ACCOUNT NO. 10 -- POOLED (ALLIANCE BALANCED FUND) OF AXA EQUITABLE LIFE INSURANCE COMPANY INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE PERIODS INDICATED AND OTHER SUPPLEMENTARY DATA (NOTE E)
----------------------------------------------------------------------------------------------------- Year Ended December 31, ----------------------------------------------------------------------------------------------------- 2005 2004 2003 2002 2001 ----------------------------------------------------------------------------------------------------- Income $ 4.71 $ 3.73 $ 3.38 $ 4.23 $ 5.32 Expenses (Note B) (0.92) (0.85) (0.76) (0.73) (0.79) ----------------------------------------------------------------------------------------------------- Net investment income 3.79 2.88 2.62 3.50 4.53 Net realized and unrealized gain (loss) on invest- ments (Note C) 7.76 11.51 21.84 (16.02) (11.65) ----------------------------------------------------------------------------------------------------- Net increase (decrease) in unit value 11.55 14.39 24.46 (12.52) (7.12) Alliance Balanced Fund unit value (Note A): Beginning of Period 180.09 165.70 141.24 153.76 160.88 ----------------------------------------------------------------------------------------------------- End of Period $ 191.64 $ 180.09 $ 165.70 $ 141.24 $ 153.76 ===================================================================================================== Ratio of expenses to average net assets (Note B) 0.50% 0.50% 0.50% 0.50% 0.50% Ratio of net investment income to average net assets 2.07% 2.19% 1.74% 2.39% 2.93% Number of units outstanding at end of period 6,805 7,241 7,314 8,071 6,834 Portfolio turnover rate (Note D) 211% 283% 339% 288% 168% ===================================================================================================== ------------------------------------------------------------------------------------------------- Year Ended December 31, ------------------------------------------------------------------------------------------------- 2000 1999 1998 1997 1996 ------------------------------------------------------------------------------------------------- Income $ 5.89 $ 5.05 $ 4.80 $ 4.41 $ 3.60 Expenses (Note B) (0.84) (0.76) (0.66) (0.56) (0.50) ------------------------------------------------------------------------------------------------- Net investment income 5.05 4.29 4.14 3.85 3.10 Net realized and unrealized gain (loss) on invest- ments (Note C) (8.98) 17.51 19.07 10.33 7.66 ------------------------------------------------------------------------------------------------- Net increase (decrease) in unit value (3.93) 21.80 23.21 14.18 10.76 Alliance Balanced Fund unit value (Note A): Beginning of Period 164.81 143.01 119.80 105.62 94.86 ------------------------------------------------------------------------------------------------- End of Period $ 160.88 $ 164.81 $ 143.01 $ 119.80 $ 105.62 ================================================================================================= Ratio of expenses to average net assets (Note B) 0.50% 0.50% 0.50% 0.50% 0.50% Ratio of net investment income to average net assets 3.06% 2.88% 3.19% 3.42% 3.13% Number of units outstanding at end of period 9,759 11,870 29,340 38,304 52,080 Portfolio turnover rate (Note D) 145% 95% 89% 165% 177% =================================================================================================
See Notes following tables. Appendix: Condensed financial information I-2 SEPARATE ACCOUNT NO. 4 -- POOLED (ALLIANCE COMMON STOCK FUND) OF AXA EQUITABLE LIFE INSURANCE COMPANY INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE PERIODS INDICATED AND OTHER SUPPLEMENTARY DATA (NOTE E)
------------------------------------------------------------------------------------------------------ Year Ended December 31, ------------------------------------------------------------------------------------------------------ 2005 2004 2003 2002 2001 ------------------------------------------------------------------------------------------------------ Income $ 3.28 $ 2.89 $ 2.37 $ 2.07 $ 3.00 Expenses (Note B) (3.56) (3.19) (2.55) (2.58) (3.29) ------------------------------------------------------------------------------------------------------ Net investment income (loss) (0.28) (0.30) (0.18) (0.51) (0.29) Net realized and unrealized gain (loss) on invest- ments (Note C) 84.97 93.14 159.26 (167.15) (137.35) ------------------------------------------------------------------------------------------------------ Net increase (decrease) in unit value 84.69 92.84 159.08 (167.66) (137.64) Alliance Common Stock Fund unit value (Note A): Beginning of Period 695.74 602.90 443.82 611.48 749.12 ------------------------------------------------------------------------------------------------------ End of Period $ 780.43 $ 695.74 $ 602.90 $ 443.82 $ 611.48 ====================================================================================================== Ratio of expenses to average net assets (Note B) 0.50% 0.50% 0.50% 0.50% 0.50% Ratio of net investment income (loss) to average net assets (0.04)% (0.05)% (0.03)% (0.10)% (0.04)% Number of units outstanding at end of period 2,499 2,912 3,370 4,305 5,420 Portfolio turnover rate (Note D) 49% 60% 51% 39% 132% ====================================================================================================== -------------------------------------------------------------------------------------------------- Year Ended December 31, -------------------------------------------------------------------------------------------------- 2000 1999 1998 1997 1996 -------------------------------------------------------------------------------------------------- Income $ 3.61 $ 4.02 $ 3.57 $ 3.39 $ 2.99 Expenses (Note B) (4.02) (3.74) (3.38) (3.11) (2.51) -------------------------------------------------------------------------------------------------- Net investment income (loss) (0.41) 0.28 0.19 0.28 0.48 Net realized and unrealized gain (loss) on invest- ments (Note C) (149.19) 233.22 (18.53) 144.74 80.65 -------------------------------------------------------------------------------------------------- Net increase (decrease) in unit value (149.60) 233.50 (18.34) 145.02 81.13 Alliance Common Stock Fund unit value (Note A): Beginning of Period 898.72 665.22 683.56 538.54 457.41 -------------------------------------------------------------------------------------------------- End of Period $ 749.12 $ 898.72 $ 665.22 $ 683.56 $ 538.54 ================================================================================================== Ratio of expenses to average net assets (Note B) 0.50% 0.50% 0.50% 0.50% 0.50% Ratio of net investment income (loss) to average net assets (0.05)% 0.04% 0.03% 0.05% 0.10% Number of units outstanding at end of period 7,195 10,056 17,216 21,142 24,332 Portfolio turnover rate (Note D) 48% 72% 71% 62% 105% ==================================================================================================
See Notes following tables. I-3 Appendix: Condensed financial information SEPARATE ACCOUNT NO. 3 -- POOLED (ALLIANCE MID CAP GROWTH FUND) OF AXA EQUITABLE LIFE INSURANCE COMPANY INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE PERIODS INDICATED AND OTHER SUPPLEMENTARY DATA (NOTE E)
------------------------------------------------------------------------------------------------------ Year Ended December 31, ------------------------------------------------------------------------------------------------------ 2005 2004 2003 2002 2001 ------------------------------------------------------------------------------------------------------ Income $ 0.26 $ 0.29 $ 0.42 $ 0.36 $ 0.80 Expenses (Note B) (1.17) (1.08) (0.78) (0.69) (0.89) ------------------------------------------------------------------------------------------------------ Net investment income (loss) (0.91) (0.79) (0.36) (0.33) (0.09) Net realized and unrealized gain (loss) on invest- ments (Note C) 18.33 41.07 82.82 (49.92) (36.98) ------------------------------------------------------------------------------------------------------ Net increase (decrease) in unit value 17.42 40.28 82.46 (50.25) (37.07) Alliance Mid Cap Growth Fund unit value (Note A): Beginning of Period 243.18 202.90 120.44 170.69 207.76 ------------------------------------------------------------------------------------------------------ End of Period $ 260.60 $ 243.18 $ 202.90 $ 120.44 $ 170.69 ====================================================================================================== Ratio of expenses to average net assets (Note B) 0.50% 0.50% 0.50% 0.50% 0.50% Ratio of net investment income (loss) to average net assets (0.39)% (0.37)% (0.23)% (0.24)% (0.05)% Number of units outstanding at end of period 3,819 4,086 4,858 4,909 5,338 Portfolio turnover rate (Note D) 102% 134% 113% 161% 200% ====================================================================================================== -------------------------------------------------------------------------------------------------- Year Ended December 31, -------------------------------------------------------------------------------------------------- 2000 1999 1998 1997 1996 -------------------------------------------------------------------------------------------------- Income $ 1.70 $ 1.61 $ 1.42 $ 1.08 $ 1.33 Expenses (Note B) (1.15) (1.06) (1.13) (1.13) (0.98) -------------------------------------------------------------------------------------------------- Net investment income (loss) 0.55 0.55 0.29 (0.05) 0.35 Net realized and unrealized gain (loss) on invest- ments (Note C) (31.20) 34.80 (31.58) 25.34 38.04 -------------------------------------------------------------------------------------------------- Net increase (decrease) in unit value (30.65) 35.35 (31.29) 25.29 38.39 Alliance Mid Cap Growth Fund unit value (Note A): Beginning of Period 238.41 203.06 234.35 209.06 170.67 -------------------------------------------------------------------------------------------------- End of Period $ 207.76 $ 238.41 $ 203.06 $ 234.35 $ 209.06 ================================================================================================== Ratio of expenses to average net assets (Note B) 0.50% 0.50% 0.50% 0.50% 0.50% Ratio of net investment income (loss) to average net assets 0.24% 0.27% 0.13% (0.02) 0.18% Number of units outstanding at end of period 7,276 10,300 21,322 27,762 26,777 Portfolio turnover rate (Note D) 136% 108% 195% 176% 118% ==================================================================================================
See Notes following tables. Appendix: Condensed financial information I-4 Notes: A. The values for a registered Alliance Bond Fund, Alliance Balanced Fund, Alliance Common Stock Fund and Alliance Mid Cap Growth Fund unit on May 1, 1992, January 23, 1985, April 8, 1985 and July 7, 1986, the first date on which payments were allocated to purchase registered units in each Fund, were $36.35, $28.07, $84.15 and $44.82, respectively. B. Certain expenses under RIA are borne directly by employer plans participating in RIA. Accordingly, those charges and fees discussed in "Charges and expenses" earlier in this prospectus, are not included above and did not affect the Fund unit values. Those charges and fees are recovered by AXA Equitable through an appropriate reduction in the number of units credited to each employer plan participating in the Fund unless the charges and fees are billed directly to and paid by the employer. The dollar amount recovered is included under the caption "For Contributions and Withdrawals" as administrative fees and asset management fees in the Statement of Changes in Net Assets for each Fund, which appear in the Financial Statements in the SAI. As of June 1, 1994, the annual investment management and financial accounting fee is deducted from the assets of the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds and is reflected in the computation of their unit values. If all charges and fees had been made directly against employer plan assets in the Funds and had been reflected in the computation of Fund unit value, RIA registered unit expenses would have amounted to $1.19, $2.94, $11.28 and $3.64 for the year ended December 31, 2005 on a per unit basis for the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds, respectively. For the same reporting periods, the ratio of expenses to average net assets attributable to registered units would have been (on an annualized basis), 1.50%, 1.61%, 1.59% and 1.55% for the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds, respectively. (See Note F.) C. See Note 2 to Financial Statements of Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 (Pooled) which appear in the SAI. D. The portfolio turnover rate excludes all short-term U.S. Government securities and all other securities whose maturities at the time of acquisition were one year or less. The rate stated is the annual turnover rate for the entire Separate Account Nos. 13 -- Pooled, 10 -- Pooled, 4 -- Pooled and 3 -- Pooled. E. Income, expenses, gains and losses shown above pertain only to employer plans' accumulations attributable to RIA registered units. Other plans and trusts also participate in Separate Account Nos. 13 -- Pooled, 10 -- Pooled, 4 -- Pooled and 3 -- Pooled and may have operating results and other supplementary data different from those shown above. F. Because contractholders withdrew their participating interest in Separate Account No. 13 during March of 2000, the per unit data and ratios shown are hypothetical for these registered units. However, the per unit data and ratios developed are based upon actual values for non-registered units of Separate Account No. 13, which carry fees and expenses identical to those imposed upon registered units of the Separate Account. I-5 Appendix: Condensed financial information SEPARATE ACCOUNT NO. 66 (POOLED) UNIT VALUES AND NUMBER OF REGISTERED UNITS OUTSTANDING
------------------------------------------------------------------------------------------------ EQ/Alliance AXA Premier EQ/Alliance Intermediate AXA Premier VIP Technol- Growth Government VIP High ogy and Income Securities Yield Fund Fund Fund ------------------------------------------------------------------------------------------------ Unit value as of: December 31, 1995 $ 118.64 -- $ 123.78 $ 112.07 ------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 1995 40 -- 1,323 248 ------------------------------------------------------------------------------------------------ Unit value as of: December 31, 1996 $ 145.72 -- $ 148.57 $ 116.24 ------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 1996 69 -- 2,078 593 ------------------------------------------------------------------------------------------------ Unit value as of: December 31, 1997 $ 172.55 -- $ 188.22 $ 124.66 ------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 1997 1,414 -- 6,083 783 ------------------------------------------------------------------------------------------------ Unit value as of: December 31, 1998 $ 163.58 -- $ 227.38 $ 134.24 ------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 1998 259 -- 6,500 1,110 ------------------------------------------------------------------------------------------------ Unit value as of: December 31, 1999 $ 158.02 -- $ 269.68 $ 134.36 ------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 1999 187 -- 6,182 1,419 ------------------------------------------------------------------------------------------------ Unit value as of: December 31, 2000 $ 144.28 -- $ 293.68 $ 146.61 ------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 2000 414 -- 2,424 -- ------------------------------------------------------------------------------------------------ Unit value as of: December 31, 2001 $ 145.57 -- $ 289.75 $ 158.49 ------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 2001 464 -- 2,862 -- ------------------------------------------------------------------------------------------------ Unit value as of: December 31, 2002 $ 141.56 -- $ 228.60 $ 172.44 ------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 2002 156 -- 2,649 -- ------------------------------------------------------------------------------------------------ Unit value as of: December 31, 2003 $ 173.86 -- $ 298.75 $ 176.49 ------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 2003 143 -- 2,354 -- ------------------------------------------------------------------------------------------------ Unit value as of: December 31, 2004 $ 189.31 $ 109.49 $ 336.45 $ 180.27 ------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 2004 158 367 1,951 -- ------------------------------------------------------------------------------------------------ Unit value as of: December 31,2005 $ 195.49 $ 121.82 $ 355.66 $ 182.87 ------------------------------------------------------------------------------------------------ Number of units outstanding at December 31,2005 22 437 1,793 -- ------------------------------------------------------------------------------------------------ ---------------------------------------------------------------------------------------------- EQ/Alliance EQ/Allianc EQ/Alliance EQ/Alliance Quality Small Cap International Large Cap Bond Growth Fund Growth Fund Fund ---------------------------------------------------------------------------------------------- Unit value as of: December 31, 1995 $ 104.60 -- $ 116.76 -- ---------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 1995 -- -- 52 -- ---------------------------------------------------------------------------------------------- Unit value as of: December 31, 1996 $ 114.80 -- $ 122.96 -- ---------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 1996 853 -- -- -- ---------------------------------------------------------------------------------------------- Unit value as of: December 31, 1997 $ 111.25 -- $ 134.14 $ 114.18 ---------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 1997 1,531 -- 270 2,235 ---------------------------------------------------------------------------------------------- Unit value as of: December 31, 1998 $ 122.93 -- $ 145.72 $ 109.25 ---------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 1998 1,659 -- 1,038 1,625 ---------------------------------------------------------------------------------------------- Unit value as of: December 31, 1999 $ 169.30 $ 113.69 $ 142.73 $ 139.67 ---------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 1999 1,302 94 4,298 1,064 ---------------------------------------------------------------------------------------------- Unit value as of: December 31, 2000 $ 130.25 $ 92.79 $ 159.04 $ 159.12 ---------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 2000 1,522 1,017 4,295 1,166 ---------------------------------------------------------------------------------------------- Unit value as of: December 31, 2001 $ 100.42 $ 70.55 $ 172.14 $ 138.34 ---------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 2001 1,519 1,220 3,094 475 ---------------------------------------------------------------------------------------------- Unit value as of: December 31, 2002 $ 90.42 $ 48.57 $ 185.72 $ 96.68 ---------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 2002 3,854 1,226 1,262 593 ---------------------------------------------------------------------------------------------- Unit value as of: December 31, 2003 $ 122.39 $ 59.84 $ 192.69 $ 136.53 ---------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 2003 4,074 480 1,014 365 ---------------------------------------------------------------------------------------------- Unit value as of: December 31, 2004 $ 144.93 $ 64.86 $ 200.31 $ 155.93 ---------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 2004 3,017 622 1,176 373 ---------------------------------------------------------------------------------------------- Unit value as of: December 31,2005 $ 167.42 $ 74.54 $ 204.72 $ 174.22 ---------------------------------------------------------------------------------------------- Number of units outstanding at December 31,2005 2,750 710 1,319 99 ----------------------------------------------------------------------------------------------
Appendix: Condensed financial information I-6 SEPARATE ACCOUNT NO. 66 (POOLED) UNIT VALUES AND NUMBER OF REGISTERED UNITS OUTSTANDING (CONTINUED)
------------------------------------------------------------------------------------------------- EQ/Calvert EQ/Capital EQ/Bernstein Socially EQ/Capital Guardian Diversified Responsible Guardian International Value Fund Fund Growth Fund ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 1995 -- -- -- -- ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 1995 -- -- -- -- ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 1996 -- -- -- -- ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 1996 -- -- -- -- ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 1997 -- -- -- -- ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 1997 -- -- -- -- ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 1998 -- -- -- -- ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 1998 -- -- -- -- ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 1999 $ 95.43 $ 106.58 $ 120.77 $ 128.61 ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 1999 -- -- -- -- ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 2000 $ 97.35 $ 103.48 $ 99.31 $ 104.06 ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 2000 -- -- 400 1 ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 2001 $ 98.39 $ 88.27 $ 75.02 $ 82.32 ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 2001 156 -- 448 301 ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 2002 $ 84.97 $ 64.92 $ 55.26 $ 69.94 ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 2002 158 -- 389 296 ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 2003 $ 109.39 $ 83.07 $ 68.49 $ 92.75 ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 2003 157 -- 498 293 ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 2004 $ 124.10 $ 86.05 $ 72.29 $ 105.37 ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 2004 109 -- 492 -- ------------------------------------------------------------------------------------------------- Unit value as of: December 31,2005 $ 130.84 $ 93.56 $ 75.98 $ 123.42 ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31,2005 111 -- 487 -- -------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------ EQ/Capital EQ/Capital Guardian Guardian EQ/Equity Research U.S. 500 Fund Equity Fund Index Fund ------------------------------------------------------------------------------ Unit value as of: December 31, 1995 -- -- $ 138.75 ------------------------------------------------------------------------------ Number of units outstanding at December 31, 1995 -- -- 641 ------------------------------------------------------------------------------ Unit value as of: December 31, 1996 -- -- $ 169.72 ------------------------------------------------------------------------------ Number of units outstanding at December 31, 1996 -- -- 3,856 ------------------------------------------------------------------------------ Unit value as of: December 31, 1997 -- -- $ 224.89 ------------------------------------------------------------------------------ Number of units outstanding at December 31, 1997 -- -- 7,176 ------------------------------------------------------------------------------ Unit value as of: December 31, 1998 -- -- $ 287.87 ------------------------------------------------------------------------------ Number of units outstanding at December 31, 1998 -- -- 11,983 ------------------------------------------------------------------------------ Unit value as of: December 31, 1999 $ 105.35 $ 101.11 $ 346.38 ------------------------------------------------------------------------------ Number of units outstanding at December 31, 1999 -- -- 12,855 ------------------------------------------------------------------------------ Unit value as of: December 31, 2000 $ 111.58 $ 104.73 $ 313.02 ------------------------------------------------------------------------------ Number of units outstanding at December 31, 2000 -- -- 5,112 ------------------------------------------------------------------------------ Unit value as of: December 31, 2001 $ 109.33 $ 102.63 $ 275.50 ------------------------------------------------------------------------------ Number of units outstanding at December 31, 2001 263 538 3,528 ------------------------------------------------------------------------------ Unit value as of: December 31, 2002 $ 82.36 $ 78.34 $ 214.26 ------------------------------------------------------------------------------ Number of units outstanding at December 31, 2002 445 646 2,322 ------------------------------------------------------------------------------ Unit value as of: December 31, 2003 $ 108.30 $ 106.85 $ 274.41 ------------------------------------------------------------------------------ Number of units outstanding at December 31, 2003 320 639 1,595 ------------------------------------------------------------------------------ Unit value as of: December 31, 2004 $ 120.11 $ 116.82 $ 303.09 ------------------------------------------------------------------------------ Number of units outstanding at December 31, 2004 178 -- 1,365 ------------------------------------------------------------------------------ Unit value as of: December 31,2005 $ 127.38 $ 123.78 $ 317.06 ------------------------------------------------------------------------------ Number of units outstanding at December 31,2005 192 -- 1,333 ------------------------------------------------------------------------------ I-7 Appendix: Condensed financial information SEPARATE ACCOUNT NO. 66 (POOLED) UNIT VALUES AND NUMBER OF REGISTERED UNITS OUTSTANDING (CONTINUED)
------------------------------------------------------------------------------------------------- EQ/Janus EQ/FI Mid Large Cap EQ/Evergreen Cap EQ/FI MidCap Growth Omega Fund Fund Value Fund Fund ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 1995 -- -- -- -- ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 1995 -- -- -- -- ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 1996 -- -- -- -- ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 1996 -- -- -- -- ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 1997 -- -- -- -- ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 1997 -- -- -- -- ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 1998 -- -- $ 105.06 -- ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 1998 -- -- -- -- ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 1999 $ 105.75 -- $ 106.96 -- ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 1999 -- -- 32 -- ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 2000 $ 93.36 $ 100.42 $ 112.45 $ 84.32 ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 2000 1 -- 32 -- ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 2001 $ 77.48 $ 86.96 $ 116.95 $ 64.96 ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 2001 16 123 37 -- ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 2002 $ 58.87 $ 70.90 $ 99.75 $ 45.27 ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 2002 59 496 547 -- ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 2003 $ 81.36 $ 101.82 $ 132.94 $ 56.98 ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 2003 80 87 405 19 ------------------------------------------------------------------------------------------------- Unit value as of: December 31, 2004 $ 87.09 $ 118.14 $ 156.66 $ 63.89 ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31, 2004 100 -- 419 19 ------------------------------------------------------------------------------------------------- Unit value as of: December 31,2005 $ 90.54 $ 125.66 $ 174.39 $ 68.55 ------------------------------------------------------------------------------------------------- Number of units outstanding at December 31,2005 -- 334 657 18 -------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------ EQ/JP Morgan EQ/Lazard Value Small Cap EQ/Marsico Opportunities Value Fund Focus Fund ------------------------------------------------------------------------------ Unit value as of: December 31, 1995 -- -- -- ------------------------------------------------------------------------------ Number of units outstanding at December 31, 1995 -- -- -- ------------------------------------------------------------------------------ Unit value as of: December 31, 1996 -- -- -- ------------------------------------------------------------------------------ Number of units outstanding at December 31, 1996 -- -- -- ------------------------------------------------------------------------------ Unit value as of: December 31, 1997 -- -- -- ------------------------------------------------------------------------------ Number of units outstanding at December 31, 1997 -- -- -- ------------------------------------------------------------------------------ Unit value as of: December 31, 1998 $ 113.78 -- -- ------------------------------------------------------------------------------ Number of units outstanding at December 31, 1998 -- -- -- ------------------------------------------------------------------------------ Unit value as of: December 31, 1999 $ 112.24 $ 97.39 -- ------------------------------------------------------------------------------ Number of units outstanding at December 31, 1999 50 -- -- ------------------------------------------------------------------------------ Unit value as of: December 31, 2000 $ 119.84 $ 115.42 -- ------------------------------------------------------------------------------ Number of units outstanding at December 31, 2000 475 -- -- ------------------------------------------------------------------------------ Unit value as of: December 31, 2001 $ 111.68 $ 135.90 $ 106.25 ------------------------------------------------------------------------------ Number of units outstanding at December 31, 2001 487 57 -- ------------------------------------------------------------------------------ Unit value as of: December 31, 2002 $ 90.40 $ 117.08 $ 93.97 ------------------------------------------------------------------------------ Number of units outstanding at December 31, 2002 487 262 -- ------------------------------------------------------------------------------ Unit value as of: December 31, 2003 $ 114.64 $ 160.84 $ 123.22 ------------------------------------------------------------------------------ Number of units outstanding at December 31, 2003 472 62 -- ------------------------------------------------------------------------------ Unit value as of: December 31, 2004 $ 127.11 $ 188.35 $ 136.17 ------------------------------------------------------------------------------ Number of units outstanding at December 31, 2004 468 7 -- ------------------------------------------------------------------------------ Unit value as of: December 31,2005 $ 132.10 $ 197.17 $ 150.75 ------------------------------------------------------------------------------ Number of units outstanding at December 31,2005 464.02 211 -- ------------------------------------------------------------------------------ Appendix: Condensed financial information I-8 SEPARATE ACCOUNT NO. 66 (POOLED) UNIT VALUES AND NUMBER OF REGISTERED UNITS OUTSTANDING (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------ EQ/MFS EQ/Van Kampen Emerging EQ/MFS Emerging EQ/Mercury EQ/Mercury Growth Investors EQ/Money Markets Basic Value International Companies Trust Market Equity Equity Fund Value Fund Fund Fund Fund Fund ------------------------------------------------------------------------------------------------------------------------------ Unit value as of: December 31, 1995 -- -- -- -- $ 108.49 -- ------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 1995 -- -- -- -- 1,374 -- ------------------------------------------------------------------------------------------------------------------------------ Unit value as of: December 31, 1996 -- -- -- -- $ 114.22 -- ------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 1996 -- -- -- -- 1,397 -- ------------------------------------------------------------------------------------------------------------------------------ Unit value as of: December 31, 1997 -- -- -- -- $ 120.35 -- ------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 1997 -- -- -- -- 1,351 -- ------------------------------------------------------------------------------------------------------------------------------ Unit value as of: December 31, 1998 $ 107.43 -- $ 123.19 -- $ 126.71 $ 111.23 ------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 1998 -- -- 30 -- 1,249 -- ------------------------------------------------------------------------------------------------------------------------------ Unit value as of: December 31, 1999 $ 127.78 $ 136.14 $ 213.94 $ 104.35 $ 132.95 $ 217.72 ------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 1999 164 26 3,035 -- 601 197 ------------------------------------------------------------------------------------------------------------------------------ Unit value as of: December 31, 2000 $ 142.86 $ 119.37 $ 173.64 $ 103.62 $ 141.19 $ 130.53 ------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 2000 110 125 3,680 478 438 190 ------------------------------------------------------------------------------------------------------------------------------ Unit value as of: December 31, 2001 $ 150.76 $ 93.68 $ 114.52 $ 87.07 $ 146.56 $ 123.81 ------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 2001 1,078 459 2,173 472 653 209 ------------------------------------------------------------------------------------------------------------------------------ Unit value as of: December 31, 2002 $ 125.65 $ 78.10 $ 75.21 $ 68.77 $ 148.67 $ 116.49 ------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 2002 228 605 1,328 466 4,189 158 ------------------------------------------------------------------------------------------------------------------------------ Unit value as of: December 31, 2003 $ 164.81 $ 99.99 $ 97.26 $ 83.93 $ 149.82 $ 181.64 ------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 2003 192 430 1,340 415 223 66 ------------------------------------------------------------------------------------------------------------------------------ Unit value as of: December 31, 2004 $ 182.26 $ 121.64 $ 109.53 $ 93.50 $ 151.28 $ 224.66 ------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding at December 31, 2004 122 129 1,478 410 141 83 ------------------------------------------------------------------------------------------------------------------------------ Unit value as of: December 31,2005 $ 187.64 $ 134.82 $ 119.42 $ 100.22 $ 155.57 $ 298.30 ------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding at December 31,2005 336 473 1,365 404 140 86 ------------------------------------------------------------------------------------------------------------------------------
I-9 Appendix: Condensed financial information Statement of additional information -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Fund Information 2 General 2 Restrictions and requirements of the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds 2 Certain investments of the Alliance Bond and Alliance Balanced Funds 2 Portfolio holdings policy for the Pooled Separate Accounts 4 Brokerage fees and charges for securities transactions 4 Additional information about RIA 5 Loan provisions 5 Annuity benefits 6 Amount of fixed-annuity payments 6 Ongoing operations fee 6 Management for the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds and AXA Equitable 7 Funds 7 Portfolio managers' information (Alliance Bond Fund, Alliance Balanced Fund, Alliance Common Stock Fund and Alliance Mid Cap Growth Fund) 7 Investment professional conflict of interest disclosure 10 Portfolio manager compensation 11 Distribution of the contracts 12 Custodian and independent registered public accounting firm 12 AXA Equitable 13 Directors 13 Directors -- Officers 14 Other Officers 15 Financial statements index 21 Financial statements FSA-1 Send this request form to receive a Statement of Additional Information To: AXA Equitable--RIA Service Office P.O. Box 8095 Boston, MA 02266-8095 Please send me an Retirement Investment Account(R) SAI for May 1, 2006. -------------------------------------------------------------------------------- Name -------------------------------------------------------------------------------- Address -------------------------------------------------------------------------------- City State Zip Client number: -------------------------------------------------------------------------------- (SAI__ (5/06)) Retirement Investment Account(R) Statement of additional information dated May 1, 2006 -------------------------------------------------------------------------------- This statement of additional information ("SAI") is not a prospectus. It should be read in conjunction with the prospectus for our Retirement Investment Account(R) ("RIA"), dated May 1, 2006 ("prospectus"), and any supplements. Terms defined in the prospectus have the same meaning in the SAI unless the context otherwise requires. On September 7, 2004, our name was changed from "The Equitable Life Assurance Society of the United States" to "AXA Equitable Life Insurance Company." You can obtain a copy of the prospectus, and any supplements to the prospectus, from us free of charge by writing or calling the RIA service office listed on the back of this SAI, or by contacting your financial professional. Our home office is located at 1290 Avenue of the Americas, New York, N.Y. 10104 and our telephone number is (212) 554-1234. TABLE OF CONTENTS Fund information 2 General 2 Restrictions and requirements of the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds 2 Certain investments of the Alliance Bond and Alliance Balanced Funds 2 Portfolio holdings policy for the Pooled Separate Accounts 4 Brokerage fees and charges for securities transactions 4 Additional information about RIA 5 Loan provisions 5 Annuity benefits 5 Amount of fixed-annuity payments 6 Ongoing operations fee 6 Management for the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds and AXA Equitable 7 Funds 7 Portfolio managers' information (Alliance Bond Fund, Alliance Balanced Fund, Alliance Common Stock Fund and Alliance Mid Cap Growth Fund) 7 Investment professional conflict of interest disclosure 10 Portfolio manager compensation 11 Distribution of the contracts 12 Custodian and independent registered public accounting firm 12 AXA Equitable 13 Directors 13 Officers -- Directors 14 Other Officers 15 Financial statements index 21 Financial statements FSA-1 Copyright 2006. AXA Equitable Life Insurance Company 1290 Avenue of the Americas, New York, New York 10104. All rights reserved. Retirement Investment Account(R) is a service mark of The AXA Equitable Life Insurance Company. SAI 4ACS x01285 FUND INFORMATION GENERAL In our prospectus we discuss in more detail, among other things, the structure of the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds, their investment objectives and policies, including the types of portfolio securities that they may hold and levels of investment risks that may be involved, and investment management. We also summarize certain of these matters with respect to the Investment Funds and their corresponding portfolios. See "Investment options" in the prospectus. Here we will discuss special restrictions, requirements and transaction expenses that apply to the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds, certain investments of the Alliance Bond Fund and determination of the value of units for all Funds, including some historical information. You can find information about the investment objectives and policies, as well as restrictions, requirements and risks pertaining to the corresponding AXA Premier VIP Trust or EQ Advisors Trust portfolio in which the Investment Funds invest in the prospectus and SAI for each Trust. RESTRICTIONS AND REQUIREMENTS OF THE ALLIANCE BOND, ALLIANCE BALANCED, ALLIANCE COMMON STOCK AND ALLIANCE MID CAP GROWTH FUNDS Neither the Alliance Common Stock Fund nor the Alliance Balanced Fund will make an investment in an industry if that investment would cause either Fund's holding in that industry to exceed 25% of either Fund's assets. The Alliance Bond Fund, Alliance Common Stock Fund and Alliance Mid Cap Growth Fund will not purchase or write puts or calls (options). The Alliance Balanced Fund's investment policies do not prohibit hedging transactions such as through the use of put and call options and stock index or interest rate futures. However, the Alliance Balanced Fund currently has no plans to enter into such transactions. The following investment restrictions apply to the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds. None of those Funds will: o trade in foreign exchange (except transactions incidental to the settlement of purchases or sales of securities for a Fund and contracts for the purchase or sale of a specific foreign currency at a future date at a price set at the time of the contract); o make an investment in order to exercise control or management over a company; o underwrite the securities of other companies, including purchasing securities that are restricted under the 1933 Act or rules or regulations thereunder (restricted securities cannot be sold publicly until they are registered under the 1933 Act), except as stated below; o make short sales, except when the Fund has, by reason of ownership of other securities, the right to obtain securities of equivalent kind and amount that will be held so long as they are in short position; o trade in commodities or commodity contracts (except the Alliance Balanced Fund is not prohibited from entering into hedging transactions through the use of stock index or interest rate futures); o purchase real estate or mortgages, except as stated below. The Funds may buy shares of real estate investment trusts listed on stock exchanges or reported on the NASDAQ; o have more than 5% of its assets invested in the securities of anyone registered investment company. A Fund may not own more than 3% of a registered investment company's outstanding voting securities. The Fund's total holdings of registered investment company securities may not exceed 10% of the value of the Fund's assets; o purchase any security on margin or borrow money except for short-term credits necessary for clearance of securities transactions; o make loans, except loans through the purchase of debt obligations or through entry into repurchase agreements; or o invest more than 10% of its total assets in restricted securities, real estate investments, or portfolio securities not readily marketable (The Alliance Common Stock Fund will not invest in restricted securities). CERTAIN INVESTMENTS OF THE ALLIANCE BOND AND ALLIANCE BALANCED FUNDS The following are brief descriptions of certain types of investments which may be made by the Alliance Bond and Alliance Balanced Funds and certain risks and investment techniques. Mortgage related securities. The Alliance Bond and Alliance Balanced Funds may invest in mortgage-related securities (including agency and non-agency fixed, ARM and hybrid pass throughs, agency and non-agency CMO's, commercial mortgage-backed securities and dollar rolls). Principal and interest payments made on the mortgages in the pools are passed through to the holder of such securities. Payment of principal and interest on some mortgage-related securities (but not the market value of the securities themselves) may be guaranteed by the full faith and credit of the U.S. Government (in the case of securities guaranteed by the Government National Mortgage Association, or "GNMA"), or guaranteed by agencies or instrumentalities of the U.S. Government (in the case of securities guaranteed by the Federal National Mortgage Association ("FNMA") or the Federal Home Loan Mortgage Corporation ("FHLMC"), which are supported only by discretionary authority of the U.S. Government to purchase the agency's obligations). Mortgage-related securities created by non-governmental issuers (such as commercial banks, savings and loan institutions, private mortgage insurance companies, mortgage bankers, and other secondary market issuers) may be supported by various forms of insurance or guarantees, including individual loan, title, pool, and hazard insurance, and letters of credit, which may be issued by governmental entities, private insurers or the mortgage poolers. Mortgage-related securities include agency and non-agency fixed, ARM and hybrid pass-throughs, agency and non-agency CMO's, commercial mortgage-backed securities and dollar rolls. 2 Collateralized mortgage obligations. The Alliance Bond and Alliance Balanced Funds may invest in collateralized mortgage obligations ("CMOs"). CMOs are debt securities collateralized by underlying mortgage loans or pools of mortgage pass-through securities guaranteed by GNMA, FHLMC or FNMA and are generally issued by limited purpose finance subsidiaries of U.S. Government instrumentalities. CMOs are not, however, mortgage pass-through securities. Rather, they are pay-through securities, i.e., securities backed by the cash flow from the underlying mortgages. Investors in CMOs are not owners of the underlying mortgages, which serve as collateral for such debt securities, but are simply owners of a debt security backed by such pledged assets. CMOs are typically structured into multiple classes, with each class bearing a different stated maturity and having different payment streams. Monthly payments of principal, including prepayments, are first returned to investors holding the shortest maturity class; investors holding longer maturity classes receive principal payments only after the shorter class or classes have been retired. Asset-backed securities. The Alliance Balanced Fund may purchase asset-backed securities. The securitization techniques used to develop mortgage-related securities are also applied to a broad range of financial assets. Through the use of trusts and special purpose vehicles, various types of assets, including automobile loans and leases, credit card receivables, home equity loans, equipment leases and trade receivables, are securitized in structures similar to the structures used in mortgage securitizations. Zero coupon bonds. The Alliance Bond and Alliance Balanced Funds may invest in zero coupon bonds. Such bonds may be issued directly by agencies and instrumentalities of the U.S. Government or by private corporations. Zero coupon bonds may originate as such or may be created by stripping an outstanding bond. Zero coupon bonds do not make regular interest payments. Instead, they are sold at a deep discount from their face value. Because a zero coupon bond does not pay current income, its price can be very volatile when interest rates change. Repurchase agreements. In repurchase agreements, the Alliance Bond or Alliance Balanced Fund buys securities from a seller, usually a bank or brokerage firm, with the understanding that the seller will repurchase the securities at a higher price at a future date. During the term of the repurchase agreement the Fund retains the securities subject to the repurchase agreement as collateral securing the seller's repurchase obligation, continually monitors on a daily basis the market value of the securities subject to the agreement and requires the seller to deposit with the Fund collateral equal to any amount by which the market value of the securities subject to the repurchase agreement falls below the resale amount provided under the repurchase agreement. We evaluate the creditworthiness of sellers with whom we enter into repurchase agreements. Such transactions afford an opportunity for the Fund to earn a fixed rate of return on available cash at minimal market risk, although the Fund may be subject to various delays and risks of loss if the seller is unable to meet its obligation to repurchase. The Funds currently treat repurchase agreements maturing in more than seven days as illiquid securities. Debt securities subject to prepayment risks. Mortgage-related securities and certain collateralized mortgage obligations, asset-backed securities and other debt instruments in which the Alliance Balanced Fund and Alliance Bond Fund may invest are subject to prepayments prior to their stated maturity. The Fund usually is unable to accurately predict the rate at which prepayments will be made, which rate may be affected, among other things, by changes in generally prevailing market interest rates. If prepayments occur, the Fund suffers the risk that it will not be able to reinvest the proceeds at as high a rate of interest as it had previously been receiving. Also, the Fund will incur a loss to the extent that prepayments are made for an amount that is less than the value at which the security was then being carried by the Fund. When-issued and delayed delivery securities. The Alliance Bond and Alliance Balanced Funds may purchase and sell securities on a when-issued or delayed delivery basis. In these transactions, securities are purchased or sold by a Fund with payment and delivery taking place in the future in order to secure what is considered to be an advantageous price or yield to the Fund at the time of entering into the transaction. However, the market value of such securities at the time of settlement may be more or less than the purchase price then payable. When a Fund engages in when-issued or delayed delivery transactions, the Fund relies on the other party to consummate the transaction. Failure to consummate the transaction may result in the Fund missing the opportunity of obtaining a price or yield considered to be advantageous. When-issued and delayed delivery transactions are generally expected to settle within three months from the date the transactions are entered into, although the Fund may close out its position prior to the settlement date. The Fund will sell on a forward settlement basis only securities it owns or has the right to acquire. Foreign currency forward contracts. The Alliance Balanced Fund may enter into contracts for the purchase or sale of a specific foreign currency at a future date at a price set at the time of the contract. The Fund will enter into such forward contracts for hedging purposes only. Hedging transactions. The Alliance Balanced Fund may engage in hedging transactions which are designed to protect against anticipated adverse price movements in securities owned or intended to be purchased by the Fund. PORTFOLIO HOLDINGS POLICY FOR THE POOLED SEPARATE ACCOUNTS It is the policy of the Pooled Separate Accounts (the "Separate Accounts") to safeguard against misuse of their portfolio holdings information and to prevent the selective disclosure of such information. Each Separate Account will publicly disclose its holdings in accordance with regulatory requirements, such as periodic portfolio disclosure in filings with the SEC. The portfolio holdings information for the Separate Accounts including, among other things, the top ten holdings and complete portfolio holdings, is available on a monthly basis and generally can be obtained by contract holders/participants or their consultants, free of charge, 15 days after the month end by calling 1-866-642-3127. AXA Equitable has established this procedure to provide prompt portfolio holdings information so that contractholders and their consultants can perform effective oversight of plan investments. 3 On a case-by-case basis, AXA Equitable may approve the disclosure of non-public portfolio holdings and trading information to particular individuals or entities in appropriate circumstances. In all cases, the approval of release of non-public portfolio holdings or trading information will be conditioned on the obligation of the recipient to maintain the confidentiality of the information including an obligation not to trade on non-public information. Neither AXA Equitable nor its investment adviser, AllianceBernstein L.P., discloses non-public portfolio holdings or portfolio trade information of any Separate Account to the media. In addition, with the approval of our investment officers, non-public portfolio holdings information may be provided as part of the legitimate business activities of each Separate Account to the following service providers and other organizations: auditors; the custodian; the accounting service provider, the administrator; the transfer agent; counsel to the Separate Accounts; regulatory authorities; pricing services; and financial printers. The entities to whom we or the investment advisor voluntarily provide holdings information, either by explicit agreement or by virtue of their respective duties to each Separate Account, are required to maintain the confidentiality of the information disclosed, including an obligation not to trade on non-public information. As of the date of this SAI, we have ongoing arrangements to provide non-public portfolio holdings information to the following service providers: JPMorgan Chase, State Street-Kansas City, PricewaterhouseCoopers LLP, Capital Printing Systems, Inc., and RR Donnelley. Each of these arrangements provides for ongoing disclosure of current portfolio holdings information so that the entity can provide services to the Separate Accounts. These service providers do not provide any compensation to AXA Equitable, the Separate Accounts or any affiliates in return for the disclosure of non-public portfolio holdings information. Until particular portfolio holdings information has been released in regulatory filings or is otherwise available to contract holders and/or participants, and except with regard to the third parties described above, no such information may be provided to any party without the approval of our investment officers or the execution by such third party of an agreement containing appropriate confidentiality language which has been approved by our Legal Department. Our investment officers will monitor and review any potential conflicts of interest between the contract holders/participants and AXA Equitable and its affiliates that may arise from potential release of non-public portfolio holdings information. We will not release portfolio holdings information unless it is determined that the disclosure is in the best interest of its contract holders/participants and there is a legitimate business purpose for such disclosure. No compensation is received by AXA Equitable or its affiliates or any other person in connection with the disclosure of portfolio holdings information. BROKERAGE FEES AND CHARGES FOR SECURITIES TRANSACTIONS We discuss in the prospectus that we are the investment manager of the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds. As the investment manager of these Funds, we invest and reinvest the assets of these Funds in a manner consistent with the policies described in the prospectus. In providing these services we currently use the personnel and facilities of our majority-owned subsidiary, AllianceBernstein L.P. ("Alliance"), for portfolio selection and transaction services, including arranging the execution of portfolio transactions. Alliance is also an adviser for certain portfolios in EQ Advisors Trust and AXA Premier VIP Trust. Information on brokerage fees and charges for securities transactions for the Trusts' portfolios is provided in the prospectus for each Trust. The Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds are charged for securities brokers commissions, transfer taxes and other fees and expenses relating to their operation. Transactions in equity securities for a Fund are executed primarily through brokers which receive a commission paid by the Fund. Brokers are selected by Alliance. Alliance seeks to obtain the best price and execution of all orders placed for the portfolio of the Funds, considering all the circumstances. If transactions are executed in the over-the-counter market Alliance will deal with the principal market makers, unless more favorable prices or better execution is otherwise obtainable. There are occasions on which portfolio transactions for the Funds may be executed as part of concurrent authorizations to purchase or sell the same security for certain other accounts or clients advised by Alliance. Although these concurrent authorizations potentially can be either advantageous or disadvantageous to the Funds, they are effected only when it is believed that to do so is in the best interest of the Funds. When these concurrent authorizations occur, the objective is to allocate the executions among the accounts or clients in a fair manner. We try to choose only brokers which we believe will obtain the best prices and executions on securities transactions. Subject to this general requirement, we also consider the amount and quality of securities research services provided by a broker. Typical research services include general economic information and analyses and specific information on and analyses of companies, industries and markets. Factors we use in evaluating research services include the diversity of sources used by the broker and the broker's experience, analytical ability and professional stature. The receipt of research services from brokers tends to reduce our expenses in managing the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds. We take this into account when setting the expense charges. Brokers who provide research services may charge somewhat higher commissions than those who do not. However, we will select only brokers whose commissions we believe are reasonable in all the circumstances. We periodically evaluate the services provided by brokers and prepare internal proposals for allocating among those various brokers business for all the accounts we manage or advise. That evaluation involves consideration of the overall capacity of the broker to execute transactions, its financial condition, its past performance and the value of research services provided by the broker in servicing the various accounts advised or managed by us. Generally, we do not tell brokers that we will try to allocate a particular amount of business to them. We do occasionally let brokers know how their performance has been evaluated. 4 Research information that we obtain may be used in servicing all clients or accounts under our management, including our general account. Similarly, we will not necessarily use all research provided by a broker or dealer with which the Funds transact business in connection with those Funds. Transactions for the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds in the over-the-counter market are normally executed as principal transactions with a dealer that is a principal market maker in the security, unless a better price or better execution can be obtained from another source. Under these circumstances, the Funds pay no commission. Similarly, portfolio transactions in money market and debt securities will normally be executed through dealers or underwriters under circumstances where the Fund pays no commission. When making securities transactions for the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds that do not involve paying a brokerage commission (such as the purchase of short-term debt securities), we seek to obtain prompt execution in an effective manner at the best price. Subject to this general objective, we may give orders to dealers or underwriters who provide investment research. None of the Funds will pay a higher price, however, and the fact that we may benefit from such research is not considered in setting the expense charges. In addition to using brokers and dealers to execute portfolio securities transactions for clients or accounts we manage, we may enter into other types of business transactions with brokers or dealers. These other transactions will be unrelated to allocation of the Funds' portfolio transactions. For the years ended December 31, 2005, 2004 and 2003, total brokerage commissions for Separate Account No. 10 -- Pooled were $58,825, $68,731 and $78,626, respectively; for Separate Account No. 4 -- Pooled were $699,416, $1,126,910 and $929,767, respectively; for Separate Account No. 3 -- Pooled were $378,750, $708,388 and $466,820, respectively; and for Separate Account No. 13 -- Pooled were $0, $0 and $0, respectively. For the fiscal year ended December 31, 2005, commissions of $57,774, $678,440 and $353,557 were paid to brokers providing research services to Separate Account No. 10 -- Pooled, Separate Account No. 4 -- Pooled and Separate Account No. 3 -- Pooled, respectively, on portfolio transactions of $306,192,274, $765,845,611 and $240,838,239, respectively. ADDITIONAL INFORMATION ABOUT RIA LOAN PROVISIONS Loans to plan trustees on behalf of participants are permitted in our RIA program. It is the plan administrator's responsibility to administer the loan program. The following are important features of the RIA loan provision: o We will only permit loans from the guaranteed interest option. If the amount requested to be borrowed plus the loan fee and loan reserve we discuss below is more than the amount available in the guaranteed interest option for the loan transaction, the employer can move the additional amounts necessary from one or more Funds to the guaranteed interest option. o The plan administrator determines the interest rate, the maximum term and all other terms and conditions of the loan. o Repayment of loan principal and interest can be made only to the guaranteed interest option. The employer must identify the portion of the repayment amount which is principal and which is interest. o Upon repayment of a loan amount, any repayment of loan principal and loan reserve (see below) taken from one or more Funds for loan purposes may be moved back to a Fund. o We charge a loan fee in an amount equal to 1% of the loan principal amount on the date a loan is made. The contingent withdrawal charge will be applied to any unpaid principal, as if the amount had been withdrawn on the day the principal payment was due. See "Charges and expenses" in the prospectus. o The minimum amount of a loan for a participant is $1,000, and the maximum amount is 90% of the balances in all the investment options for a participant. An employer plan, the Code and the DOL (as described in "Tax information" in the prospectus) may impose additional conditions or restrictions on loan transactions. o On the date a loan is made, we create a loan reserve account in the guaranteed interest option in an amount equal to 10% of the loan amount. The 10% loan reserve is intended to cover (1) the ongoing operations fee applicable to amounts borrowed, (2) the possibility of our having to deduct applicable contingent withdrawal charges (see "Charges and expenses" in the prospectus) and (3) the deduction of any other withholdings, if required. The loan amount will not earn any interest under the contracts while the loan is outstanding. The amount of the loan reserve will continue to earn interest at the guaranteed interest option rate applicable for the employer plan. o The ongoing operations fee will apply to the sum of the invest ment option balances (including the loan reserve) plus any unpaid loan principal. If the employer plan is terminated or any amount is withdrawn, or if any withdrawal from RIA results in the reduction of the 10% loan reserve amount in the guaranteed interest option, during the time a loan is outstanding, the contingent withdrawal charge will be applied to any principal loan balances outstanding as well as to any employer plan balances (including the loan reserve) in the investment options. See "Charges and expenses" in the prospectus. ANNUITY BENEFITS Subject to the provisions of an employer plan, we have available under RIA the following forms of fixed annuities. o Life annuity: An annuity which guarantees a lifetime income to the retired employee-participant ("annuitant") and ends with the last monthly payment before the annuitant's death. There is no death benefit associated with this annuity form and it provides the highest monthly amount of any of the guaranteed life annu- 5 ity forms. If this form of annuity is selected, it is possible that only one payment will be made if the annuitant dies after that payment. o Life annuity -- period certain: This annuity form guarantees a lifetime income to the annuitant and, if the annuitant dies during a previously selected minimum payment period, continuation of payments to a designated beneficiary for the balance of the period. The minimum period is usually 5, 10, 15 or 20 years. o Life annuity -- refund certain: This annuity form guarantees a lifetime income to the annuitant and, if the annuitant dies before the initial single premium has been recovered, payments will continue to a designated beneficiary until the single premium has been recovered. If no beneficiary survives the annuitant, the refund will be paid in one lump sum to the estate. o Period certain annuity: Instead of guaranteed lifetime income, this annuity form provides for payments to the annuitant over a specified period, usually 5, 10, 15 or 20 years, with payments continuing to the designated beneficiary for the balance of the period if the annuitant dies before the period expires. o Qualified joint and survivor life annuity: This annuity form guarantees lifetime income to the annuitant, and, after the annuitant's death, the continuation of income to the surviving spouse. Generally, unless a married annuitant elects otherwise with the written consent of his spouse, this will be the form of annuity payment. If this form of annuity is selected, it is possible that only one payment will be made if both the annuitant and the spouse die after that payment. All of the forms outlined above (with the exception of qualified joint and survivor life annuity) are available as either Single or Joint life annuities. We offer other forms not outlined here. Your financial professional can provide details. AMOUNT OF FIXED-ANNUITY PAYMENTS Our forms of a fixed annuity provide monthly payments of specified amounts. Fixed-annuity payments, once begun, will not change. The size of payments will depend on the form of annuity that is chosen, our annuity rate tables in effect when the first payment is made, and, in the case of a life income annuity, on the annuitant's age. The tables in our contracts show monthly payments for each $1,000 of proceeds applied under an annuity. If our annuity rates in effect on the annuitant's retirement date would yield a larger payment, those current rates will apply instead of the tables. Our annuity rate tables are designed to determine the amounts required for the annuity benefits elected and for administrative and investment expenses and mortality and expense risks. Under our contracts we can change the annuity rate tables every five years. Such changes would not affect annuity payments being made. ONGOING OPERATIONS FEE We determine the ongoing operations fee based on the combined net balances of an employer plan in all the investment options (including any outstanding loan balances) at the close of business on the last business day of each month. For employer plans that adopted RIA on or before February 9, 1986, we use the rate schedule set forth below, and apply it to the employer plan balances at the close of business on the last business day of the following month. For employer plans that adopted RIA after February 9, 1986 we use the rate schedule set forth in the prospectus. See "Charges and expenses" in the prospectus.
-------------------------------------------------------------------------------- Combined balance Monthly of investment options rate -------------------------------------------------------------------------------- First $150,000 1/12 of 1.25% Next $350,000 1/12 of 1.00% Next $500,000 1/12 of 0.75% Next $1,500,000 1/12 of 0.50% Over $2,500,000 1/12 of 0.25% --------------------------------------------------------------------------------
6 MANAGEMENT FOR THE ALLIANCE BOND, ALLIANCE BALANCED, ALLIANCE COMMON STOCK AND ALLIANCE MID CAP GROWTH FUNDS AND AXA EQUITABLE FUNDS In the Prospectus we give information about us, the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds and how we, together with Alliance, provide investment management for the investments and operations of these Funds. See "More information" in the prospectus. The amounts of the investment management and financial accounting fees we received from employer plans participating through registered contracts in the Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds in 2005 were $6,699, $9,873 and, $4,623, respectively; in 2004 were $6,299, $10,211 and $4,947, respectively; in 2003 were $6,150, $9,082 and $3,707, respectively. The amount of such fees received under the Alliance Bond Fund in 2005, 2004 and 2003 were $0, $0 and $0, respectively. PORTFOLIO MANAGERS' INFORMATION (ALLIANCE BOND FUND, ALLIANCE BALANCED FUND, ALLIANCE COMMON STOCK FUND AND ALLIANCE MID CAP GROWTH FUND) The tables and discussion below provide information with respect to the portfolio managers who are primarily responsible for the day-to-day management of each Fund.
------------------------------------------------------------------------------------------------------------------------------------ Alliance Bond Fund, Separate Account No. 13 ("Fund") AllianceBernstein L.P. ("Adviser") Information as of December 31, 2005 ------------------------------------------------------------------------------------------------------------------------------------ (a)(1) Portfolio manager(s) (a)(2) For each person identified in column (a)(3) For each of the categories in column of the Adviser named in the (a)(1), the number of other accounts of the (a)(2), the number of accounts and the total prospectus Adviser managed by the person within each assets in the accounts with respect to which category below and the total assets in the the advisory fee is based on the performance accounts managed within each category below of the account ----------------------------------------------------------------------------------------------------- Registered Other Pooled Other Accounts Registered Other Pooled Other Accounts Investment Investment Investment Investment Companies Vehicles Companies Vehicles ----------------------------------------------------------------------------------------------------- Number Total Number Total Number Total Number Total Number Total Number Total of Assets of Assets of Assets of Assets of Assets of Assets Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) ------------------------------------------------------------------------------------------------------------------------------------ Alison Martier 5 $6,463 5 $167 37 $4,766 N/A N/A N/A N/A N/A N/A ------------------------------------------------------------------------------------------------------------------------------------
Note: $MM means millions For a description of any material conflicts, please see "Investment professional conflict of interest" later in the SAI. For compensation information, please see "Alliance's compensation program" later in the SAI. Ownership of Securities of AXA's insurance products for which the Fund serves as an investment option (Retirement Investment Account, Members Retirement Program and American Dental Association):
------------------------------------------------------------------------------------------------------------------------------------ $10,001- $50,001- $100,001- $500,001 - over Portfolio Manager None $1-$10,000 $50,000 $100,000 $500,000 $1,000,000 $1,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Alison Martier N/A* ------------------------------------------------------------------------------------------------------------------------------------
* Shares owned by Alison Martier in Equity Fund and Mid Cap Growth are as of 3/10/06. While there are no insurance products ownership to report, Ms. Martier participates in the AXA Equitable Savings and Investment Plan and owns shares as follows: o 6766.355 shares (TPOW) Equity Fund: o 7545.908 shares (TPOX) Mid Cap Growth: Alison Martier is the team leader of the US Core Fixed Income team that manages this fund. Team Members include: Alison M. Martier -- Senior Vice President and Director -- US Core Fixed Income Ms. Martier became director of our US Core Fixed Income service in 2002. She manages US Core, Core Plus and Strategic Core Plus fixed income portfolios for institutional clients, as well as supervises the portfolio management team for our US Core and US Low Duration services. Ms. Martier joined AllianceBernstein in 1993 from Equitable Capital. She joined Equitable as a trader in 1979 and has been a portfolio manager since 1983. Ms. Martier holds a B.A. from Northwestern University and an M.B.A. from New York University's Graduate School of Business Administration. CFA Charterholder. Location: New York Greg Wilensky -- Vice President, Portfolio Manager and Director -- Inflation-Linked Securities Mr. Wilensky is a member of the US Core, US Low Duration and Liquid Markets teams, and also manages US Inflation Adjusted Bonds portfolios. In addition, Mr. Wilensky has been responsible for the firm's stable value business since 1998. Prior to joining AllianceBernstein as a portfolio manager in 1996, Mr. Wilensky was a treasury manager in the corporate finance group at AT&T Corp. He earned a B.S. in Business Administration from Washington University and an M.B.A. from the University of Chicago. Member of the New York Society of Security Analysts. CFA Charterholder. Location: New York 7 Shawn Keegan -- Vice President and Portfolio Manager Mr. Keegan is the investment-grade credit specialist for AllianceBernstein's US Core, Core Plus and Low Duration strategies. He joined AllianceBernstein in 1993 as a portfolio assistant. He spent a year at Aladdin Capital as a trader before joining the US Core Fixed Income Team in early 2001. He holds a B.S. in Finance from Siena College. Location: New York Larry Hill -- Vice President and Portfolio Manager Mr. Hill manages AllianceBernstein's Minneapolis Fixed Income and US Core portfolios. Prior to joining AllianceBernstein in 2000, Mr. Hill was an Executive Vice President at Investment Advisors, Inc. (IAI), a Minneapolis-based investment management subsidiary of Lloyds-TSB, London. In his sixteen years at IAI, Mr. Hill was a senior portfolio manager and served in several management positions including Chief Fixed Income Officer and Chief Investment Officer. Prior to joining IAI, Mr. Hill worked at First Minneapolis Bank as a portfolio manager, trader and manager of money market trading and sales. Mr. Hill received his B.S. and M.A. degrees from the University of Nebraska. CFA Charterholder. Location: Minneapolis Joran Laird -- Vice President and Portfolio Manager Mr. Laird has recently joined the US Core team from the New Zealand office where he was responsible for management of cash portfolios, quantitative trading and contributing to the overall fixed interest strategy. Prior to joining AllianceBernstein in 2000, Mr. Laird served as a treasury dealer and senior market risk analyst. He holds both a Bachelors Degree of Commerce and a Masters Degree of Commerce in Economics from the University of Canterbury. CFA Charterholder. Location: New York
------------------------------------------------------------------------------------------------------------------------------------ Alliance Balanced Fund, Separate Account No. 10 ("Fund") AllianceBernstein L.P. ("Adviser") Information as of December 31, 2005 ------------------------------------------------------------------------------------------------------------------------------------ (a)(1) Portfolio manager(s) (a)(2) For each person identified in column (a)(3) For each of the categories in column of the Adviser named in the (a)(1), the number of other accounts of the (a)(2), the number of accounts and the total prospectus Adviser managed by the person within each assets in the accounts with respect to which category below and the total assets in the the advisory fee is based on the performance accounts managed within each category below of the account ----------------------------------------------------------------------------------------------------- Registered Other Pooled Other Accounts Registered Other Pooled Other Accounts Investment Investment Investment Investment Companies Vehicles Companies Vehicles ----------------------------------------------------------------------------------------------------- Number Total Number Total Number Total Number Total Number Total Number Total of Assets of Assets of Assets of Assets of Assets of Assets Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) ------------------------------------------------------------------------------------------------------------------------------------ Christopher Toub N/A N/A N/A N/A 1 $60 N/A N/A N/A N/A N/A N/A ------------------------------------------------------------------------------------------------------------------------------------
Note: $MM means millions For a description of any material conflicts, please see "Investment professional conflict of interest" later in the SAI. For compensation information, please see "Alliance's compensation program" later in the SAI. Ownership of Securities of AXA Equitable's insurance products for which the Fund serves as an investment option (Retirement Investment Account, Members Retirement Program and American Dental Association):
------------------------------------------------------------------------------------------------------------------------------------ $10,001- $50,001- $100,001- $500,001 - over Portfolio Manager None $1-$10,000 $50,000 $100,000 $500,000 $1,000,000 $1,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Christopher Toub X ------------------------------------------------------------------------------------------------------------------------------------
Christopher Toub provides the asset allocation oversight of the Fund's sub-portfolios; however, the day-to-day management and investment decisions for the Fund's sub-portfolios are made by the following Balanced Account Team members, comprised of Mr. James K. Pang, Mr. Joshua B. Lisser and Mr. Shawn Keegan. These Balanced Account team members rely heavily on the Advisor's structured equity, international large cap growth and fixed-income investment teams and, in turn, the fundamental research of the Advisor's large internal research staff. Christopher M. Toub -- Executive Vice President of AllianceBernstein, Chief Executive Officer of AllianceBernstein Limited and Head -- Global/International Growth Equities Mr. Toub joined AllianceBernstein in 1992 as a portfolio manager with the disciplined growth group. He has been an Executive Vice President of AllianceBernstein since 1999 and Head of Global/International Growth Equities since 1998. He became Chief Executive Officer of AllianceBernstein Limited, a London based wholly-owned subsidiary of AllianceBernstein in April 2005. In this capacity he has local oversight of all our U.K. operations, including human resources, compliance, legal, infrastructure, facilities, finance and technology. He serves on AllianceBernstein's Management Executive Committee, the group of senior professionals responsible for managing the firm, enacting key strategic initiatives and allocating resources. He is also Head of Global/International Growth Equities, leading our global and non-US growth portfolio teams. Mr. Toub served as Director of Global Equity Research from 1998-2000, and joined the Global Research Growth team in 2004. Prior to joining AllianceBernstein in 1992, Mr. Toub was with Marcus, Schloss & Co., a private investment partnership, as an analyst and portfolio manager. At that time, he was a member of the New York Stock Exchange where he was a specialist. Prior to Marcus, Schloss & Co., Mr. Toub worked at Bear Stearns in proprietary trading. He was an Assistant Treasurer at J.P. Morgan. Mr. Toub received a B.A. from Williams College and an M.B.A. from Harvard Business School. Location: London 8 James K. Pang -- Senior Vice President and Global/International Large Cap Growth Portfolio Manager He joined AllianceBernstein in 1996 and had significant responsibility for the development and maintenance of AllianceBernstein's global/ international quantitative stock selection tools. Mr. Pang became a member of the Global/International Large Cap Growth team in 1998, and was a member of the European Growth team for four years. Prior to joining the firm, he was an associate with Donaldson, Lufkin & Jenrette responsible for coverage of Discount Store Retailers. Mr. Pang received his B.A. from Northwestern University. CFA Charterholder. Location: New York Joshua B. Lisser -- Senior Vice President and Chief Investment Officer -- Non-US Structured Equities Mr Lisser is a member of the Core/Blend services investment team. He joined AllianceBernstein in 1992 as a portfolio manager in the index strategies group and developed the international and global risk controlled equity services. Prior to joining AllianceBernstein, Mr. Lisser was with Equitable Capital specializing in derivative investment strategies. Mr. Lisser received a B.A. from the State University of New York at Binghamton, where he was elected a member of Phi Beta Kappa, and an M.B.A. from New York University. Location: New York Shawn Keegan -- Vice President and Portfolio Manager Mr. Keegan is the investment-grade credit specialist for AllianceBernstein's US Core, Core Plus and Low Duration strategies. He joined AllianceBernstein in 1993 as a portfolio assistant. He spent a year at Aladdin Capital as a trader before joining the US Core Fixed Income Team in early 2001. He holds a B.S. in Finance from Siena College. Location: New York
------------------------------------------------------------------------------------------------------------------------------------ Alliance Common Stock Fund, Separate Account No. 4 ("Fund") AllianceBernstein L.P. ("Adviser") Information as of December 31, 2005 ------------------------------------------------------------------------------------------------------------------------------------ (a)(1) Portfolio manager(s) (a)(2) For each person identified in column (a)(3) For each of the categories in column of the Adviser named in the (a)(1), the number of other accounts of the (a)(2), the number of accounts and the total prospectus Adviser managed by the person within each assets in the accounts with respect to which category below and the total assets in the the advisory fee is based on the performance accounts managed within each category below of the account ----------------------------------------------------------------------------------------------------- Registered Other Pooled Other Accounts Registered Other Pooled Other Accounts Investment Investment Investment Investment Companies Vehicles Companies Vehicles ----------------------------------------------------------------------------------------------------- Number Total Number Total Number Total Number Total Number Total Number Total of Assets of Assets of Assets of Assets of Assets of Assets Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) ------------------------------------------------------------------------------------------------------------------------------------ Alan Levi 4 $6,628 1 $15 14 $2,151 2 $4,479 N/A N/A N/A N/A ------------------------------------------------------------------------------------------------------------------------------------
Note: $ MM means millions For a description of any material conflicts, please see "Investment professional conflict of interest" later in the SAI. For compensation information, please see "Alliance's compensation program" later in the SAI. Ownership of Securities of AXA's insurance products for which the Fund serves as an investment option (Retirement Investment Account, Members Retirement Program and American Dental Association):
------------------------------------------------------------------------------------------------------------------------------------ $10,001- $50,001- $100,001- $500,001 - over Portfolio Manager None $1-$10,000 $50,000 $100,000 $500,000 $1,000,000 $1,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Alan Levi X ------------------------------------------------------------------------------------------------------------------------------------
The management of and investment decisions for the Fund's portfolio are made by AllianceBernstein's US Growth Team, which is responsible for management of all of AllianceBernstein's US Growth accounts. The US Growth Team relies heavily on the fundamental analysis and research of the AllianceBernstein's large internal research staff. While all members of the team work jointly to determine the investment strategy, including security selection, Mr. Alan Levi, a member of the AllianceBernstein's US Growth Team, is responsible for day-to-day management of and has oversight and order placement responsibilities for the Fund's portfolio. Alan E. Levi -- Senior Vice President and Team Leader Mr. Levi is the team leader of the US Disciplined Growth and US Growth teams. He joined AllianceBernstein in 1973 as a research analyst and served as director of US equity research from 1990-1995. Mr. Levi joined the US Disciplined Growth team as a portfolio manager in 1995, served as co-team leader from 2002-2003 and became the team leader in 2004. He became a US Growth portfolio manager in 1999 and became the team leader in 2002. Mr. Levi is a past director and treasurer of the Bank and Financial Analysts Association and served as a director of the New York Society of Security Analysts between 1992-1994. He received his B.A. from Johns Hopkins and an M.B.A. from the University of Chicago. Location: New York 9
------------------------------------------------------------------------------------------------------------------------------------ Alliance Mid Cap Growth Fund, Separate Account No. 3 ("Fund") AllianceBernstein L.P. ("Adviser") Information as of December 31, 2005 ------------------------------------------------------------------------------------------------------------------------------------ (a)(1) Portfolio manager(s) (a)(2) For each person identified in column (a)(3) For each of the categories in column of the Adviser named in the (a)(1), the number of other accounts of the (a)(2), the number of accounts and the total prospectus Adviser managed by the person within each assets in the accounts with respect to which category below and the total assets in the the advisory fee is based on the performance accounts managed within each category below of the account ----------------------------------------------------------------------------------------------------- Registered Other Pooled Other Accounts Registered Other Pooled Other Accounts Investment Investment Investment Investment Companies Vehicles Companies Vehicles ----------------------------------------------------------------------------------------------------- Number Total Number Total Number Total Number Total Number Total Number Total of Assets of Assets of Assets of Assets of Assets of Assets Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) ------------------------------------------------------------------------------------------------------------------------------------ Catherine Wood 5 $5,537 30 $8,880 52* $1,416 N/A N/A N/A N/A N/A N/A (AllianceBernstein L.P. and Regent Separately Managed Accounts) ------------------------------------------------------------------------------------------------------------------------------------
Note: $MM means millions * includes wrap fee accounts at the sponsor level For a description of any material conflicts, please see "Investment professional conflict of interest" later in the SAI. For compensation information, please see "Alliance's compensation program" later in the SAI. Ownership of Securities of AXA's insurance products for which the Fund serves as an investment option (Retirement Investment Account, Members Retirement Program and American Dental Association):
------------------------------------------------------------------------------------------------------------------------------------ $10,001- $50,001- $100,001- $500,001 - over Portfolio Manager None $1-$10,000 $50,000 $100,000 $500,000 $1,000,000 $1,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Catherine Wood X ------------------------------------------------------------------------------------------------------------------------------------
The management of and investment decisions for the Fund's portfolio are made by Ms. Catherine Wood. Ms. Wood relies heavily on the fundamental research efforts of the firm's extensive internal research staff, including the Global Research Department, Research for Strategic Change team and Research on Early Stage Growth team. Catherine Wood -- Senior Vice President, US Mid Cap Growth Team Leader and Chief Investment Officer -- US Strategic Research Ms. Wood is also the Chief Investment Officer of AllianceBernstein's Regent Investor Services. Ms. Wood joined AllianceBernstein in 2001 from Tupelo Capital Management, where she was a General Partner, co-managing global equity-oriented portfolios. Prior to that, Ms. Wood worked for 18 years with Jennison Associates as a Director and Portfolio Manager, Equity Research Analyst and Chief Economist. As a portfolio manager with Jennison, she invested in both US and international securities. Ms. Wood's experience in research ranges from media, telecommunications and emerging technologies to business services, consumer non-durables and basic industries. She started her career as an assistant economist at Capital Research from 1977 to 1980. She received her B.S., summa cum laude, from the University of Southern California. Location: New York INVESTMENT PROFESSIONAL CONFLICTS OF INTEREST DISCLOSURE As an investment adviser and fiduciary, Alliance owes its clients and shareholders an undivided duty of loyalty. We recognize that conflicts of interest are inherent in our business and accordingly have developed policies and procedures (including oversight monitoring) reasonably designed to detect, manage and mitigate the effects of actual or potential conflicts of interest in the area of employee personal trading, managing multiple accounts for multiple clients, including AllianceBernstein Mutual Funds, and allocating investment opportunities. Investment professionals, including portfolio managers and research analysts, are subject to the above-mentioned policies and oversight monitoring to ensure that all clients are treated equitably. We place the interests of our clients first and expect all of our employees to meet their fiduciary duties. EMPLOYEE PERSONAL TRADING Alliance has adopted a Code of Business Conduct and Ethics that is designed to detect and prevent conflicts of interest when investment professionals and other personnel of Alliance own, buy or sell securities which may be owned by, or bought or sold for, clients. Personal securities transactions by an employee may raise a potential conflict of interest when an employee owns or trades in a security that is owned or considered for purchase or sale by a client, or recommended for purchase or sale by an employee to a client. Subject to the reporting requirements and other limitations of its Code of Business Conduct and Ethics, Alliance permits its employees to engage in personal securities transactions, and also allows them to acquire investments in the AllianceBernstein Mutual Funds through direct purchase, 401(k)/profit sharing plan investment and/or notionally in connection with deferred incentive compensation awards. Alliance's Code of Ethics and Business Conduct requires disclosure of all personal accounts and maintenance of brokerage accounts with designated broker-dealers approved by Alliance. The Code also requires preclearance of all securities transactions and imposes a one-year holding period for securities purchased by employees to discourage short-term trading. 10 MANAGING MULTIPLE ACCOUNTS FOR MULTIPLE CLIENTS Alliance has compliance policies and oversight monitoring in place to address conflicts of interest relating to the management of multiple accounts for multiple clients. Conflicts of interest may arise when an investment professional has responsibilities for the investments of more than one account because the investment professional may be unable to devote equal time and attention to each account. The investment professional or investment professional teams for each client may have responsibilities for managing all or a portion of the investments of multiple accounts with a common investment strategy, including other registered investment companies, unregistered investment vehicles, such as hedge funds, pension plans, separate accounts, collective trusts and charitable foundations. Among other things, Alliance's policies and procedures provide for the prompt dissemination to investment professionals of initial or changed investment recommendations by analysts so that investment professionals are better able to develop investment strategies for all accounts they manage. In addition, investment decisions by investment professionals are reviewed for the purpose of maintaining uniformity among similar accounts and ensuring that accounts are treated equitably. No investment professional that manages client accounts carrying performance fees is compensated directly or specifically for the performance of those accounts. Investment professional compensation reflects a broad contribution in multiple dimensions to long-term investment success for our clients and is not tied specifically to the performance of any particular client's account, nor is it directly tied to the level or change in level of assets under management. ALLOCATING INVESTMENT OPPORTUNITIES Alliance has policies and procedures intended to address conflicts of interest relating to the allocation of investment opportunities. These policies and procedures are designed to ensure that information relevant to investment decisions is disseminated promptly within its portfolio management teams and investment opportunities are allocated equitably among different clients. The investment professionals at Alliance routinely are required to select and allocate investment opportunities among accounts. Portfolio holdings, position sizes, and industry and sector exposures tend to be similar across similar accounts, which minimizes the potential for conflicts of interest relating to the allocation of investment opportunities. Nevertheless, investment opportunities may be allocated differently among accounts due to the particular characteristics of an account, such as size of the account, cash position, tax status, risk tolerance and investment restrictions or for other reasons. Alliance's procedures are also designed to prevent potential conflicts of interest that may arise when Alliance has a particular financial incentive, such as a performance-based management fee, relating to an account. An investment professional may perceive that he or she has an incentive to devote more time to developing and analyzing investment strategies and opportunities or allocating securities preferentially to accounts for which Alliance could share in investment gains. To address these conflicts of interest, Alliance's policies and procedures require, among other things, the prompt dissemination to investment professionals of any initial or changed investment recommendations by analysts; the aggregation of orders to facilitate best execution for all accounts; price averaging for all aggregated orders; objective allocation for limited investment opportunities (e.g., on a rotational basis) to ensure fair and equitable allocation among accounts; and limitations on short sales of securities. These procedures also require documentation and review of justifications for any decisions to make investments only for select accounts or in a manner disproportionate to the size of the account. PORTFOLIO MANAGER COMPENSATION Alliance's compensation program for investment professionals is designed to be competitive and effective in order to attract and retain the highest caliber employees. The compensation program for investment professionals is designed to reflect their ability to generate long-term investment success for our clients, including shareholders of the AllianceBernstein Mutual Funds. Investment professionals do not receive any direct compensation based upon the investment returns of any individual client account, nor is compensation tied directly to the level or change in level of assets under management. Investment professionals' annual compensation is comprised of the following: FIXED BASE SALARY This is generally the smallest portion of compensation. The base salary is a relatively low, fixed salary within a similar range for all investment professionals. The base salary is determined at the outset of employment based on level of experience, does not change significantly from year-to-year and hence, is not particularly sensitive to performance. DISCRETIONARY INCENTIVE COMPENSATION IN THE FORM OF AN ANNUAL CASH BONUS Alliance's overall profitability determines the total amount of incentive compensation available to investment professionals. This portion of compensation is determined subjectively based on qualitative and quantitative factors. In evaluating this component of an investment professional's compensation, Alliance considers the contribution to his/her team or discipline as it relates to that team's overall contribution to the long-term investment success, business results and strategy of Alliance. Quantitative factors considered include, among other things, relative investment performance (e.g., by comparison to competitor or peer group funds or similar styles of investments, and appropriate, broad-based or specific market indices), and consistency of performance. There are no specific formulas used to determine this part of an investment professional's compensation and the compensation is not tied to any pre-determined or specified level of performance. Alliance also considers qualitative factors such as the complexity and risk of investment strategies involved in the style or type of assets managed by the investment professional; success of marketing/business development efforts and client servicing; seniority/ length of service with the firm; management and supervisory responsibilities; and fulfillment of Alliance's leadership criteria. DISCRETIONARY INCENTIVE COMPENSATION IN THE FORM OF AWARDS UNDER ALLIANCE'S PARTNERS COMPENSATION PLAN ("DEFERRED AWARDS"): Alliance's overall profitability determines the total amount of deferred awards available to investment professionals. The deferred awards are 11 allocated among investment professionals based on criteria similar to those used to determine the annual cash bonus. There is no fixed formula for determining these amounts. Deferred awards, for which there are various investment options, vest over a four-year period and are generally forfeited if the employee resigns or Alliance terminates his/ her employment. Investment options under the deferred awards plan include many of the same AllianceBernstein Mutual Funds offered to mutual fund investors, thereby creating a close alignment between the financial interests of the investment professionals and those of Alliance's clients and mutual fund shareholders with respect to the performance of those mutual funds. Alliance also permits deferred award recipients to allocate up to 50% of their award to investments in Alliance's publicly traded equity securities.* CONTRIBUTIONS UNDER ALLIANCE'S PROFIT SHARING/401(K) PLAN The contributions are based on Alliance's overall profitability. The amount and allocation of the contributions are determined at the sole discretion of Alliance. DISTRIBUTION OF THE CONTRACTS Pursuant to a Distribution and Servicing Agreement between AXA Advisors, AXA Equitable, and certain of AXA Equitable's separate accounts, AXA Equitable paid AXA Advisors a fee of $325,380 for each of the years 2005, 2004 and 2003. AXA Equitable paid AXA Advisors as the distributor of certain contracts, including these contracts, and as the principal underwriter of several AXA Equitable separate accounts $588,734,659 in 2005, $567,991,463 in 2004 and $562,696,578 in 2003 . Of these amounts, AXA Advisors retained $293,075,553, $289,050,171 and $287,344,634, respectively. CUSTODIAN AND INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM JPMorgan Chase Bank, N.A. is the custodian for the shares of the Trusts owned by Separate Account Nos. 3, 4, 10 and 13. There is no custodian for the shares of the Trusts owned by Separate Account No. 66. The financial statements of each separate account at December 31, 2005 and for each of the two years in the period ended December 31, 2005, and the consolidated financial statements of AXA Equitable at December 31, 2005 and 2004 and for each of the three years in the period ended December 31, 2005 are included in this SAI in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting. The consolidated financial statements of AXA Equitable at December 31, 2005 and 2004 and for each of the three years in the period ended December 31, 2005 are also included in this SAI in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the consolidated financial statements of AllianceBernstein L.P. and on the financial statements of AllianceBernstein Holding L.P. (together, "Alliance") as of December 31, 2005 and 2004 and for each of the years in the three year period ended December 31, 2005, and on the reports of KPMG LLP on Alliance management's assessment of the effectiveness of internal control over financial reporting as of December 31, 2005 and the effectiveness of internal control over financial reporting as of December 31, 2005. The reports are given on the authority of said firm as experts in auditing and accounting. KPMG LLP was Alliance's independent registered public accounting firm for each of the years in the three year period ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as Alliance's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. PricewaterhouseCoopers LLP provides independent audit services and certain other non-audit services to AXA Equitable as permitted by the applicable SEC independence rules, and as disclosed in AXA Equitable's Form 10-K. PricewaterhouseCoopers LLP's address is 300 Madison Avenue, New York, New York 10017. ---------------------- * Prior to 2002, investment professional compensation also included discretionary long-term incentive in the form of restricted grants of Alliance Capital's Master Limited Partnership Units. 12 AXA EQUITABLE We are managed by a Board of Directors which is elected by our shareholder(s). Our directors and certain of our executive officers and their principal occupations are as follows. Unless otherwise indicated, the following persons have been involved in the management of AXA Equitable and/or its affiliates in various executive positions during the last five years. DIRECTORS
------------------------------------------------------------------------------------------------------------------------------------ Name and Principal Business Address Business Experience Within Past Five Years ------------------------------------------------------------------------------------------------------------------------------------ Henri de Castries Director, MONY Life and MONY America (since July 2004); Director of AXA Equitable (since AXA September 1993); Chairman of the Board of AXA Financial (since April 1998); Vice Chairman 25, Avenue Matignon (February 1996 to April 1998). Chairman of the Management Board (since May 2001) and Chief 75008 Paris, France Executive Officer of AXA (January 2000 to May 2002); Vice Chairman of AXA's Management Board (January 2000 to May 2001). Director or officer of various subsidiaries and affiliates of the AXA Group. Director of Alliance Capital Management Corporation, the general partner of Alliance Holding and Alliance. A former Director of Donaldson, Lufkin and Jenrette ("DLJ") (July 1993 to November 2000). ------------------------------------------------------------------------------------------------------------------------------------ Denis Duverne Director, MONY Life and MONY America (since July 2004); Director of AXA Equitable (since AXA February 1998). Member of the AXA Management Board (since February 2003) and Chief Financial 25, Avenue Matignon Officer (since May 2003), prior thereto, Executive Vice President, Control and Strategy, AXA 75008 Paris, France (January 2000 to May 2003); prior thereto Senior Executive Vice President, International (US-UK-Benelux) AXA (January 1997 to January 2000); Member of the AXA Executive Committee (since January 2000); Director, AXA Financial (since November 2003), Alliance Capital Management Corporation (since February 1996) and various AXA affiliated companies. Former Director of DLJ (February 1997 to November 2000). ------------------------------------------------------------------------------------------------------------------------------------ Mary (Nina) Henderson Director, MONY Life and MONY America (since July 2004); Retired Corporate Vice President, Henderson Advisory Consulting Core Business Development of Bestfoods (June 1999 to December 2000). Prior thereto, 425 East 86th St. President, Bestfoods Grocery (formerly CPC International, Inc.) and Vice President, New York, NY 10028 Bestfoods (1997 to 2000). Director, Del Monte Foods Co., PACTIV Corporation and The "Shell" Transport and Trading Company, plc.; Former Director, Hunt Corporation (1992 to 2002); Director, AXA Financial and AXA Equitable (since December 1996). ------------------------------------------------------------------------------------------------------------------------------------ James F. Higgins Director, MONY Life and MONY America (since July 2004); Director of AXA Equitable (since Morgan Stanley December 2002). Senior Advisor, Morgan Stanley (since June 2000); Director/Trustee, Morgan Harborside Financial Center Stanley Funds (since June 2000); Director, AXA Financial (since December 2002); President Plaza Two, Second Floor and Chief Operating Officer -- Individual Investor Group, Morgan Stanley Dean Witter (June Jersey City, NJ 07311 1997 to June 2000); President and Chief Operating Officer -- Dean Witter Securities, Dean Witter Discover & Co. (1993 to May 1997); Director and Chairman of the Executive Committee, Georgetown University Board of Regents; Director, The American Ireland Fund; Member; and a member of The American Association of Sovereign Military Order of Malta. ------------------------------------------------------------------------------------------------------------------------------------ W. Edwin Jarmain Director, MONY Life and MONY America (since July 2004); Director of AXA Equitable (since Jarmain Group Inc. July 1992). President, Jarmain Group Inc. (since 1979); and officer of director of several 77 King Street West affiliated companies. Director, AXA Insurance (Canada), Anglo Canada General Insurance Suite 4545 Company, Alliance Capital Management Corporation, AXA Pacific Insurance Company and AXA Toronto, Ontario M5K 1K2 Australia, a former Alternate Director, AXA Asia Pacific Holdings Limited (December 1999 to Canada September 2000) and a former Director of DLJ (October 1992 to November 2000). Director of AXA Financial (since July 1992). ------------------------------------------------------------------------------------------------------------------------------------ Christina M. Johnson Director, MONY Life and MONY America (since July 2004); Director of AXA Equitable (since Christina Johnson and Associates September 2002). Former President and Chief Executive Officer of Saks Fifth Avenue 200 Railroad Ave. Enterprises (February 2001 to October 2003); President and Chief Executive Officer, Saks Greenwich, CT 06830 Fifth Avenue (February 2000 to February 2001); Director, AXA Financial (since September 2002); Director, Women In Need, Inc.; Regional Vice President for the Greater New York Area, National Italian American Foundation. ------------------------------------------------------------------------------------------------------------------------------------
13 DIRECTORS (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ Name and Principal Business Address Business Experience Within Past Five Years ------------------------------------------------------------------------------------------------------------------------------------ Scott D. Miller Director, MONY Life and MONY America (since July 2004); Director of AXA Equitable (since Six Sigma Academy September 2002). Chief Executive Officer, (since February 2005) of Six Sigma Academy. Prior 315 East Hopkins Street thereto, President (May 2004 to February 2005). Prior thereto, Vice Chairman (March 2003 to Aspen, CO 81611 May 2004) , Hyatt Hotels Corporation; President (January 2000 to March 2003); Director, AXA Financial (since September 2002); Director, Schindler Holdings, Ltd. (since January 2002), NAVTEQ (since May 2004); Director, Interval International (January 1998 to June 2003); Executive Vice President, Hyatt Development Corporation (1997 to 2000). ------------------------------------------------------------------------------------------------------------------------------------ Joseph H. Moglia Director, MONY Life and MONY America (since July 2004); Director of AXA Equitable (since Ameritrade Holding Corporation November 2002). Chief Executive Officer, Ameritrade Holding Corporation (since March 2001); 4211 South 102nd Street Director, AXA Financial (since November 2002); Senior Vice President, Merrill Lynch & Co., Omaha, NE 68127 Inc. (1984 to March 2001). ------------------------------------------------------------------------------------------------------------------------------------ Peter J. Tobin Director, MONY Life and MONY America (since July 2004); Director of AXA Equitable (since 1 Briarwood Lane March 1999); Special Assistant to the President, St. John's University (September 2003 to Denville, NJ 07834 June 2005); prior thereto, Dean, Peter J. Tobin College of Business, St. John's University (August 1998 to September 2003). Director, Alliance Capital Management Corporation (since May 2000); The CIT Group, Inc. (May 1984 to June 2001, June 2002 to present), H. W. Wilson Company and Junior Achievement of New York, Inc. and Member and Officer of Rock Valley Tool, LLC. Director of AXA Financial (since March 1999) and Director, P.A. Consulting (since 1999). ------------------------------------------------------------------------------------------------------------------------------------ Bruce W. Calvert Director, MONY Life and MONY America (since July 2004); Director of AXA Equitable (since May 78 Pine Street 2001); Director (October 1992 to December 2004), Chairman of the Board (May 2001 to December New Canaan, CT 06840 2004) and Chief Executive Officer (January 1999 to June 2003), Alliance Capital Management Corporation; Vice Chairman (May 1993 to April 2001) and Chief Investment Officer (May 1993 to January 1999), Alliance Capital Management Corporation; Director, AXA Financial (since May 2001); Vice Chairman of the Board of Trustees of Colgate University; Trustee of the Mike Wolk Heart Foundation; Member of the Investment Committee of the New York Community Trust. ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS -- DIRECTORS
------------------------------------------------------------------------------------------------------------------------------------ Name and Principal Business Address Business Experience Within Past Five Years ------------------------------------------------------------------------------------------------------------------------------------ Christopher M. Condron Director, Chairman of the Board, President (July 2004 to September 2005, February 2006 to present) and Chief Executive Officer, MONY Life and MONY America (since July 2004); Chairman of the Board, President (July 2004 to September 2005) and Chief Executive Officer, MONY Holdings, LLC (since July 2004); Director, Chairman of the Board, President (May 2002 to September 2005, February 2006 to present) and Chief Executive Officer, AXA Equitable (since May 2001); Director, President and Chief Executive Officer, AXA Financial (since May 2001); Chairman of the Board, President (May 2001 to September 2005, February 2006 to present) and Chief Executive Officer (AXA Financial Services, LLC (since May 2001); Member of AXA's Management Board (since May 2001); Director (since May 2004) and President (since September 2005), AXA America Holdings, Inc.; Director, Alliance Capital Management Corporation (since May 2001); Director, Chairman of the Board, President (June 2001 to September 2005, January 2006 to present) and Chief Executive Officer, AXA Life and Annuity Company (since June 2001); Director, The Advest Group, Inc. (July 2004 to December 2005); Director and Treasurer, The American Ireland Fund (since 1999); Board of Trustees of The University of Scranton (1995 to 2002); Former Member of the Investment Company Institute's Board of Governors (October 2001 to 2005); prior thereto, October 1997 to October 2000) and Executive Committee (1998 to 2000); Former Trustee of The University of Pittsburgh; Former Director, St. Sebastian Country Day School (1990 to June 2005); Former Director, the Massachusetts Bankers Association; President and Chief Operating Officer, Mellon Financial Corporation (1999 to 2001); Chairman and Chief Executive Officer, Dreyfus Corporation (1995 to 2001). ------------------------------------------------------------------------------------------------------------------------------------
14 OFFICERS -- DIRECTORS (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ Name and Principal Business Address Business Experience Within Past Five Years ------------------------------------------------------------------------------------------------------------------------------------ Stanley B. Tulin Director, Vice Chairman of the Board and Chief Financial Officer, MONY Life and MONY America (since July 2004); Vice Chairman of the Board and Chief Financial Officer, MONY Holdings, LLC (since July 2004); Director, Vice Chairman of the Board (since February 1998) and Chief Financial Officer (since May 1996), AXA Equitable. Director (since November 2003), Vice Chairman of the Board (since November 1999) and Chief Financial Officer (since May 1997) and prior thereto, Executive Vice President (May 1996 to November 1999), Senior Executive Vice President (February 1998 to November 1999), AXA Financial; Executive Vice President, Member of the Executive Committee and Management Board of AXA. Director, Vice Chairman and Chief Financial Officer (since December 1999) AXA Life and Annuity Company; AXA Financial Services, LLC and AXA Distribution Holding Corp. (since September 1999). Director (since May 2004) and Executive Vice President (since September 2005), AXA America Holdings, Inc. Director, Chairman of U.S. Financial Life Insurance Company (Sept. 2004 to present); Director, The Advest Group, Inc. (July 2004 to December 2005). Director, Alliance Capital Management Corporation (since July 1997). Formerly a Director of DLJ (from June 1997 to November 2000). Prior thereto, Co-Chairman, Insurance Consulting and Actuarial Practice, Coopers & Lybrand, L.L.P. ------------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
------------------------------------------------------------------------------------------------------------------------------------ Name and Principal Business Address Business Experience Within Past Five Years ------------------------------------------------------------------------------------------------------------------------------------ Leon B. Billis Executive Vice President and AXA Group Deputy Chief Information Officer, MONY Life and MONY America (since July 2004); Executive Vice President (since February 1998) and AXA Group Deputy Chief Information Officer (since February 2001); AXA Equitable and AXA Financial Services, LLC (since September 1999). Director, President and Chief Executive Officer, AXA Technology Services (since 2002); prior thereto, Chief Information Officer (November 1994 to February 2001). Previously held other officerships with AXA Equitable. ------------------------------------------------------------------------------------------------------------------------------------ Jennifer Blevins Executive Vice President, MONY Life and MONY America (since July 2004); Executive Vice President (since January 2002), AXA Equitable; Executive Vice President (since January 2002), AXA Financial Services, LLC; prior thereto, Senior Vice President and Managing Director, Worldwide Human Resources, Chubb and Son, Inc. (1999 to 2001); Senior Vice President and Deputy Director of Worldwide Human Resources, Chubb and Son, Inc. (1998 to 1999). ------------------------------------------------------------------------------------------------------------------------------------ Harvey Blitz Senior Vice President (since July 2004) MONY Life and MONY America; Senior Vice President (September 1987 to present) AXA Equitable; Senior Vice President (since July 1992) AXA Financial, Inc.; Senior Vice President (since September 1999) AXA Financial Services, LLC; Senior Vice President, AXA America Holdings, Inc. (since September 2005); Senior Vice President (since December 1999) AXA Life and Annuity Company; Director (since June 2003) and Chairman of the Board (June 2003 to March 2005) Frontier Trust Company, FSB ("Frontier"); Director (since July 1999) AXA Advisors LLC; Senior Vice President (since July 1999) and former Director (July 1999 until July 2004) AXA Network, LLC (formerly EquiSource); Director and Officer of various AXA Equitable affiliates. ------------------------------------------------------------------------------------------------------------------------------------
15 OTHER OFFICERS (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ Name and Principal Business Address Business Experience Within Past Five Years ------------------------------------------------------------------------------------------------------------------------------------ Kevin R. Byrne Senior Vice President and Treasurer (July 2004 to present), and Chief Investment Officer (September 2004 to present), MONY Financial Services, Inc., MONY Holdings, LLC., MONY Life Insurance Company and MONY Life Insurance Company of America. Senior Vice President (July 1997 to present), Treasurer (September 1993 to present) and Chief Investment Officer (September 2004 to present), and prior thereto, Vice President (February 1989 to July 1997), Deputy Treasurer (until September 1993), AXA Equitable. Senior Vice President (September 1997 to present), Treasurer (September 1993 to present) and Chief Investment Officer (September 2004 to present), and prior thereto, Vice President (May 1992 to September 1997) and Assistant Treasurer (May 1992 to September 1993), AXA Financial, Inc. Senior Vice President and Treasurer (since September 1999) and Chief Investment Officer (since September 2004), AXA Financial Services, LLC. Senior Vice President (since September 2005), AXA America Holdings, Inc. Director (July 2004 to December 2005), The Advest Group, Inc. and Boston Advisors, Inc. Director, Chairman of the Board and President (since July 2004), MONY Capital Management, Inc. Director, Senior Vice President and Treasurer (since July 2004), MONY Benefits Management Corp. Director and Chairman of the Board (July 2004 to May 2005), Matrix Private Equities, Inc. and Matrix Capital Markets Group, Inc. Director and Treasurer (since July 2004), 1740 Advisers, Inc. Director, Executive Vice President and Treasurer (since July 2004), MONY Asset Management, Inc., and MONY Agricultural Investment Advisers, Inc. President and Treasurer (since October 2004), MONY International Holdings, LLC. Director, President and Treasurer (since November 2004), MONY Life Insurance Company of the Americas, Ltd. and MONY Bank & Trust Company of the Americas, Ltd. Director and Deputy Treasurer (since December 2001), AXA Technology Services. Senior Vice President, Chief Investment Officer (since September 2004) and Treasurer (since December 1997), AXA Life & Annuity Company. Treasurer, Frontier Trust Company, FSB (since June 2000); and AXA Network, LLC (since December 1999). Director (since July 1998), Chairman (since August 2000), and Chief Executive Officer (since September 1997), Equitable Casualty Insurance Company. Senior Vice President and Treasurer, AXA Distribution Holding Corporation (since November 1999); and AXA Advisors, LLC (since December 2001). Director, Chairman, President and Chief Executive Officer (August 1997 to June 2002), Equitable JV Holding Corporation. Director (since July 1997), and Senior Vice President and Chief Financial Officer (since April 1998), ACMC, Inc. Director, President and Chief Executive Officer (since December 2003), AXA Financial (Bermuda) Ltd. Treasurer (November 2000 to December 2003), Paramount Planners, LLC. Vice President and Treasurer (March 1997 to December 2002) EQ Advisors Trust. Director (July 1997 to May 2001) and President and CEO (August 1997 to May 2001), EQ Services, Inc. Director, AXA Alternative Advisors, Inc. (formerly AXA Global Structured Products); Director, Executive Vice President and Treasurer (July 2004 to February 2005), MONY Realty Capital, Inc. and MONY Realty Partners, Inc, ------------------------------------------------------------------------------------------------------------------------------------ Richard Dziadzio Executive Vice President (July 2004 to present) and Deputy Chief Financial Officer (since September 2005) of MONY Life Insurance Company and MONY Life Insurance Company of America. Executive Vice President (September 2004 to present) and Deputy Chief Financial Officer (since September 2005) AXA Equitable. Executive Vice President and Deputy Chief Financial Officer (since September 2005), AXA Financial, Inc. Executive Vice President (September 2004 to present) and Deputy Chief Financial Officer (since September 2005) of AXA Financial Services, LLC; Director (July 2004 to present) of AXA Advisors, LLC. Director (July 2004 to December 2005) of The Advest Group, Inc.; Director (July 2004 to present) of MONY Capital Management, Inc., and MONY Agricultural Investment Advisers, Inc.; Director (July 2004 to May 2005) of Matrix Capital Markets Group, Inc. and Matrix Private Equities, Inc.; Director (July 2004 to present) of MONY Securities Corporation; Director (July 2004 to present) of 1740 Advisers, Inc. Director (November 2004 to present) of Frontier Trust Company, FSB; Director (July 2004 to February 2005), MONY Realty Capital, Inc. and MONY Realty Partners, Inc. Business Support and Development (February 2001 to June 2004) of GIE AXA; Head of Finance Administration (November 1998 to February 2001) of AXA Real Estate Investment Managers. ------------------------------------------------------------------------------------------------------------------------------------ Mary Beth Farrell Executive Vice President, MONY Life and MONY America (since July 2004); Executive Vice President (since December 2001), AXA Equitable; prior thereto, Senior Vice President (December 1999 to December 2001); Senior Vice President and Controller, GreenPoint Financial/GreenPoint Bank (May 1994 to November 1999); Executive Vice President (since December 2001), AXA Financial Services, LLC. ------------------------------------------------------------------------------------------------------------------------------------
16 OTHER OFFICERS (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ Name and Principal Business Address Business Experience Within Past Five Years ------------------------------------------------------------------------------------------------------------------------------------ Stuart L. Faust Senior Vice President and Deputy General Counsel, MONY Life and MONY America (since July 2004); Senior Vice President and Deputy General Counsel, MONY Holdings, LLC and MONY Financial Services, Inc. (since July 2004); Senior Vice President (since September 1997) and Deputy General Counsel (since November 1999), AXA Equitable; prior thereto, Senior Vice President and Associate General Counsel (September 1997 to October 1999); Senior Vice President and Deputy General Counsel (September 2001 to present), AXA Financial; Senior Vice President (since September 1999) and Deputy General Counsel (since November 1999), AXA Financial Services, LLC. Senior Vice President and Deputy General Counsel, AXA Life and Annuity Company. ------------------------------------------------------------------------------------------------------------------------------------ Alvin H. Fenichel Senior Vice President and Controller, MONY Life and MONY America (since July 2004); Senior Vice President and Controller, AXA Equitable, AXA Financial, AXA Financial Services, LLC, MONY Holdings, LLC and MONY Financial Services, Inc. Senior Vice President and Controller, AXA Life and Annuity Company (since December 1999). Previously held other officerships with AXA Equitable and its affiliates. ------------------------------------------------------------------------------------------------------------------------------------ Paul J. Flora Senior Vice President and Auditor (since July 2004) of MONY Financial Services, Inc., MONY Holdings, LLC, MONY Life and MONY America. Senior Vice President (since March 1996) and Auditor (since September 1994) AXA Equitable. Senior Vice President (since March 1996) and Auditor (since September 1994), AXA Financial, Inc.; prior thereto, Vice President and Auditor (September 1984 to March 1996). Senior Vice President and Auditor (since September 1999) AXA Financial Services, LLC. ------------------------------------------------------------------------------------------------------------------------------------ Barbara Goodstein Executive Vice President (since July 2005), MONY Life, MONY America and AXA Financial Services, LLC. Executive Vice President (since July 2005), AXA Equitable. Director (since November 2005), AXA Advisors, LLC. Senior Vice President (September 2001 to January 2005), JP Morgan Chase; President and Chief Executive Officer (February 1998 to August 2001), Instinet.com. ------------------------------------------------------------------------------------------------------------------------------------ James D. Goodwin Senior Vice President (July 2004 to present) of MONY Life and MONY America. Senior Vice President (February 2001 to present) AXA Equitable. Senior Vice President (February 2001 to present) of AXA Financial Services, LLC; Senior Vice President (April 2002 to present) of AXA Advisors, LLC; Vice President (July 2000 to present) of AXA Network, LLC, AXA Network of Alabama, LLC, AXA Network of Connecticut, Maine and New York, LLC and AXA Network Insurance Agency of Massachusetts, LLC; Vice President (July 2004 to present) of MONY Brokerage, Inc., MBI Insurance Agency of Alabama, Inc., MBI Insurance Agency of Massachusetts, Inc., MBI Insurance Agency of New Mexico, Inc., MBI Insurance Agency of Ohio, Inc. and MBI Insurance Agency of Washington, Inc. ------------------------------------------------------------------------------------------------------------------------------------ Jeffrey Green Senior Vice President (since July 2004) of MONY Life and MONY America. Senior Vice President (September 2002 to present) AXA Equitable. Senior Vice President (since September 2002) of AXA Financial Services, LLC; Director, President and Chief Operating Officer (since November 2002) AXA Network, LLC; Senior Vice President (since October 2002) AXA Advisors, LLC. Director, President and Chief Operating Officer (since July 2004), MONY Brokerage, Inc. and its subsidiaries. Senior Vice President, Product Manager of Solomon Smith Barney (1996 to September 2002). ------------------------------------------------------------------------------------------------------------------------------------ Edward J. Hayes Senior Vice President (July 2004 to present) of MONY Life and MONY America. Senior Vice President (February 1997 to present) AXA Equitable. Senior Vice President (February 1997 to present) of AXA Financial Services, LLC; Executive Vice President (August 1999 to present) of AXA Advisors, LLC; Director and President (December 1996 to present) of Equitable Structured Settlement Corporation. ------------------------------------------------------------------------------------------------------------------------------------ Karen Field Hazin Vice President, Secretary and Associate General Counsel (since June 2005), MONY Life, MONY America and AXA Financial Services, LLC. Vice President, Secretary and Associate General Counsel (since June 2005), AXA Equitable; prior thereto, Counsel (April 2005 to June 2005), Assistant Vice President and Counsel (December 2001 to June 2003), Counsel (December 1996 to December 2001). Vice President, Secretary and Associate General Counsel (since June 2005), AXA Financial, Inc. Vice President and Secretary (since September 2005), AXA America Holdings, Inc. Vice President, Secretary and Associate General Counsel (since June 2005), AXA Life and Annuity Company. Vice President, Secretary and Associate General Counsel (since June 2005), AXA Distribution Holding Corporation. Vice President, Secretary and Associate General Counsel (since June 2005), MONY Holdings, LLC. ------------------------------------------------------------------------------------------------------------------------------------
17 OTHER OFFICERS (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ Name and Principal Business Address Business Experience Within Past Five Years ------------------------------------------------------------------------------------------------------------------------------------ Gary W. Hirschkron Senior Vice President, MONY Life and MONY America (since July 2004); Senior Vice President, AXA Equitable (since September 2002), Senior Vice President, AXA Financial Services, LLC (since September 2002); prior thereto, Managing Director, Management Compensation Group Northwest, LLC (1983 to September 2002). ------------------------------------------------------------------------------------------------------------------------------------ Robert S. Jones, Jr. Executive Vice President, MONY Life and MONY America (since July 2004); Executive Vice President, AXA Equitable (since February 2004); Executive Vice President, AXA Financial Services, LLC (since February 2004); Director (since December 2003) and Chairman of the Board (since July 2004) prior thereto Co-President and Co-Chief Executive Officer (December 2003 to July 2004), AXA Advisors, LLC; Director and Chairman of the Board (since July 2004); prior thereto, President -- Retail Division (December 2003 to July 2004), AXA Network, LLC. Director and Chairman of the Board (since July 2004), MONY Brokerage, Inc. and its subsidiaries. Regional President of the New York Metro Region (March 2000 to January 2001), Co-General Manager of the Jones/Sages Agency (January 1995 to March 2000). ------------------------------------------------------------------------------------------------------------------------------------ Andrew McMahon Executive Vice President (since September 2005), MONY Life, MONY America and AXA Financial Services, LLC; prior thereto, Senior Vice President (March 2005 to September 2005). Executive Vice President (since September 2005), AXA Equitable; prior thereto, Senior Vice President (March 2005 to September 2005). Director and Vice Chairman of the Board (since December 2005), AXA Network, LLC, AXA Network of Connecticut, Maine and New York, LLC, AXA Network Insurance Agency of Massachusetts, LLC. Director and Vice Chairman of the Board (since January 2006), MONY Brokerage, Inc and its subsidiaries. Partner (June 1997 to March 2005), McKinsey & Company. ------------------------------------------------------------------------------------------------------------------------------------ Charles A. Marino Senior Vice President (July 2004 to present) and Chief Actuary (since September 2005) of MONY Life and MONY America; Senior Vice President and Appointed Actuary (December 2004 to present) of U. S. Financial Life Insurance Company. Senior Vice President (September 2000 to present) and Chief Actuary (since September 2005), Actuary (May 1998 to September 2005) AXA Equitable. Senior Vice President (September 2000 to present) and and Chief Actuary (since September 2005), Actuary (September 1999 to September 2005) of AXA Financial Services, LLC. Director and Vice President (since December 2003) AXA Financial (Bermuda) Ltd. ------------------------------------------------------------------------------------------------------------------------------------ Kevin E. Murray Executive Vice President and Chief Information Officer (February 2005 to present) of MONY Life and MONY America. Executive Vice President and Chief Information Officer (February 2005 to present); prior thereto, Senior Vice President (September 2004 to February 2005) AXA Equitable. Senior Vice President (February 2005 to present) of AXA Financial Services, LLC. Senior Vice President / Group Chief Information Officer (1996 to September 2004) of AIG. ------------------------------------------------------------------------------------------------------------------------------------ Anthony C. Pasquale Senior Vice President (since July 2004) of MONY Life and MONY America. Senior Vice President (June 1991 to present) AXA Equitable. Senior Vice President (since September 1999) AXA Financial Services LLC. Director, Chairman and Chief Operating Officer, Casualty (September 1997 to August 2000). Director, EREIM LP Corp. (October 1997 to March 2001). ------------------------------------------------------------------------------------------------------------------------------------ Anthony F. Recine Senior Vice President, Chief Compliance Officer and Associate General Counsel (February 2005 to present) of MONY Life and MONY America. Senior Vice President, Chief Compliance Officer and Associate General Counsel (February 2005 to present) AXA Equitable. Senior Vice President, Chief Compliance Officer and Associate General Counsel (February 2005 to present) of AXA Financial Services, LLC. Vice President, Deputy General and Chief Litigation Counsel (2000 to February 2005) of The MONY Group; prior thereto, Vice President and Chief Litigation Counsel (1990 to 2000). ------------------------------------------------------------------------------------------------------------------------------------ James A. Shepherdson Executive Vice President (since September 2005), MONY Life, MONY America and AXA Financial Services, LLC. Executive Vice President (since September 2005), AXA Equitable. Director (since August 2005), AXA Advisors, LLC. Director, Chairman of the Board, President and Chief Executive Officer (since August 2005), AXA Distributors, LLC, AXA Distributors Insurance Agency, LLC, AXA Distributors Insurance Agency of Alabama, LLC, AXA Distributors Insurance Agency of Massachusetts, LLC. Chief Executive Officer (February 2003 to August 2005), John Hancock Financial Services / John Hancock Funds. Co-Chief Executive Officer (March 2000 to June 2002), Met Life Investors Group. ------------------------------------------------------------------------------------------------------------------------------------
18 OTHER OFFICERS (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ Name and Principal Business Address Business Experience Within Past Five Years ------------------------------------------------------------------------------------------------------------------------------------ Richard V. Silver Executive Vice President and General Counsel, MONY Life and MONY America (since July 2004); Executive Vice President and General Counsel, MONY Holdings, LLC (since July 2004); Executive Vice President (since September 2001) and General Counsel (since November 1999), AXA Equitable. Prior thereto, Senior Vice President (February 1995 to September 2001), Deputy General Counsel (October 1996 to November 1999). Executive Vice President and General Counsel (since September 2001), AXA Financial; prior thereto, Senior Vice President and Deputy General Counsel (October 1996 to September 2001). Executive Vice President (since September 2001) and General Counsel (since November 1999), AXA Financial Services, LLC. Executive Vice President (since September 2001) and General Counsel (since December 1999), AXA Life and Annuity Company. Director, Executive Vice President and General Counsel (since July 2004), MONY Financial Services, Inc. Previously, Director of AXA Advisors, LLC. ------------------------------------------------------------------------------------------------------------------------------------
19 -------------------------------------------------------------------------------- Retirement Investment Account(R) -------------------------------------------------------------------------------- SEPARATE ACCOUNT UNITS OF INTEREST UNDER GROUP ANNUITY CONTRACTS FUNDS -------------------------------------------------------------------------------- Pooled Separate Accounts o Alliance Balanced, Separate Account No. 10 -- Pooled o Alliance Bond, Separate Account No. 13 -- Pooled o Alliance Common Stock, Separate Account No. 4 -- Pooled o Alliance Mid Cap Growth, Separate Account No. 3 -- Pooled Separate Account No. 66 o AXA Premier VIP High Yield o AXA Premier VIP Technology o o EQ/Alliance Growth and Income o EQ/Alliance Intermediate Government Securities o EQ/Alliance International o EQ/Alliance Large Cap Growth o EQ/Alliance Quality Bond o EQ/Alliance Small Cap Growth o EQ/Bernstein Diversified Value o EQ/Calvert Socially Responsible o EQ/Capital Guardian Growth o EQ/Capital Guardian International o EQ/Capital Guardian Research o EQ/Capital Guardian U.S. Equity o EQ/Equity 500 Index o EQ/Evergreen Omega o EQ/FI Mid Cap o EQ/FI Mid Cap Value o EQ/Janus Large Cap Growth o EQ/JPMorgan Value Opportunities o EQ/Lazard Small Cap Value o EQ/Marsico Focus o EQ/Mercury Basic Value Equity o EQ/Mercury International Value o EQ/MFS Emerging Growth Companies o EQ/MFS Investors Trust o EQ/Money Market o EQ/Van Kampen Emerging Markets Equity OF AXA EQUITABLE LIFE INSURANCE COMPANY By phone: By regular mail (correspondence By registered, certified, or overnight and contribution checks): delivery (contribution checks only): 1-800-967-4560 AXA Equitable AXA Equitable (service consultants are available weekdays P.O. Box 8095 66 Brooks Drive 9 a.m. to 5 p.m. Eastern time) Boston, MA 02266-8095 Suite 8095 Braintree, MA 02184
20
------------------------------------------------------------------------------------------------------------------------------------ Financial statements index ------------------------------------------------------------------------------------------------------------------------------------ Page ------------------------------------------------------------------------------------------------------------------------------------ Separate Account Nos. 13 (Pooled), Report of Independent Registered Public Accounting Firm ............................... FSA-1 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 (Pooled) ------------------------------------------------------------------------------------------------------------------------------------ Separate Account No. 13 (Pooled) Statement of Assets and Liabilities, December 31, 2005 ................................ 2 ----------------------------------------------------------------------------------------------- Statement of Operations for the Year Ended December 31, 2005 .......................... 3 ----------------------------------------------------------------------------------------------- Statements of Changes in Net Assets for the Years Ended December 31, 2005 and 2004 ...................................................... 4 ----------------------------------------------------------------------------------------------- Portfolio of Investments, December 31, 2005 ........................................... 5 ------------------------------------------------------------------------------------------------------------------------------------ Separate Account No. 10 (Pooled) Statement of Assets and Liabilities, December 31, 2005 ................................ 9 ----------------------------------------------------------------------------------------------- Statement of Operations for the Year Ended December 31, 2005 .......................... 10 ----------------------------------------------------------------------------------------------- Statements of Changes in Net Assets for the Years Ended December 31, 2005 and 2004 ...................................................... 11 ----------------------------------------------------------------------------------------------- Portfolio of Investments, December 31, 2005 ........................................... 12 ------------------------------------------------------------------------------------------------------------------------------------ Separate Account No. 4 (Pooled) Statement of Assets and Liabilities, December 31, 2005 ................................ 20 ----------------------------------------------------------------------------------------------- Statement of Operations for the Year Ended December 31, 2005 .......................... 21 ----------------------------------------------------------------------------------------------- Statements of Changes in Net Assets for the Years Ended December 31, 2005 and 2004 ...................................................... 22 ----------------------------------------------------------------------------------------------- Portfolio of Investments, December 31, 2005 ........................................... 23 ------------------------------------------------------------------------------------------------------------------------------------ Separate Account No. 3 (Pooled) Statement of Assets and Liabilities, December 31, 2005 ................................ 25 ----------------------------------------------------------------------------------------------- Statements of Operations for the Year Ended December 31, 2005 ......................... 26 ----------------------------------------------------------------------------------------------- Statements of Changes in Net Assets for the Years Ended December 31, 2005 and 2004 ...................................................... 27 ----------------------------------------------------------------------------------------------- Portfolio of Investments, December 31, 2005 ........................................... 28 ------------------------------------------------------------------------------------------------------------------------------------ Separate Account No. 66 (Pooled) Statements of Assets and Liabilities, December 31, 2005 ............................... 30 ----------------------------------------------------------------------------------------------- Statements of Operations for the Year Ended December 31, 2005 ......................... 38 ----------------------------------------------------------------------------------------------- Statements of Changes in Net Assets for the Years Ended December 31, 2005 and 2004 ...................................................... 46 ------------------------------------------------------------------------------------------------------------------------------------ Separate Account Nos. 13 (Pooled), Notes to Financial Statements ......................................................... 56 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 (Pooled) ------------------------------------------------------------------------------------------------------------------------------------ AXA Equitable Life Reports of Independent Registered Public Accounting Firms -- .......................... F-1 Insurance Company ----------------------------------------------------------------------------------------------- Consolidated Balance Sheets as of December 31, 2005 and 2004 .......................... F-4 ----------------------------------------------------------------------------------------------- Consolidated Statements of Earnings for the Years Ended December 31, 2005, 2004 and 2003 ................................................ F-5 ----------------------------------------------------------------------------------------------- Consolidated Statements of Shareholder's Equity for the Years Ended December 31, 2005, 2004 and 2003 ................................................ F-6 ----------------------------------------------------------------------------------------------- Consolidated Statements of Cash Flows for the Years Ended December 31, 2005, 2004 and 2003 ................................................ F-7 ----------------------------------------------------------------------------------------------- Notes to Consolidated Financial Statements ............................................ F-9 ------------------------------------------------------------------------------------------------------------------------------------ The financial statements of the Funds reflect fees, charges and other expenses of the Separate Accounts applicable to contracts under RIA as in effect during the periods covered, as well as the expense charges made in accordance with the terms of all other contracts participating in the respective Funds. ------------------------------------------------------------------------------------------------------------------------------------
21 -------------------------------------------------------------------------------- Report of Independent Registered Public Accounting Firm To the Board of Directors of AXA Equitable Life Insurance Company and the Contractowners of Separate Account Nos. 13, 10, 4, 3, and 66 of AXA Equitable Life Insurance Company In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets present fairly, in all material respects, the financial position of Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company ("AXA Equitable") at December 31, 2005, the results of each of their operations for the year then ended and the changes in each of their net assets for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of AXA Equitable's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2005 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP New York, New York April 19, 2006 1 -------------------------------------------------------------------------------- Separate Account No. 13 (Pooled) of AXA Equitable Life Insurance Company
Statement of Assets and Liabilities December 31, 2005 --------------------------------------------------------------------------------------- Assets: Investments (Notes 2 and 3): Long-term debt securities - at value (amortized cost: $24,422,655)....... $24,280,507 Short-term debt securities - at value (amortized cost: $526,146) ........ 526,146 Cash ..................................................................... 716,650 Receivable for investment securities sold ................................ 1,023,072 Interest and other receivables ........................................... 281,286 --------------------------------------------------------------------------------------- Total assets ............................................................. 26,827,661 --------------------------------------------------------------------------------------- Liabilities: Due to AXA Equitable's General Account ................................... 21,902 Payable for investment securities purchased .............................. 1,578,574 Accrued expenses ......................................................... 42,604 --------------------------------------------------------------------------------------- Total liabilities ........................................................ 1,643,080 --------------------------------------------------------------------------------------- Net Assets Attributable to Contractowners or in Accumulation ............. $25,184,581 ======================================================================================= Units Outstanding Unit Values ----------------- ----------- Institutional ...................................... 2,945 $ 8,499.67 Momentum Strategy .................................. 608 135.11 RIA ................................................ 932 80.20
The accompanying notes are an integral part of these financial statements. 2 -------------------------------------------------------------------------------- Separate Account No. 13 (Pooled) of AXA Equitable Life Insurance Company
Statement of Operations Year Ended December 31, 2005 ----------------------------------------------------------------------------------- Investment Income (Note 2): -- Interest ............................... $1,035,859 ----------------------------------------------------------------------------------- Expenses (Note 5): Investment management fees ............................................ (251) Operating and expense charges ......................................... (58,222) ----------------------------------------------------------------------------------- Total expenses ........................................................ (58,473) ----------------------------------------------------------------------------------- Net investment income ................................................. 977,386 ----------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) on Investments (Note 2): Realized loss from security transactions .............................. (290,554) Change in unrealized appreciation/depreciation of investments ......... (347,670) ----------------------------------------------------------------------------------- Net realized and unrealized loss on investments ....................... (638,224) ----------------------------------------------------------------------------------- Net Increase in Net Assets Attributable to Operations ................. $ 339,162 ===================================================================================
The accompanying notes are an integral part of these financial statements. 3 -------------------------------------------------------------------------------- Separate Account No. 13 (Pooled) of AXA Equitable Life Insurance Company
Statements of Changes in Net Assets --------------------------------------------------------------------------------------------------------------------- Year Ended December 31, 2005 2004 --------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets: From Operations: Net investment income ............................................................. $ 977,386 $ 1,760,683 Net realized gain (loss) on investments ........................................... (290,554) 1,382,738 Change in unrealized appreciation/depreciation of investments ..................... (347,670) (3,065,326) ------------------------------------------------------------------------------------------------------------------- Net increase in net assets attributable to operations ............................. 339,162 78,095 ------------------------------------------------------------------------------------------------------------------- From Contributions and Withdrawals: Contributions ..................................................................... 6,128,591 21,397,113 Withdrawals ....................................................................... (6,118,690) (118,962,776) Asset management fees ............................................................. (109,523) (184,034) Administrative fees ............................................................... (767) (797) ------------------------------------------------------------------------------------------------------------------- Net decrease in net assets attributable to contributions and withdrawals .......... (100,389) (97,750,494) ------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets ................................................. 238,773 (97,672,399) Net Assets Attributable to Contractowners or in Accumulation - Beginning of Year .. 24,945,808 122,618,207 ------------------------------------------------------------------------------------------------------------------- Net Assets Attributable to Contractowners or in Accumulation - End of Year ........ $ 25,184,581 $ 24,945,808 ===================================================================================================================
The accompanying notes are an integral part of these financial statements. 4 -------------------------------------------------------------------------------- Separate Account No. 13 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 -------------------------------------------------------------------------- Principal Amount (000) U.S. $ Value -------------------------------------------------------------------------- LONG-TERM DEBT SECURITIES - 96.4% U.S. GOVERNMENT & GOVERNMENT SPONSORED AGENCY OBLIGATIONS - 46.7% U.S. Treasury Notes - 32.8% 2.00%, 7/15/14(TIPS) .............. $ 285 $ 299,480 3.88%, 7/31/07 - 9/15/10 .......... 2,679 2,634,776 4.25%, 10/31/07 - 8/15/15 ......... 4,950 4,923,546 4.50%, 11/15/15 ................... 395 398,240 ---------- 8,256,042 ---------- Federal National Mortgage Association - 13.9% 3.13%, 7/15/06 .................... 985 977,320 3.88%, 11/17/08 ................... 200 194,994 4.63%, 10/15/14 ................... 15 14,823 5.00%, 12/01/20 ................... 537 528,945 5.00%, TBA ........................ 390 377,569 5.00%, TBA ........................ 235 232,430 5.50%, 4/01/34 - 2/01/35 .......... 178 176,666 6.00%, 7/01/20 .................... 145 148,183 6.50%, TBA ........................ 840 861,525 ---------- 3,512,455 ---------- Total U.S. Government & Government Sponsored Agency Obligations ............... 11,768,498 ---------- CORPORATE DEBT OBLIGATIONS - 34.9% Aerospace & Defense - 0.1% Textron, Inc. 6.38%, 11/15/08 ................... 30 31,153 ---------- Automotive - 0.1% DaimlerChrysler North America Holdings Corp. 4.88%, 6/15/10 .................... 35 34,174 ---------- Banking - 3.5% Bank of America Corp. 4.50%, 8/01/10 .................... 210 206,365 JP Morgan Chase & Co. 6.75%, 2/01/11 .................... 220 235,637 UFJ Finance Aruba AEC 6.75%, 7/15/13 .................... 150 163,780 Wachovia Bank 3.50%, 8/15/08 .................... 155 149,773 Washington Mutual Finance Corp. 4.00%, 1/15/09 .................... 70 67,891 Wells Fargo & Co. 4.20%, 1/15/10 .................... 35 34,074 Zions Bancorp. 5.50%, 11/16/15 ................... 30 30,221 ---------- 887,741 ---------- Broadcasting/Media - 3.0% AOL Time Warner 6.88%, 5/01/12 .................... 155 164,994 British Sky Broadcasting Group PLC 5.63%, 10/15/15 ................... 80 79,630 News America Inc 4.75%, 3/15/10 .................... 85 83,718 Time Warner Entertainment Co. L.P. 7.25%, 9/01/08 .................... 375 392,507 WPP Finance Corp. 5.88%, 6/15/14 .................... 35 35,522 ---------- 756,371 ---------- Building/Real Estate - 0.2% iStar Financial, Inc. 5.15%, 3/01/12 .................... 25 24,211 Simon Property Group L.P. 6.38%, 11/15/07 ................... 35 35,765 ---------- 59,976 ---------- Cable - 1.1% British Sky Broadcasting Group PLC 6.88%, 2/23/09 .................... 10 10,476 Comcast Cable Communications, Inc. 6.88%, 6/15/09 .................... 90 94,530 Comcast Corp. 5.50%, 3/15/11 .................... 170 170,922 ---------- 275,928 ---------- Chemicals - 0.2% The Lubrizol Corp. 4.63%, 10/01/09 ................... 25 24,503 ProLogis 7.05%, 7/15/06 .................... 25 25,209 ---------- 49,712 ---------- Communications - 2.6% British Telecommunications PLC 8.38%, 12/15/10+ .................. 120 136,603 Deutsche Telekom International Finance BV 8.00%, 6/15/10+ ................... 40 45,351 Sprint Capital Corp. 7.63%, 1/30/11 .................... 175 192,978 Sprint Capital Corp. 6.00%, 1/15/07 .................... 145 146,418 Telecom Italia Capital 4.00%, 1/15/10 .................... 130 123,818 Verizon Global Funding Corp. 4.90%, 9/15/15 .................... 20 19,360 ---------- 664,528 ---------- 5 -------------------------------------------------------------------------------- Separate Account No. 13 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 (Continued) -------------------------------------------------------------------------- Principal Amount (000) U.S. $ Value -------------------------------------------------------------------------- Communications-Mobile - 1.1% AT&T Wireless Services, Inc. 7.35%, 3/01/06 ................ $ 35 $ 35,147 7.88%, 3/01/11 ................ 85 95,375 Cingular Wireless LLC 5.63%, 12/15/06 ............... 50 50,361 Telus Corp. 7.50%, 6/01/07 ................ 90 92,937 --------- 273,820 --------- Conglomerate/Miscellaneous - 0.4% Hutchison Whampoa International Ltd. 6.50%, 2/13/13 ................ 85 90,009 --------- Consumer Manufacturing - 0.3% Fortune Brands, Inc. 2.88%, 12/01/06 ............... 40 39,145 Textron Financial Corp. 4.13%, 3/03/08 ................ 45 44,308 --------- 83,453 --------- Energy - 2.0% Amerada Hess Corp. 6.65%, 8/15/11 ................ 165 177,301 Conoco, Inc. 6.35%, 10/15/11 ............... 105 112,505 Duke Energy Co. 7.88%, 8/16/10 ................ 20 22,119 Enterprise Products Operating L.P. 5.60%, 10/15/14 ............... 50 49,961 Valero Energy Corp. 6.88%, 4/15/12 ................ 125 136,204 --------- 498,090 --------- Financial - 9.7% American General Finance Corp. 4.63%, 5/15/09 ................ 150 148,495 Berkshire Hathaway Finance Corp. 4.20%, 12/15/10 ............... 65 62,928 Boeing Capital Corp. 4.75%, 8/25/08 ................ 50 49,866 Capital One Bank 6.50%, 6/13/13 ................ 60 63,746 CIT Group, Inc. 4.59%, 5/18/07+ ............... 55 55,149 7.75%, 4/02/12 ................ 100 113,413 Citigroup, Inc. 4.60%, 6/09/09+ ............... 35 35,070 4.63%, 8/03/10 ................ 100 98,615 5.00%, 9/15/14 ................ 241 237,230 Core Investment Grade Trust 4.66%, 11/30/07+ .............. 130 128,632 Countrywide Home Loans, Inc. 4.00%, 3/22/11 ................ 145 136,436 General Electric Capital Corp. 3.13%, 4/01/09 ................ 405 384,096 4.00%, 2/17/09 ................ 150 146,312 The Goldman Sachs Group, Inc. 4.75%, 7/15/13 ................ 170 164,895 Household Finance Corp. 6.50%, 11/15/08 ............... 195 202,951 7.00%, 5/15/12 ................ 85 92,979 MBNA Corp. 4.63%, 9/15/08 ................ 60 59,565 Merrill Lynch & Co., Inc. 4.79%, 8/04/10 ................ 80 79,100 Morgan Stanley Dean Witter 5.80%, 4/01/07 ................ 80 80,816 SLM Corp. 4.50%, 7/26/10 ................ 110 107,692 --------- 2,447,986 --------- Food/Beverages - 2.0% ConAgra Foods, Inc. 6.75%, 9/15/11 ................ 8 8,521 7.88%, 9/15/10 ................ 35 38,561 Gereral Mills, Inc. 5.13%, 2/15/07 ................ 160 159,863 Kraft Foods, Inc. 4.13%, 11/12/09 ............... 125 120,957 5.25%, 10/01/13 ............... 135 135,052 The Kroger Co. 7.80%, 8/15/07 ................ 50 51,947 --------- 514,901 --------- Health Care - 1.4% Aetna, Inc. 7.38%, 3/01/06 ................ 63 63,249 Humana Inc. 7.25%, 8/01/06 ................ 65 65,621 WellPoint, Inc. 3.50%, 9/01/07 ................ 70 68,284 3.75%, 12/14/07 ............... 14 13,689 4.25%, 12/15/09 ............... 80 77,923 Wyeth 5.50%, 2/01/14 ................ 51 51,661 --------- 340,427 --------- Insurance - 0.6% Assurant, Inc. 5.63%, 2/15/14 ................ 90 91,154 Liberty Mutual Group 5.75%, 3/15/14 ................ 45 44,419 6 -------------------------------------------------------------------------------- Separate Account No. 13 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 (Continued) ------------------------------------------------------------------------------- Principal Amount (000) U.S. $ Value ------------------------------------------------------------------------------- MetLife, Inc. 5.00%, 11/24/13 ....................... $ 5 $ 4,947 5.38%, 12/15/12 ....................... 20 20,416 --------- 160,936 --------- Metals/Mining - 0.1% Ispat Inland ULC 9.75%, 4/01/14 ........................ 15 16,987 --------- Paper/Packaging - 0.9% International Paper Co. 5.85%, 10/30/12 ....................... 90 91,320 Packaging Corp. of America 5.75%, 8/01/13 ........................ 45 44,194 Weyerhaeuser Co. 6.75%, 3/15/12 ........................ 95 100,832 --------- 236,346 --------- Public Utilities - Electric & Gas - 3.7% Carolina Power & Light Co. 6.50%, 7/15/12 ........................ 135 144,638 Consumers Energy Co. 4.25%, 4/15/08 ........................ 25 24,485 Duke Capital LLC 5.67%, 8/15/14 ........................ 55 55,469 FirstEnergy Corp. 6.45%, 11/15/11 ....................... 220 233,199 MidAmerican Energy Holdings Co. 5.88%, 10/01/12 ....................... 50 51,618 Nisource Finance Corp. 7.88%, 11/15/10 ....................... 80 88,638 Pacific Gas & Electric Co. 4.80%, 3/01/14 ........................ 90 87,707 Progress Energy, Inc. 7.10%, 3/01/11 ........................ 65 70,130 Public Service Company of Colorado 7.88%, 10/01/12 ....................... 45 52,387 Spi Electricity & Gas Australia Holdings Pty. Ltd. 6.15%, 11/15/13 ....................... 45 48,037 Xcel Energy, Inc. 7.00%, 12/01/10 ....................... 65 69,955 --------- 926,263 --------- Public Utilities - Telephone - 0.6% Telecom Italia Capital 5.25%, 11/15/13 ....................... 165 161,910 --------- Service - 0.5% Waste Management, Inc. 6.88%, 5/15/09 ........................ 115 121,251 --------- Supermarket/Drug - 0.5% Safeway, Inc. 4.80%, 7/16/07 ........................ 20 19,913 5.80%, 8/15/12 ........................ 90 90,459 6.50%, 3/01/11 ........................ 15 15,532 --------- 125,904 --------- Technology - 0.1% IBM Corp. 4.38%, 6/01/09 ........................ 20 19,749 Motorola, Inc. 7.63%, 11/15/10 ....................... 7 7,782 --------- 27,531 --------- Total Corporate Debt Obligations ......... 8,785,397 --------- COMMERCIAL MORTGAGE BACKED SECURITIES - 8.9% Banc America Commercial Mortgage, Inc. Series 2004-4 4.13%, 7/10/42 ........................ 80 77,688 Series 2004-6 4.16%, 12/10/42 ....................... 100 96,892 Series 2005-1 4.88%, 11/10/42 ....................... 100 99,240 Series 2004-3 5.30%, 6/10/39+ ....................... 170 173,189 Bear Stearns Commercial Mortgage Series 2005-PWR7 5.12%, 2/11/41+ ....................... 95 94,646 CS First Boston Mortgage Securities Corp. Series 2003-CK2 3.86%, 3/15/36 ........................ 70 68,327 Series 2004-C5 4.18%, 11/15/37 ....................... 85 82,352 GE Capital Commercial Mortgage Corp. Series 2005-C3 4.86%, 7/10/45 ........................ 105 104,062 Series 2004-C3 5.19%, 7/10/39 ........................ 95 95,078 Greenwich Capital Commercial Funding Corp. Series 2003-C1 4.11%, 7/05/35 ........................ 90 84,526 Series 2005-GG3 4.30%, 8/10/42 ........................ 100 97,376 7 -------------------------------------------------------------------------------- Separate Account No. 13 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 (Continued) -------------------------------------------------------------------------------- Principal Amount (000) U.S. $ Value -------------------------------------------------------------------------------- JP Morgan Chase Commercial Mortgage Securities Corp. Series 2005-LDP5 5.20%, 12/15/44 .................... $ 85 $ 85,425 Series 2004-C1 4.30%, 1/15/38 ..................... 80 76,881 Series 2005-LDP1 4.63%, 3/15/46 ..................... 105 103,384 Series 2005-LDP4 4.79%, 10/15/42 .................... 65 64,132 Series 2005-LDP3 4.85%, 8/15/42 ..................... 95 94,042 LB-UBS Commercial Mortgage Trust Series 2004-C7 A2 3.99%, 10/15/29 .................... 115 110,815 Series 2004-C8 4.20%, 12/15/29 .................... 80 77,699 Merrill Lynch Mortgage Trust Series 2004-KEY2 4.17%, 8/12/39 ..................... 65 62,790 Series 2005-MKB2 4.81%, 9/12/42 ..................... 125 123,770 Series 2005-CKI1 5.24%, 11/12/37 .................... 65 65,000 Morgan Stanley Capital I Inc. Series 2004-T13 3.94%, 9/13/45 ..................... 125 119,915 Series 2005-T17 4.78%, 12/13/41 .................... 125 121,607 Series 2005-HQ5 5.17%, 1/14/42 ..................... 65 64,988 --------- Total Commercial Mortgage Backed Securities ........................ 2,243,824 --------- ASSET BACKED SECURITIES - 2.4% Aegis Asset Backed Securities Trust Series 2004-3 4.73%, 9/25/34+ .................... 42 42,191 Bear Stearns Asset Backed Securities, Inc. Series 2005-SD1 4.68%, 4/25/22 ..................... 36 36,046 Capital Auto Receivables Asset Trust Series 2005-SN1A 4.10%, 6/15/08 ..................... 85 84,331 Capital One Prime Auto Receivables Trust Series 2005-1 4.32%, 8/17/09 ..................... 165 163,820 Citifinancial Mortgage Securities, Inc. Series 2003-1 3.36%, 1/25/33 ..................... 31 29,743 Credit-Based Asset Servicing and Securities, Inc. Series 2005-CB7 5.15%, 11/25/36 .................... 60 59,806 Equity One ABS, Inc. Series 2004-3 4.54%, 7/25/34+ .................... 1 1,378 MBNA Credit Card Master Note Trust Series 2003-A6 2.75%, 10/15/10 .................... 60 57,280 Merrill Lynch Mortgage Investors, Inc. Series 2004-SL1 4.64%, 4/25/35+ .................... 1 946 Morgan Stanley ABS Capital I Series 2004-HE4 4.73%, 5/25/34+ .................... 12 12,401 RAAC Mortgage Series 2004-SP1 4.71%, 6/25/13 ..................... 3 2,893 Residential Asset Mortgage Products, Inc. Series 2005-RS1 4.64%, 1/25/35+ .................... 47 46,900 Residential Asset Securities Corp. Series 2004-KS7 4.68%, 10/25/21+ ................... 8 8,382 Series 2002-KS7 4.90%, 11/25/32+ ................... 26 25,772 Residential Funding Mortgage Securities, Inc. Series 2004-HS2 4.53%, 12/25/18+ ................... 0 250 Structured Asset Investment Loan Trust Series 2005-1 4.50%, 2/25/14+ .................... 9 8,773 Series 2004-5 4.71%, 5/25/34+ .................... 19 18,926 --------- Total Asset Backed Securities ......... 599,838 --------- COLLATERALIZED MORTGAGE OBLIGATIONS - 1.8% Credit-Based Asset Servicing and Securities, Inc. Series 2003-CB1 3.45%, 1/25/33 ..................... 86 84,108 8 -------------------------------------------------------------------------------- Separate Account No. 13 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 (Continued) -------------------------------------------------------------------------------- Principal Amount (000) U.S. $ Value -------------------------------------------------------------------------------- Home Equity Mortgage Trust Series 2005-4 4.74%, 1/25/36 ........................ $ 70 $ 69,135 Merrill Lynch Mortgage Investors, Inc. Series 2005-A8 5.25%, 8/25/36 ........................ 108 107,352 Opteum Mortgage Acceptance Corp. Series 2005-5 5.64%, 11/25/35 ....................... 105 104,467 Residential Funding Mortgage Securities II Series 2005-HI2 4.46%, 5/25/35 ........................ 40 39,237 Washington Mutual Series 2005-AR2 4.75%, 1/25/45+ ....................... 59 59,427 ----------- Total Collateralized Mortgage Obligations .......................... 463,726 ----------- SOVEREIGN DEBT OBLIGATIONS - 1.7% Mexico - 1.7% United Mexican States 4.63%, 10/08/08 ....................... 210 207,375 7.50%, 1/14/12 ........................ 190 211,850 ----------- Total Sovereign Debt Obligations ......... 419,225 ----------- Total Long-Term Debt Securities (Amortized Cost $24,422,655).......... $24,280,507 ----------- SHORT-TERM DEBT SECURITIES - 2.1% U.S. Government & Government Sponsored Agency Obligations - 2.1% Federal National Mortgage Association 4.18%, 2/10/06 ........................ $ 255 252,927 Federal Home Loan Bank 4.02%, 1/11/06 ........................ 275 273,219 ----------- Total Short-Term Debt Securities (Amortized Cost $526,146)............. 526,146 ----------- Total Investments - 98.5% (Amortized Cost $24,948,801).......... 24,806,653 Other Assets Less Liabilities - 1.5% .............. 377,928 ----------- Net Assets - 100.0% ...................... $25,184,581 =========== + Variable rate coupon, rate shown as of December 31, 2005. Glossary: TBA - To Be Announced TIPS - Treasury Inflation Protected Security The accompanying notes are an integral part of these financial statements. 9 -------------------------------------------------------------------------------- Separate Account No. 10 (Pooled) of AXA Equitable Life Insurance Company
Statement of Assets and Liabilities December 31, 2005 -------------------------------------------------------------------------------------- Assets: Investments (Notes 2 and 3): Common stocks -- at value (cost: $29,585,772) ........................... $37,077,763 Warrants -- at value (cost: $170,491).................................... 203,994 Long-term debt securities -- at value (amortized cost: $22,408,793) ..... 22,355,731 Short-term debt securities -- at value (amortized cost: $4,822,097) ..... 4,822,097 Receivable for investment securities sold ................................ 282,640 Interest receivable ...................................................... 173,450 Dividends and other receivables .......................................... 51,520 --------------------------------------------------------------------------------------- Total assets ............................................................. 64,967,195 --------------------------------------------------------------------------------------- Liabilities: Due to custodian ......................................................... 190,481 Payable for investment securities purchased .............................. 4,826,185 Due to AXA Equitable Life's General Account .............................. 161,685 Accrued expenses ......................................................... 138,764 --------------------------------------------------------------------------------------- Total liabilities ........................................................ 5,317,115 --------------------------------------------------------------------------------------- Net Assets Attributable to Contractowners or in Accumulation ............. $59,650,080 ======================================================================================= Units Outstanding Unit Values ------------------- --------------- Institutional ..................................... 350 $ 20,312.61 RIA ............................................... 59,995 191.64 Momentum Strategy ................................. 23,304 132.72 MRP ............................................... 748,443 47.30 EPP ............................................... 12,925 197.29
The accompanying notes are an integral part of these financial statements. 10 -------------------------------------------------------------------------------- Separate Account No. 10 (Pooled) of AXA Equitable Life Insurance Company
Statement of Operations Year Ended December 31, 2005 ------------------------------------------------------------------------------------ Investment Income (Note 2): Dividends (net of foreign taxes withheld of $24,889)................... $ 745,436 Interest .............................................................. 1,042,485 ------------------------------------------------------------------------------------- Total investment income ............................................... 1,787,921 ------------------------------------------------------------------------------------- Expenses (Note 5): Investment management fees ............................................ (278,874) Operating and expense charges ......................................... (591,781) ------------------------------------------------------------------------------------- Total expenses ........................................................ (870,655) ------------------------------------------------------------------------------------- Net investment income ................................................. 917,266 ------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) on Investments (Note 2): Realized gain from security and foreign currency transactions ......... 3,886,500 Change in unrealized appreciation/depreciation of investments ......... (1,242,359) ------------------------------------------------------------------------------------- Net realized and unrealized gain on investments ....................... 2,644,141 ------------------------------------------------------------------------------------- Net Increase in Net Assets Attributable to Operations ................. $ 3,561,407 =====================================================================================
The accompanying notes are an integral part of these financial statements. 11 -------------------------------------------------------------------------------- Separate Account No. 10 (Pooled) of AXA Equitable Life Insurance Company
Statements of Changes in Net Assets ---------------------------------------------------------------------------------------------------------------------- Year Ended December 31, 2005 2004 ---------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets: From Operations: Net investment income ................................................................. $ 917,266 $ 911,848 Net realized gain on investments and foreign currency transactions .................... 3,886,500 3,487,765 Change in unrealized appreciation/depreciation of investments ......................... (1,242,359) 2,060,634 ---------------------------------------------------------------------------------------------------------------------- Net increase in net assets attributable to operations ................................. 3,561,407 6,460,247 ---------------------------------------------------------------------------------------------------------------------- From Contributions and Withdrawals: Contributions ......................................................................... 8,379,434 11,488,066 Withdrawals ........................................................................... (32,701,391) (25,866,643) Asset management fees ................................................................. (50,293) (46,061) Administrative fees ................................................................... (201,461) (295,160) ---------------------------------------------------------------------------------------------------------------------- Net decrease in net assets attributable to contributions and withdrawals .............. (24,573,711) (14,719,798) ---------------------------------------------------------------------------------------------------------------------- Decrease in Net Assets ................................................................ (21,012,304) (8,259,551) Net Assets Attributable to Contractowners or in Accumulation -- Beginning of Year ..... 80,662,384 88,921,935 ---------------------------------------------------------------------------------------------------------------------- Net Assets Attributable to Contractowners or in Accumulation -- End of Year ........... $ 59,650,080 $ 80,662,384 ======================================================================================================================
The accompanying notes are an integral part of these financial statements. 12 -------------------------------------------------------------------------------- Separate Account No. 10 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 ---------------------------------------------------------------------------- Company Shares U.S. $ Value ---------------------------------------------------------------------------- COMMON STOCKS - 62.5% Finance - 14.8% Banking - Money Center - 4.9% Anglo Irish Bank Corp. PLC ............. 11,220 $ 170,734 Banco Bilbao Vizcaya Argentaria SA...... 9,957 177,809 BNP Paribas ............................ 3,754 303,849 Credit Suisse Group .................... 6,958 354,528 EFG Eurobank Ergasias SA ............... 3,053 96,603 JPMorgan Chase & Co. ................... 14,974 594,318 Kookmin Bank (ADR) (a) ................. 964 72,020 Mitsubishi UFJ Financial Group, Inc. (a) .................... 21 285,036 Sumitomo Mitsui Financial Group, Inc. (a) .................... 23 243,892 UBS AG ................................. 3,756 357,333 Wachovia Corp. ......................... 4,700 248,442 --------- 2,904,564 --------- Banking - Regional - 1.6% Bank of America Corp. .................. 9,248 426,795 Commerce Bancorp NJ .................... 3,900 134,199 National Bank Of Greece ................ 2,240 95,494 National City Corp. .................... 4,200 140,994 North Fork Bancorporation, Inc. ........ 1,800 49,248 Wells Fargo & Co. ...................... 1,700 106,811 --------- 953,541 --------- Brokerage & Money Management - 2.5% Ameriprise Financial Inc. .............. 685 28,085 The Charles Schwab Corp. ............... 20,600 302,202 Franklin Resources, Inc. ............... 2,400 225,624 Goldman Sachs Group, Inc. .............. 800 102,168 Lehman Brothers Holdings, Inc. ......... 1,200 153,804 Merrill Lynch & Co., Inc. .............. 4,500 304,785 Morgan Stanley ......................... 1,300 73,762 Nomura Holdings, Inc. (a) .............. 16,500 316,339 --------- 1,506,769 --------- Insurance - 3.3% ACE Ltd. ............................... 2,100 112,224 AFLAC, Inc. ............................ 4,200 194,964 American International Group, Inc. ..... 9,900 675,477 Hartford Financial Services Group, Inc. ........................ 1,800 154,602 ING Groep NV ........................... 8,861 307,491 Prudential PLC ......................... 3,824 36,147 QBE Insurance Group, Ltd. .............. 8,989 129,346 The St. Paul Travelers Cos., Inc. ...... 3,654 163,224 Swiss RE (a) ........................... 1,324 96,862 XL Capital Ltd. Cl. A .................. 1,800 121,284 --------- 1,991,621 --------- Miscellaneous - 2.0% Aeon Credit Service Co. Ltd. (a) ....... 1,400 $ 132,541 American Express Co. ................... 3,235 166,473 Citigroup, Inc. ........................ 16,632 807,151 US Bancorp ............................. 2,100 62,769 --------- 1,168,934 --------- Mortgage Banking - 0.5% Fannie Mae ............................. 3,400 165,954 Freddie Mac ............................ 1,600 104,560 --------- 270,514 --------- Other - 0.1% MI Developments Inc.-Cl. A ............. 1,094 37,612 --------- 8,833,555 --------- Technology - 8.4% Communication Equipment - 1.4% Avaya Inc. (a) ......................... 22 235 Cisco Systems Inc. (a) ................. 12,600 215,712 Juniper Networks, Inc. (a) ............. 7,300 162,790 Motorola, Inc. ......................... 6,100 137,799 Nortel Networks Corp. (a) .............. 2,800 8,568 QUALCOMM, Inc. ......................... 4,500 193,860 Telefonaktiebolaget LM Ericsson-Cl. B ..................... 34,684 119,232 --------- 838,196 --------- Computer Hardware/Storage - 1.9% Apple Computer, Inc. (a) ............... 2,200 158,158 Dell, Inc. (a) ......................... 10,800 323,892 EMC Corp. (a) .......................... 7,700 104,874 Hewlett-Packard Co. .................... 12,200 349,286 High Tech Computer Corp. ............... 7,000 103,199 International Business Machines Corp. ..................... 1,100 90,420 --------- 1,129,829 --------- Computer Services - 0.6% Bearingpoint Inc. (a) .................. 3,940 30,969 Cap Gemini SA (a) ...................... 4,829 193,914 Fiserv, Inc. (a) ....................... 1,700 73,559 Infosys Technologies Ltd. (ADR) ........ 700 56,602 --------- 355,044 --------- Contract Manufacturing - 0.2% Flextronics International Ltd. (a) ..... 5,700 59,508 Sanmina-SCI Corp. (a) .................. 8,600 36,636 Solectron Corp. (a)..................... 14,100 51,606 --------- 147,750 --------- Internet Media - 0.6% Google, Inc.-Cl. A (a) ................. 300 124,458 Yahoo! Inc. (a) ........................ 6,700 262,506 --------- 386,964 --------- 13 -------------------------------------------------------------------------------- Separate Account No. 10 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 (Continued) -------------------------------------------------------------------------------- Company Shares U.S. $ Value -------------------------------------------------------------------------------- Miscellaneous - 0.5% Hoya Corp. .................................. 8,800 $ 316,525 --------- Semiconductor Capital Equipment - 0.2% Applied Materials, Inc. ..................... 6,300 113,022 --------- Semiconductor Components - 1.4% Agere Systems Inc. (a) ...................... 37 478 Broadcom Corp.-Cl. A (a) .................... 1,800 84,870 Freescale Semiconductor-Cl. B (a) ........... 648 16,310 Intel Corp. ................................. 9,144 228,234 Linear Technology Corp. ..................... 2,800 100,996 Marvell Technology Group Ltd. (a) ........... 5,000 280,450 Texas Instruments, Inc. ..................... 3,900 125,073 --------- 836,411 --------- Software - 1.5% Business Objects SA (a) ..................... 4,293 173,814 Mercury Interactive Corp. (a) ............... 2,500 69,475 Microsoft Corp. ............................. 13,200 345,180 Oracle Corp. (a) ............................ 10,400 126,984 SAP AG ...................................... 669 121,354 Symantec Corp. (a) .......................... 2,700 47,250 --------- 884,057 --------- 5,007,798 --------- Health Care - 8.0% Biotechnology - 0.9% Amgen, Inc. (a) ............................. 4,100 323,326 Gilead Sciences, Inc. (a) ................... 2,600 136,838 Monsanto Co. ................................ 632 48,999 --------- 509,163 --------- Drugs - 3.1% Allergan Inc ................................ 1,500 161,940 Forest Laboratories, Inc. (a) ............... 2,400 97,632 GlaxoSmithKline PLC ......................... 5,439 137,318 Merck & Co. Inc. ............................ 3,800 120,878 Novartis AG-Cl. G ........................... 7,134 374,617 Pfizer, Inc. ................................ 18,304 426,849 Roche Holding AG ............................ 2,445 366,857 Takeda Pharmaceutical Co. Ltd. (a) .......... 1,400 75,772 Teva Pharmaceutical Industries Ltd. (ADR) ................... 1,800 77,418 --------- 1,839,281 --------- Medical Products - 2.2% Alcon, Inc. ................................. 3,300 427,680 Boston Scientific Corp. (a) ................. 4,400 107,756 Johnson & Johnson ........................... 6,000 360,600 Nobel Biocare Holding AG (a) ................ 634 139,341 St. Jude Medical, Inc. (a) .................. 2,900 145,580 Zimmer Holdings, Inc. (a) ................... 2,230 150,391 --------- 1,331,348 --------- -------------------------------------------------------------------------------- Company Shares U.S. $ Value -------------------------------------------------------------------------------- Medical Services - 1.8% Caremark Rx, Inc. (a) ....................... 4,100 $ 212,339 UnitedHealth Group, Inc. .................... 6,600 410,124 WellPoint, Inc. (a) ......................... 6,000 478,740 --------- 1,101,203 --------- 4,780,995 --------- Consumer Services - 7.3% Airlines - 0.1% Continental Airlines Inc.-Cl. A (a) ......... 900 19,170 Southwest Airlines Co. ...................... 3,700 60,791 --------- 79,961 --------- Apparel - 0.1% Jones Apparel Group, Inc. ................... 1,800 55,296 --------- Broadcasting & Cable - 1.5% CBS. Corp. .................................. 7,040 229,504 Comcast Corp.-Cl. A (a) ..................... 6,414 166,507 Grupo Televisa SA (ADR) ..................... 1,500 120,750 News Corp.-Cl. A ............................ 8,100 125,955 Time Warner, Inc. ........................... 10,600 184,864 Westwood One, Inc. .......................... 3,700 60,310 --------- 887,890 --------- Cellular Communications - 0.3% America Movil SA de CV (ADR) ................ 6,200 181,412 --------- Entertainment & Leisure - 0.6% Aristocrat Leisure Ltd. ..................... 11,571 104,657 Carnival Corp. .............................. 1,800 96,246 Royal Caribbean Cruises Ltd. ................ 3,100 139,686 --------- 340,589 --------- Gaming - 0.2% International Game Technology ............... 3,200 98,496 --------- Miscellaneous - 0.4% Cendant Corp. ............................... 4,100 70,725 Electronic Arts, Inc. (a) ................... 2,400 125,544 Li & Fung Ltd. .............................. 34,000 65,557 PHH Corp. (a) ............................... 195 5,464 --------- 267,290 --------- Printing & Publishing - 0.2% Naspers Ltd.-Cl. N .......................... 5,096 90,246 --------- Restaurants & Lodging - 0.3% Starbucks Corp. (a) ......................... 6,900 207,069 --------- Retail - General Merchandise - 3.6% Bed Bath & Beyond, Inc. (a) ................. 2,300 83,145 Richemont Ag Cie Finance Uts - Cl.B (a) ................................ 3,861 167,952 eBay, Inc. (a) .............................. 4,900 211,925 Esprit Holdings Ltd. ........................ 4,000 28,426 Federated Department Stores ................. 3,547 235,272 14 -------------------------------------------------------------------------------- Separate Account No. 10 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 (Continued) -------------------------------------------------------------------------------- Company Shares U.S. $ Value -------------------------------------------------------------------------------- Home Depot, Inc. ....................... 7,000 $ 283,360 Luxottica Group SpA .................... 6,141 155,843 Marks & Spencer Group PLC .............. 17,128 148,731 Shimamura Co., Ltd. (a) ................ 700 96,912 Target Corp. ........................... 4,300 236,371 Wal-Mart de Mexico SA de CV (a) ........ 14,100 78,282 Walmart Stores Inc ..................... 7,000 327,600 Williams-Sonoma, Inc. (a) .............. 1,600 69,040 --------- 2,122,859 --------- 4,331,108 --------- Energy - 6.5% Domestic Producers - 0.6% Noble Energy, Inc. ..................... 4,900 197,470 Western Gas Resources Inc. ............. 3,100 145,979 --------- 343,449 --------- International - 3.5% Chevron Corp. .......................... 7,600 431,452 ENI SpA ................................ 8,557 237,421 Exxon Mobil Corp. ...................... 10,912 612,927 Petroleo Brasileiro, SA (ADR) (a) ....................... 1,600 114,032 Talisman Energy Inc. ................... 7,200 380,736 Total SA ............................... 1,281 321,899 --------- 2,098,467 --------- Miscellaneous - 0.8% ConocoPhillips ......................... 8,000 465,440 --------- Oil Service - 1.6% Baker Hughes, Inc. ..................... 3,800 230,964 FMC Technologies, Inc. (a) ............. 3,900 167,388 Halliburton Co. ........................ 4,400 272,624 Nabors Industries Ltd. (a) ............. 3,700 280,275 --------- 951,251 --------- 3,858,607 --------- Consumer Staples - 4.8% Alcohol - 0.3% Enterprise Inns PLC .................... 9,541 153,564 --------- Beverages - 1.0% The Coca-Cola Co. ...................... 6,400 257,984 Pepsi Bottling Group Inc. .............. 6,400 183,104 PepsiCo, Inc. .......................... 1,100 64,988 SABMiller PLC .......................... 6,319 115,226 --------- 621,302 --------- Food - 1.0% Del Monte Foods Co. (a) ................ 1,254 13,079 HJ Heinz Co. ........................... 2,700 91,044 JM Smucker Co. ......................... 96 4,224 Nestle, SA ............................. 1,341 400,786 Wrigley WM Jr. Co. ..................... 1,000 66,490 --------- 575,623 --------- Household Products - 0.8% Procter & Gamble Co. ................... 8,600 497,768 --------- Retail - Food & Drug - 0.7% The Kroger Co. (a) ..................... 7,000 132,160 Safeway, Inc. .......................... 5,800 137,228 Walgreen Co. ........................... 2,800 123,928 --------- 393,316 --------- Tobacco - 1.0% Altria Group, Inc. ..................... 8,300 620,176 --------- 2,861,749 --------- Capital Goods - 4.1% Electrical Equipment - 1.1% Atlas Copco AB-Cl. A (a) ............... 5,769 128,581 Johnson Controls, Inc. ................. 2,800 204,148 Sumitomo Electric Industries, Ltd. ..... 6,100 92,680 Yamada Denki Co. Ltd. (a) .............. 1,800 225,382 --------- 650,791 --------- Machinery - 0.2% Eaton Corp. ............................ 1,700 114,053 --------- Miscellaneous - 2.8% General Electric Co. ................... 27,800 974,417 Nitto Denko Corp. (a) .................. 3,300 257,270 United Technologies Corp. .............. 7,500 419,325 --------- 1,651,012 --------- 2,415,856 --------- Utilities - 3.4% Electric & Gas Utility - 1.5% American Electric Power Co. Inc. ....... 3,700 137,233 Constellation Energy Group, Inc. ....... 3,700 213,120 Dynegy Inc-Cl. A (a) ................... 1,900 9,196 Entergy Corp. .......................... 1,000 68,650 FirstEnergy Corp. ...................... 1,500 73,485 PPL Corporation ........................ 5,300 155,820 Sempra Energy .......................... 4,900 219,716 --------- 877,220 --------- Telephone Utility - 1.9% AT&T Inc. (a) .......................... 8,386 205,373 BellSouth Corp. ........................ 3,000 81,300 Centurytel Inc. ........................ 1,900 63,004 Cincinnati Bell Inc. (a) ............... 11,900 41,769 Qwest Communications Intl. Inc. (a)..... 3,000 16,950 Sprint Nextel Corp. .................... 23,481 548,516 Verizon Communications, Inc. ........... 6,400 192,768 --------- 1,149,680 --------- 2,026,900 --------- 15 -------------------------------------------------------------------------------- Separate Account No. 10 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 (Continued) -------------------------------------------------------------------------------- Company Shares U.S. $ Value -------------------------------------------------------------------------------- Consumer Manufacturing - 2.2% Auto & Related - 0.8% Denso Corp. (a) ......................... 7,000 $ 241,686 Toyota Motor Corp. ...................... 4,800 249,203 ---------- 490,889 ---------- Building & Related - 1.4% American Standard Cos, Inc. ............. 7,200 287,640 CRH PLC ................................. 8,090 237,588 Rinker Group Ltd. ....................... 8,103 97,858 Vinci SA ................................ 1,822 156,751 Wolseley PLC ............................ 1,148 24,150 ---------- 803,987 ---------- 1,294,876 ---------- Basic Industry - 1.1% Chemicals - 0.8% Du Pont E I De Nemours & Co. ............ 2,900 123,250 Praxair Inc. ............................ 6,200 328,352 ---------- 451,602 ---------- Mining & Metals - 0.3% BHP Billiton PLC ........................ 11,071 180,378 ---------- 631,980 ---------- Multi-Industry Companies - 0.8% Mitsubishi Corp. (a) .................... 15,900 352,044 Mitsui & Co. Ltd. (a) ................... 11,000 141,373 ---------- 493,417 ---------- Aerospace & Defense - 0.6% Aerospace - 0.6% BAE Systems PLC ......................... 18,644 122,402 Lockheed Martin Corp. ................... 3,300 209,979 ---------- 332,381 ---------- Financial - 0.2% Office - 0.2% Equity Office Properties Trust .......... 3,700 112,221 ---------- Transportation - 0.2% Railroad - 0.2% East Japan Railway Co. (a) .............. 14 96,318 ---------- Total Common Stocks (cost $29,585,772).................... 37,077,763 ---------- WARRANTS - 0.3% Technology - 0.3% Computer Hardware - 0.0% Asustek Computer, Inc. Warrants, expiring 3/18/07 .......... 3,721 11,423 ---------- Computer Peripherals - 0.0% AU Optronics Warrants, expiring 7/07/06 .......... 2,936 4,245 ---------- Software - 0.1% Infosys Technologies Ltd. Warrants, expiring 8/28/08 .......... 258 70,266 ---------- Semiconductor Components - 0.2% Taiwan Semiconductor Manufacturing Co., Ltd. Warrants, expiring 11/08/10 ......... 62,137 118,060 ---------- Total Warrants (cost $170,491) ...................... 203,994 ---------- -------------------------------------------------------------------------------- Principal Amount (000) -------------------------------------------------------------------------------- LONG-TERM DEBT SECURITIES - 37.5% U.S. GOVERNMENT AND GOVERNMENT SPONSORED AGENCY OBLIGATIONS - 21.7% Federal National Mortgage Association - 14.6% 5.00%, TBA ........................ $ 310 300,312 5.50%, TBA ........................ 1,220 1,207,800 3.88%, 11/17/08 ................... 265 258,366 4.50%, TBA ........................ 685 666,376 5.00%, TBA ........................ 235 232,430 5.00%, TBA ........................ 345 334,003 5.00%, 12/01/20 ................... 448 441,280 5.50%, 10/01/18 - 6/01/20 ......... 775 780,005 5.50%, 4/01/33 - 2/01/35 .......... 1,634 1,622,152 6.00%, 11/01/16 ................... 93 95,576 4.57%, 7/25/35+ ................... 68 67,727 6.00%, 7/01/20 - 9/01/35 .......... 1,147 1,159,854 6.00%, TBA ........................ 715 721,479 6.50%, TBA ........................ 830 851,269 --------- 8,738,629 --------- U.S. Treasury Notes - 2.8% 1.63%, 1/15/15(TIPS) .............. 10 10,050 2.00%, 7/15/14(TIPS) .............. 210 220,669 3.88%, 9/15/10 .................... 39 38,188 4.25%, 10/31/07 ................... 1,270 1,266,279 4.50%, 11/15/15 ................... 122 123,001 --------- 1,658,187 --------- U.S. Treasury Bonds - 3.3% 5.38%, 2/15/31 .................... 1,000 1,123,281 7.25%, 5/15/16 .................... 665 816,547 --------- 1,939,828 --------- 16 -------------------------------------------------------------------------------- Separate Account No. 10 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 (Continued) -------------------------------------------------------------------------------- Principal Amount Company (000) U.S.$ Value -------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp. - 1.0% 4.50%, 8/01/35 - 11/01/35 ......... $ 254 $ 239,393 4.50%, TBA ........................ 60 56,438 6.00%, TBA ........................ 140 141,356 4.50%, 9/01/35 .................... 155 145,648 ---------- 582,835 ---------- Total U.S. Government and Government Sponsored Agency Obligations ............... 12,919,479 ---------- CORPORATE DEBT OBLIGATIONS - 8.8% Aerospace & Defense - 0.1% Raytheon Co. 6.75%, 8/15/07 .................... 32 32,783 Textron, Inc. 6.38%, 11/15/08 ................... 25 25,961 ---------- 58,744 ---------- Automotive - 0.0% DaimlerChrysler North America Corp. 4.88%, 6/15/10 .................... 25 24,410 ---------- Banking - 0.8% Barclays Bank PLC 8.55%, 9/29/49+ ................... 75 86,526 JP Morgan Chase & Co. 6.75%, 2/01/11 .................... 75 80,331 RBS Capital Trust III 5.51%, 9/29/49+ ................... 105 104,387 UFJ Finance Aruba AEC 6.75%, 7/15/13 .................... 100 109,186 Washington Mutual, Inc. 4.00%, 1/15/09 .................... 60 58,193 Wells Fargo & Co. 4.20%, 1/15/10 .................... 35 34,074 Zions Bancorp. 5.50%, 11/16/15 ................... 25 25,184 ---------- 497,881 ---------- Broadcasting/Media - 0.3% AOL Time Warner 6.88%, 5/01/12 .................... 30 31,934 British Sky Broadcasting Group PLC 5.63%, 10/15/15 ................... 40 39,815 News America, Inc. 6.55%, 3/15/33 .................... 25 25,713 Time Warner Entertainment Co. LP 8.38%, 3/15/23 .................... 60 69,379 WPP Finance Corp. 5.88%, 6/15/14 .................... 30 30,447 ---------- 197,288 ---------- Building/Real Estate - 0.1% iStar Financial, Inc. 5.15%, 3/01/12 .................... 30 29,054 Simon Property Group L.P. 6.38%, 11/15/07 ................... 30 30,655 ---------- 59,709 ---------- Cable - 0.3% AT&T Broadband Corp. 9.46%, 11/15/22 ................... 35 45,857 British Sky Broadcasting Group PLC 6.88%, 2/23/09 .................... 20 20,951 Comcast Cable Communications, Inc. 6.88%, 6/15/09 .................... 45 47,265 Comcast Corp. 5.30%, 1/15/14 .................... 40 39,242 5.50%, 3/15/11 .................... 50 50,271 ---------- 203,586 ---------- Chemicals - 0.1% The Lubrizol Corp. 4.63%, 10/01/09 ................... 25 24,503 ProLogis 7.05%, 7/15/06 .................... 20 20,168 ---------- 44,671 ---------- Communications - 0.6% British Telecommunications PLC 8.38%, 12/15/10+ .................. 80 91,069 Deutsche Telekom International Finance BV 8.00%, 6/15/10+ ................... 30 34,013 Sprint Capital Corp. 8.38%, 3/15/12 .................... 95 110,101 Telecom Italia Capital 4.00%, 1/15/10 .................... 95 90,483 Verizon Global Funding Corp. 4.90%, 9/15/15 .................... 25 24,200 ---------- 349,866 ---------- Communications-Mobile - 0.5% AT&T Wireless Services, Inc. 7.35%, 3/01/06 .................... 30 30,126 7.88%, 3/01/11 .................... 90 100,985 8.75%, 3/01/31 .................... 40 52,993 Cingular Wireless Services, Inc. 5.63%, 12/15/06 ................... 65 65,469 Telus Corp. 7.50%, 6/01/07 .................... 75 77,448 ---------- 327,021 ---------- 17 -------------------------------------------------------------------------------- Separate Account No. 10 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 (Continued) -------------------------------------------------------------------------------- Principal Amount Company (000) U.S.$ Value -------------------------------------------------------------------------------- Consumer Manufacturing - 0.1% Fortune Brands, Inc. 2.88%, 12/01/06 ................ $ 30 $ 29,359 Textron Financial Corp. 4.13%, 3/03/08 ................. 35 34,461 ----------- 63,820 ----------- Energy - 0.5% Amerada Hess Corp. 6.65%, 8/15/11 ................. 55 59,100 7.88%, 10/01/29 ................ 50 60,544 Conoco, Inc. 6.95%, 4/15/29 ................. 40 48,276 Duke Energy Co. 7.88%, 8/16/10 ................. 10 11,059 Enterprise Products Operations L.P. 5.60%, 10/15/14 ................ 25 24,981 Valero Energy Corp. 6.88%, 4/15/12 ................. 45 49,034 7.50%, 4/15/32 ................. 20 24,306 ----------- 277,300 ----------- Financial - 2.4% American General Finance Corp. 4.63%, 5/15/09 ................. 65 64,348 Boeing Capital Corp. 4.75%, 8/25/08 ................. 15 14,960 CIT Group, Inc. 4.59%, 5/18/07+ ................ 50 50,135 7.75%, 4/02/12 ................. 90 102,072 Citigroup, Inc. 4.60%, 6/09/09+ ................ 40 40,080 4.63%, 8/03/10 ................. 100 98,615 Core Investment Grade Trust 4.66%, 11/30/07+ ............... 110 108,843 Countrywide Home Loans, Inc. 4.00%, 3/22/11 ................. 60 56,456 4.25%, 12/19/07 ................ 50 49,304 Credit Suisse First Boston 5.50%, 8/15/13 ................. 45 45,904 General Electric Capital Corp. 4.00%, 2/17/09+ ................ 110 107,296 4.38%, 11/21/11 ................ 15 14,563 4.56%, 6/22/07 ................. 260 260,300 6.75%, 3/15/32 ................. 35 41,085 The Goldman Sachs Group, Inc. 4.75%, 7/15/13 ................. 45 43,649 5.13%, 1/15/15 ................. 25 24,717 Household Finance Corp. 6.50%, 11/15/08 ................ 75 78,058 7.00%, 5/15/12 ................. 35 38,285 MBNA Corp. 4.63%, 9/15/08 ................. 55 54,601 Merrill Lynch & Co., Inc. 4.79%, 8/04/10 ................. 115 113,706 Resona Preferred Global Securities 7.19%, 12/29/49+ ............... 25 26,524 ----------- 1,433,501 ----------- Food/Beverage - 0.5% ConAgra Foods, Inc. 6.75%, 9/15/11 ................. 7 7,456 7.88%, 9/15/10 ................. 30 33,052 General Mills, Inc. 5.13%, 2/15/07 ................. 95 94,919 Kraft Foods, Inc. 4.13%, 11/12/09 ................ 95 91,928 5.25%, 10/01/13 ................ 5 5,002 The Kroger Co. 7.80%, 8/15/07 ................. 45 46,752 ----------- 279,109 ----------- Health Care - 0.5% Aetna, Inc. 7.38%, 3/01/06 ................. 52 52,206 Humana, Inc. 6.30%, 8/01/18 ................. 50 52,664 WellPoint, Inc. 3.50%, 9/01/07 ................. 60 58,529 3.75%, 12/14/07 ................ 18 17,600 4.25%, 12/15/09 ................ 75 73,053 Wyeth 5.50%, 2/01/14 ................. 38 38,492 ----------- 292,544 ----------- Insurance - 0.4% Assurant, Inc. 5.63%, 2/15/14 ................. 40 40,513 Liberty Mutual Group 5.75%, 3/15/14 ................. 30 29,612 Royal & Sun Alliance Insurance Group PLC. 8.95%, 10/15/29 ................ 40 51,079 Zurich Capital Trust I 8.38%, 6/01/37 ................. 115 124,460 ----------- 245,664 ----------- Metals/Mining - 0.1% Ispat Inland ULC 9.75%, 4/01/14 ................. 25 28,313 Teck Cominco Ltd. 6.13%, 10/01/35 ................ 15 14,834 ----------- 43,147 ----------- 18 -------------------------------------------------------------------------------- Separate Account No. 10 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 (Continued) -------------------------------------------------------------------------------- Principal Amount Company (000) U.S.$ Value -------------------------------------------------------------------------------- Paper/Packaging - 0.2% International Paper Co. 5.30%, 4/01/15 ........................ $ 55 $ 52,973 Packaging Corp. of America 5.75%, 8/01/13 ........................ 30 29,462 Weyerhaeuser Co. 5.95%, 11/01/08 ....................... 40 40,808 ----------- 123,243 ----------- Public Utilities - Electric & Gas - 1.0% Carolina Power & Light Co. 6.50%, 7/15/12 ........................ 60 64,283 Consumers Energy Co. 4.25%, 4/15/08 ........................ 30 29,382 Duke Capital LLC 8.00%, 10/01/19 ....................... 45 53,710 FirstEnergy Corp. 6.45%, 11/15/11 ....................... 50 53,000 7.38%, 11/15/31 ....................... 50 58,999 MidAmerican Energy Holdings Co. 5.88%, 10/01/12 ....................... 25 25,809 Nisource Finance Corp. 7.88%, 11/15/10 ....................... 35 38,779 Pacific Gas & Electric Co. 4.80%, 3/01/14 ........................ 60 58,472 6.05%, 3/01/34 ........................ 30 31,049 Progress Energy, Inc. 7.10%, 3/01/11 ........................ 35 37,762 Public Service Company of Colorado 7.88%, 10/01/12 ....................... 30 34,924 SPI Electricity & Gas Australia Holdings Pty Ltd. 6.15%, 11/15/13 ....................... 55 58,712 Xcel Energy, Inc. 7.00%, 12/01/10 ....................... 50 53,812 ----------- 598,693 ----------- Public Utilities - Telephone - 0.1% Telecom Italia Capital 4.00%, 11/15/08 ....................... 25 24,245 6.38%, 11/15/33 ....................... 35 35,404 ----------- 59,649 ----------- Service - 0.1% Waste Management, Inc. 6.88%, 5/15/09 ........................ 40 42,174 ----------- Supermarket/Drug - 0.1% Safeway, Inc. 4.80%, 7/16/07 ........................ 15 14,935 6.50%, 3/01/11 ........................ 15 15,533 ----------- 30,468 ----------- Technology - 0.0% IBM Corp. 4.38%, 6/01/09 ........................ $ 15 $ 14,812 Motorola, Inc. 7.63%, 11/15/10 ....................... 5 5,558 ----------- 20,370 ----------- Total Corporate Debt Obligations ......... 5,272,858 ----------- COMMERCIAL MORTGAGE BACKED SECURITIES - 4.2% Banc America Commercial Mortgage, Inc. Series 2005-6, Class A4 5.18%, 9/10/47 ........................ 140 140,650 Series 2004-3, Class A5 5.30%, 6/10/39+ ....................... 150 152,814 Series 2004-4 Class A3 4.13%, 7/10/42 ........................ 90 87,399 Series 2004-6, Class A2 4.16%, 12/10/42 ....................... 120 116,271 Series 2005-1, Class A3 4.88%, 11/10/42 ....................... 125 124,050 Bear Stearns Commercial Mortgage Securities, Inc. Series 2005-PWR7, Class A3 5.12%, 2/11/41+ ....................... 120 119,553 CS First Boston Mortgage Securities Corp. Series 2005-C1, Class A4 5.01%, 2/15/38 ........................ 105 103,963 Series 2003-CK2, Class A2 3.86%, 3/15/36 ........................ 80 78,088 Series 2004-C5, Class A2 4.18%, 11/15/37 ....................... 100 96,885 GE Capital Commercial Mortgage Corp. Series 2004-C3, Class A4 5.19%, 7/10/39 ........................ 105 105,086 Series 2005-C3, Class A3FX 4.86%, 7/10/45 ........................ 90 89,196 Greenwich Capital Commercial Funding Corp. Series 2003-C1, Class A4 4.11%, 7/05/35 ........................ 100 93,918 Series 2005-GG3, Class A2 4.30%, 8/10/42 ........................ 125 121,720 JP Morgan Chase Commercial Mortgage Securities Corp. Series 2005-LDP1,Class A2 4.63%, 3/15/46 ........................ 130 127,999 19 -------------------------------------------------------------------------------- Separate Account No. 10 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 (Continued) -------------------------------------------------------------------------------- Principal Amount Company (000) U.S.$ Value -------------------------------------------------------------------------------- Series 2005-LDP3, Class A2 4.85%, 8/15/42 ..................... $ 80 $ 79,194 Series 2005-LDP4, Class A2 4.79%, 10/15/42 .................... 110 108,531 Series 2005-lDP5, Class A2 5.20%, 12/15/44 .................... 75 75,375 LB-UBS Commercial Mortgage Trust Series 2004-C7, Class A2 3.99%, 10/15/29 .................... 85 81,906 Series 2004-C8, Class A2 4.20%, 12/15/29 .................... 95 92,267 Series 2005-C1, Class A4 4.74%, 2/15/30 ..................... 85 82,538 Series 2005-C7, Class A4 5.20%, 11/15/30 .................... 65 65,212 Merrill Lynch Mortgage Trust Series 2004-KEY2 4.17%, 8/12/39 ..................... 75 72,451 Series 2005-CKI1, Class A6 5.24%, 11/12/37 .................... 55 55,000 Morgan Stanley Capital I Inc. ......... Series 2004-T13, Class A2 3.94%, 9/13/45 ..................... 35 33,576 Series 2005-HQ5, Class A4 5.17%, 1/14/42 ..................... 70 69,987 Series 2005-T17, Class A5 4.78%, 12/13/41 .................... 145 141,064 --------- Total Commercial Mortgage Backed Securities ........................ 2,514,693 --------- ASSET BACKED SECURITIES - 1.7% Aegis Asset Backed Securities Trust Series 2004-3, Class A2 4.73%, 9/25/34+ .................... 51 50,981 American Express Credit Account Master Trust Series 2005-1, Class A 4.50%, 10/15/12+ ................... 75 75,159 Asset Backed Funding Certificates Series 2003-WF1, Class A2 5.28%, 12/25/32+ ................... 50 50,208 Bank One Issuance Trust Series 2004-A4, Class A4 4.51%, 2/16/10+ .................... 95 95,046 Bear Stearns Asset Backed Securities, Inc. Series 2005-SD1, Class 1A1 4.68%, 4/25/22 ..................... 41 41,195 Capital Auto Receivables Asset Trust Series 2005-SN1A 4.10%, 6/15/08 ..................... $ 110 $ 109,134 Series 2005-1, Class A3 4.32%, 8/17/09 ..................... 140 138,999 Citibank Financial Mortgage Securities, Inc. Series 2003-01 AFPT 3.36%, 1/25/33 ..................... 26 24,665 Credit Based Asset Servicing & Securities, Inc. Series 2005-CB7, Class AF2 5.15%, 11/25/36 .................... 50 49,838 Discover Card Master Trust I Series 2004-1, Class A 4.50%, 4/16/10+ .................... 105 105,066 Equity One ABS, Inc. Series 2004-3 4.54%, 7/25/34+ .................... 2 1,607 MBNA Credit Card Master Note Trust Series 2003-Class A6 2.75%, 10/15/10 .................... 50 47,734 Merrill Lynch Mortgage Investors, Inc. Series 2004-SL1, Class A 4.64%, 4/25/35+ .................... 1 860 Morgan Stanley ABS Capital I Series Series 2004-HE4, Class A3 4.73%, 5/25/34+ .................... 14 14,172 Residential Asset Mortgage Products, Inc. Series 2004-SP1, Class Al1 4.71%, 6/25/13+ .................... 3 3,420 Series 2004-RS12, Class Al1 4.67%, 5/25/24+ .................... 36 36,456 Series 2005-RS1, Class Al1 4.64%, 1/25/35+ .................... 54 53,600 Residential Asset Securities Corp. Series 2002-KS7, Class A2 4.90%, 11/25/32+ ................... 29 28,994 Series 2004-KS7, Class Al1 4.68%, 10/25/21+ ................... 9 9,220 Series 2003-KS3, Class A2 4.83%, 5/25/33+ .................... 19 19,305 Residential Funding Mortgage Securities, Inc. Series 2004-HS2, Class Al1 4.53%, 12/25/18 .................... 0 288 Structured Asset Investment Loan Trust Series 2005-1, Class A3 4.50%, 2/25/14+ .................... 10 10,368 20 -------------------------------------------------------------------------------- Separate Account No. 10 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 (Concluded) -------------------------------------------------------------------------------- Principal Amount Company (000) U.S.$ Value -------------------------------------------------------------------------------- Series 2004-5, Class A2 4.71%, 5/25/34+ ....................... $ 23 $ 22,566 ----------- Total Asset Backed Securities ............ 988,881 ----------- COLLATERALIZED MORTGAGE OBLIGATIONS - 0.6% Home Equity Mortgage Trust Series 2005-4 4.74%, 1/25/36 ........................ 60 59,259 Credit-Based Asset Servicing and Securities, Inc. Series 2003-CB1, Class AF 3.45%, 1/25/33 ........................ 71 69,883 Merrill Lynch Mortgage Investors, Inc. Series 2005-Class A8 5.25%, 8/25/36 ........................ 93 92,713 Residential Funding Mortgage Securities, Inc. Series 2005-HI2, Class A3 4.46%, 5/25/35 ........................ 55 53,951 Washington Mutual Series 2005-AR2, Class 2a22 4.75%, 1/25/45+ ....................... 70 69,914 ----------- Total Collateralized Mortgage Obligations .......................... 345,720 ----------- SOVEREIGN DEBT OBLIGATIONS - 0.5% Mexico - 0.5% United Mexican States 4.63%, 10/08/08 ....................... 160 158,000 7.50%, 1/14/12 ........................ 140 156,100 ----------- Total Sovereign Debt Obligations ......... 314,100 ----------- Total Long-Term Debt Debt Securities (Amortized Cost $22,408,793).......... 22,355,731 ----------- SHORT-TERM DEBT SECURITIES - 8.1% U.S. Government & Government Sponsored Agency Obligations - 6.1% Federal National Mortgage Association 4.18%, 2/10/06 ........................ 1,500 1,487,808 Federal Home Loan Bank 4.02%, 1/11/06 ........................ 1,420 1,410,803 Federal Home Loan Mortgage Corporation 4.24%, 3/03/06 ........................ 765 758,693 ----------- 3,657,304 ----------- Time Deposits - 2.0% JPMorgan Nassau 3.72%, 1/03/2006 ...................... 1,165 1,164,793 ----------- Total Short-Term Debt Securities (Amortized Cost $4,822,097)............ 4,822,097 ----------- Total Investments - 108.1% (Cost/Amortized Cost $56,987,153).......................... 64,459,585 Other Assets Less Liabilities - (8.1)% ................. (4,809,505) ----------- Net Assets - 100.0% ...................... $59,650,080 =========== + Variable rate coupon, rate shown as of December 31, 2005. (a) Non-income producing security. Glossary: ADR - American Depository Receipt TBA - To Be Announced TIPS - Treasury Inflation Protected Security The accompanying notes are an intergral part of these finanancial statements. 21 -------------------------------------------------------------------------------- Separate Account No. 4 (Pooled) of AXA Equitable Life Insurance Company
Statement of Assets and Liabilities December 31, 2005 ---------------------------------------------------------------------------------------- Assets: Investments (Notes 2 and 3): Common stocks -- at value (cost: $543,325,267)........................... $727,707,317 Short-term debt securities -- at value (amortized cost: $15,064,398)..... 15,064,398 Interest and dividends receivable ........................................ 246,170 ---------------------------------------------------------------------------------------- Total assets ............................................................. 743,017,885 ---------------------------------------------------------------------------------------- Liabilities: Due to AXA Equitable's General Account ................................... 1,050,401 Due to custodian ......................................................... 4,676,054 Accrued expenses ......................................................... 646,613 ---------------------------------------------------------------------------------------- Total liabilities ........................................................ 6,373,068 ---------------------------------------------------------------------------------------- Net Assets ............................................................... $736,644,817 ======================================================================================== Amount retained by AXA Equitable in Separate Account No. 4 ............... $ 3,382,850 Net assets attributable to contract owners ............................... 690,032,245 Net assets allocated to contracts in payout period ....................... 43,229,722 ---------------------------------------------------------------------------------------- Net Assets ............................................................... $736,644,817 ======================================================================================== Units Outstanding Unit Values ------------------- -------------- Institutional ...................................... 44,384 $ 8,269.13 RIA ................................................ 20,696 780.43 Momentum Strategy .................................. 5,210 101.21 MRP ................................................ 140,987 317.72 ADA ................................................ 759,106 386.86 EPP ................................................ 17,614 803.45
The accompanying notes are an integral part of these financial statements. 22 -------------------------------------------------------------------------------- Separate Account No. 4 (Pooled) of AXA Equitable Life Insurance Company
Statement of Operations Year Ended December 31, 2005 -------------------------------------------------------------------------------------- Investment Income (Note 2): Dividends (net of foreign taxes withheld of $51,069).................... $ 3,052,019 Interest ............................................................... 212,617 -------------------------------------------------------------------------------------- Total investment income ................................................ 3,264,636 -------------------------------------------------------------------------------------- Expenses (Note 5): Investment management fees ............................................. (1,358,503) Operating and expense charges .......................................... (2,446,134) -------------------------------------------------------------------------------------- Total expenses ......................................................... (3,804,637) -------------------------------------------------------------------------------------- Net investment loss .................................................... (540,001) -------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) on Investments (Note 2): Realized gain from security and foreign currency transactions .......... 74,925,731 Change in unrealized appreciation /depreciation of investments ......... 6,608,967 -------------------------------------------------------------------------------------- Net realized and unrealized gain on investments ........................ 81,534,698 -------------------------------------------------------------------------------------- Net Increase in Net Assets Attributable to Operations .................. $ 80,994,697 ======================================================================================
The accompanying notes are an integral part of these financial statements. 23 -------------------------------------------------------------------------------- Separate Account No. 4 (Pooled) of AXA Equitable Life Insurance Company
Statements of Changes in Net Assets ----------------------------------------------------------------------------------------------------------------- Year Ended December 31, 2005 2004 ----------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets: From Operations: Net investment loss .......................................................... $ (540,001) $ (571,014) Net realized gain on investments and foreign currency transactions ........... 74,925,731 68,479,781 Change in unrealized appreciation/depreciation of investments ................ 6,608,967 33,687,073 ----------------------------------------------------------------------------------------------------------------- Net increase in net assets attributable to operations ........................ 80,994,697 101,595,840 ----------------------------------------------------------------------------------------------------------------- From Contributions and Withdrawals: Contributions ................................................................ 76,456,922 92,820,015 Withdrawals .................................................................. (151,318,308) (150,234,175) Asset management fees ........................................................ (1,067,272) (1,128,020) Administrative fees .......................................................... (345,104) (419,710) ----------------------------------------------------------------------------------------------------------------- Net decrease in net assets attributable to contributions and withdrawals ..... (76,273,762) (58,961,890) ----------------------------------------------------------------------------------------------------------------- Net increase in net assets attributable to AXA Equitable's transactions ...... 6,187 12,083 ----------------------------------------------------------------------------------------------------------------- Increase in Net Assets ....................................................... 4,727,121 42,646,033 Net Assets -- Beginning of Year .............................................. 731,917,696 689,271,663 ----------------------------------------------------------------------------------------------------------------- Net Assets -- End of Year .................................................... $ 736,644,817 $ 731,917,696 =================================================================================================================
The accompanying notes are an integral part of these financial statements. 24 -------------------------------------------------------------------------------- Separate Account No. 4 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 -------------------------------------------------------------------------------- Company Shares U.S. $ Value -------------------------------------------------------------------------------- COMMON STOCKS - 98.8% Technology - 33.3% Communication Equipment - 7.5% Corning, Inc. (a) .......................... 214,100 $ 4,209,206 Juniper Networks, Inc. (a) ................. 1,022,700 22,806,210 QUALCOMM, Inc. ............................. 649,300 27,971,844 ----------- 54,987,260 ----------- Computer Hardware/Storage - 5.2% Apple Computer, Inc. (a) ................... 378,000 27,174,420 EMC Corp. (a) .............................. 808,100 11,006,322 ----------- 38,180,742 ----------- Computer Services - 1.0% Infosys Technologies Ltd. (ADR) ............ 95,565 7,727,386 ----------- Internet Media - 8.3% Google, Inc. Cl. A (a) ..................... 82,500 34,225,950 Yahoo! Inc. (a) ............................ 681,700 26,709,006 ----------- 60,934,956 ----------- Miscellaneous - 2.2% Amphenol Corp. Cl. A ....................... 367,600 16,269,976 ----------- Semi-Conductor Components - 6.5% Advanced Micro Devices, Inc. (a) ........... 468,900 14,348,340 Broadcom Corp. Cl. A (a) ................... 428,500 20,203,775 Marvell Technology Group Ltd. (a) .......... 250,400 14,044,936 ----------- 48,597,051 ----------- Software - 2.6% Autodesk, Inc. (a) ......................... 85,700 3,680,815 Business Objects SA (ADR) (a) .............. 122,000 4,930,020 NAVTEQ Corp. (a) ........................... 107,100 4,698,477 SAP AG (ADR) ............................... 126,500 5,701,355 ----------- 19,010,667 ----------- 245,708,038 ----------- Finance - 18.4% Banking - Money Center - 1.1% JPMorgan Chase & Co. ....................... 200,000 7,938,000 ----------- Brokerage & Money Management - 9.9% The Charles Schwab Corp. ................... 492,100 7,219,107 Goldman Sachs Group, Inc. .................. 173,700 22,183,227 Legg Mason, Inc. ........................... 295,800 35,404,302 Merrill Lynch & Co. Inc. ................... 115,800 7,843,134 ----------- 72,649,770 ----------- Insurance - 3.5% American International Group, Inc. ......... 377,100 25,729,533 ----------- Miscellaneous - 3.9% Citigroup, Inc. ............................ 483,600 23,469,108 State Street Corp. ......................... 97,500 5,405,400 ----------- 28,874,508 ----------- 135,191,811 ----------- Health Care - 17.6% Biotechnology - 4.4% Affymetrix, Inc. (a) ....................... 111,300 5,314,575 Genentech, Inc. (a) ........................ 196,000 18,130,000 Gilead Sciences, Inc. (a) .................. 174,400 9,178,672 ----------- 32,623,247 ----------- Drugs - 1.6% Teva Pharmaceutical Industries Ltd. (ADR) .................................. 266,200 11,449,262 ----------- Medical Products - 4.6% Alcon, Inc. ................................ 78,200 10,134,720 St. Jude Medical, Inc. (a) ................. 367,800 18,463,560 Zimmer Holdings, Inc. (a) .................. 81,100 5,469,384 ----------- 34,067,664 ----------- Medical Services - 7.0% Caremark Rx, Inc. (a) ...................... 214,600 11,114,134 UnitedHealth Group, Inc. ................... 147,400 9,159,436 WellPoint, Inc. (a) ........................ 388,800 31,022,352 ----------- 51,295,922 ----------- 129,436,095 ----------- Consumer Services - 12.6% Advertising - 0.8% Getty Images, Inc. (a) ..................... 66,800 5,963,236 ----------- Apparel - 1.3% Coach, Inc. (a) ............................ 177,000 5,901,180 Urban Outfitters, Inc. (a) ................. 143,700 3,637,047 ----------- 9,538,227 ----------- Broadcasting & Cable - 0.5% XM Satellite Radio Holdings Inc. Cl. A (a) .................................. 126,600 3,453,648 ----------- Miscellaneous - 2.4% Corporate Executive Board Co. .............. 50,700 4,547,790 Iron Mountain, Inc. (a) .................... 176,700 7,460,274 Strayer Education, Inc. .................... 61,400 5,753,180 ----------- 17,761,244 ----------- Retail - General Merchandise - 7.6% eBay, Inc. (a) ............................. 549,700 23,774,525 Home Depot, Inc. ........................... 181,000 7,326,880 Lowe's Cos, Inc. ........................... 327,800 21,851,148 Williams-Sonoma, Inc. (a) .................. 68,400 2,951,460 ----------- 55,904,013 ----------- 92,620,368 ----------- Consumer Manufacturing - 8.1% Building & Related - 7.9% Centex Corp. ............................... 224,400 16,042,356 DR Horton, Inc. ............................ 195,066 6,969,708 Lennar Corp. Cl. A ......................... 229,500 14,004,090 25 -------------------------------------------------------------------------------- Separate Account No. 4 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 (Concluded) -------------------------------------------------------------------------------- Company Shares U.S. $ Value -------------------------------------------------------------------------------- NVR, Inc. (a) ........................ 20,200 $14,180,400 Pulte Homes, Inc. .................... 168,700 6,640,032 ----------- 57,836,586 ----------- Textile Products - 0.2% Building Material Holding Corp. ...... 19,000 1,295,990 ----------- 59,132,576 ----------- Capital Goods - 2.6% Machinery - 0.7% Actuant Corp. Cl. A .................. 88,800 4,955,040 ----------- Miscellaneous - 1.9% General Electric Co. ................. 212,600 7,451,630 United Technologies Corp. ............ 123,400 6,899,294 ----------- 14,350,924 ----------- 19,305,964 ----------- Energy - 2.6% Oil Service - 2.6% Schlumberger Ltd. .................... 196,800 19,119,120 ----------- Aerospace & Defense - 1.3% Aerospace - 0.5% Boeing Co. ........................... 53,800 3,778,912 ----------- Defense Electronics - 0.8% L-3 Communications Holdings, Inc...... 83,000 6,171,050 ----------- 9,949,962 ----------- Multi-Industry Companies - 1.1% Danaher Corp. ........................ 139,300 7,770,154 ----------- Consumer Staples - 0.7% Household Products - 0.2% Procter & Gamble Co. ................. 25,700 1,487,516 ----------- Retail - Food & Drug - 0.5% Whole Foods Market, Inc. ............. 51,200 3,962,368 ----------- 5,449,884 ----------- Basic Industry - 0.5% Chemicals - 0.5% Hexcel Corp. (a) ..................... 222,900 4,023,345 ----------- Total Common Stocks - 98.8% (Cost $543,325,267)............... 727,707,317 ----------- ---------------------------------------------------------------------- Principal Amount (000) ---------------------------------------------------------------------- SHORT-TERM DEBT SECURITIES - 2.0% Time Deposits - 2.0% JPMorgan Nassau 3.72%, 1/03/2006 .................... $15,064 15,064,398 ------------ Total Short-Term Debt Securities (Amortized Cost $15,064,398)......... 15,064,398 ------------ Total Investments -100.8% (Cost/Amortized Cost $558,389,665)........................ 742,771,715 Other Assets Less Liabilities - (0.8%) ................ (6,126,898) ------------ Net Assets - 100.0% ..................... $736,644,817 ============ (a) Non-income producing security. Glossary: ADR - American Depositary Receipt The accompanying notes are an integral part of these financial statements. 26 -------------------------------------------------------------------------------- Separate Account No. 3 (Pooled) of AXA Equitable Life Insurance Company
Statement of Assets and Liabilities December 31, 2005 ------------------------------------------------------------------------------------ Assets: Investments (Notes 2 and 3): Common stocks -- at value (cost: $105,761,047)....................... $111,641,765 Cash ................................................................. 89,824 Receivable for investment securities sold ............................ 599,775 Dividends receivable ................................................. 6,969 ------------------------------------------------------------------------------------ Total assets ......................................................... 112,338,333 ------------------------------------------------------------------------------------ Liabilities: Payable for investment securities purchased .......................... 475,167 Due to AXA Equitable Life's General Account .......................... 390,815 Accrued expenses ..................................................... 97,446 ------------------------------------------------------------------------------------ Total liabilities .................................................... 963,428 ------------------------------------------------------------------------------------ Net Assets Attributable to Contractowners or in Accumulation ......... $111,374,905 ==================================================================================== Units Outstanding Unit Values ------------------- --------------- Institutional ............. 2,924 $ 27,618.80 RIA ....................... 27,365 260.60 Momentum Strategy ......... 9,720 95.47 MRP ....................... 405,866 55.68 EPP ....................... -- 260.60
The accompanying notes are an integral part of these financial statements. 27 -------------------------------------------------------------------------------- Separate Account No. 3 (Pooled) of AXA Equitable Life Insurance Company
Statement of Operations Year Ended December 31, 2005 -------------------------------------------------------------------------------------- Investment Income (Note 2): Dividends .............................................................. $ 118,059 Interest ............................................................... 3,794 -------------------------------------------------------------------------------------- Total investment income ................................................ 121,853 -------------------------------------------------------------------------------------- Expenses (Note 5): Investment management fees ............................................. (169,321) Operating and expense charges .......................................... (332,747) -------------------------------------------------------------------------------------- Total expenses ......................................................... (502,068) -------------------------------------------------------------------------------------- Net investment loss .................................................... (380,215) -------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) on Investments (Note 2): Realized gain from security and foreign currency transactions .......... 16,614,068 Change in unrealized appreciation /depreciation of investments ......... (9,259,982) -------------------------------------------------------------------------------------- Net realized and unrealized gain on investments ........................ 7,354,086 -------------------------------------------------------------------------------------- Net Increase in Net Assets Attributable to Operations .................. $ 6,973,871 ======================================================================================
The accompanying notes are an integral part of these financial statements. 28 -------------------------------------------------------------------------------- Separate Account No. 3 (Pooled) of AXA Equitable Life Insurance Company
------------------------------------------------------------------------------------------------------------------------ Year Ended December 31, 2005 2004 ------------------------------------------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets: From Operations: Net investment loss ................................................................... $ (380,215) $ (348,032) Net realized gain on investments and foreign currency transactions .................... 16,614,068 28,292,406 Change in unrealized appreciation/depreciation of investments ......................... (9,259,982) (7,908,599) ------------------------------------------------------------------------------------------------------------------------ Net increase in net assets attributable to operations ................................. 6,973,871 20,035,775 ------------------------------------------------------------------------------------------------------------------------ From Contributions and Withdrawals: Contributions ......................................................................... 26,183,587 32,226,073 Withdrawals ........................................................................... (43,124,714) (39,756,059) Asset management fees ................................................................. (212,299) (231,150) Administrative fees ................................................................... (84,867) (105,982) ------------------------------------------------------------------------------------------------------------------------ Net decrease in net assets attributable to contributions and withdrawals .............. (17,238,293) (7,867,118) ------------------------------------------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets ..................................................... (10,264,422) 12,168,657 ------------------------------------------------------------------------------------------------------------------------ Net Assets Attributable to Contractowners or in Accumulation -- Beginning of Year ..... 121,639,327 109,470,670 ------------------------------------------------------------------------------------------------------------------------ Net Assets Attributable to Contractowners or in Accumulation -- End of Year ........... $ 111,374,905 $ 121,639,327 ========================================================================================================================
The accompanying notes are an integral part of these financial statements. 29 -------------------------------------------------------------------------------- Separate Account No. 3 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 ------------------------------------------------------------------------------ Company Shares U.S. $ Value ------------------------------------------------------------------------------ COMMON STOCKS - 100.2% Technology - 45.6% Communication Equipment - 6.9% JDS Uniphase Corp. (a) ................... 1,368,686 $3,230,099 Juniper Networks, Inc. (a) ............... 202,218 4,509,461 ---------- 7,739,560 ---------- Communication Services - 4.0% Level 3 Communications, Inc. (a) ......... 1,542,727 4,427,626 ---------- Computer Peripherals - 2.3% Network Appliance, Inc. (a) .............. 94,669 2,556,063 ---------- Internet Infrastructure - 2.1% VeriSign, Inc. (a) ....................... 106,029 2,324,156 ---------- Internet Media - 3.2% Equinix, Inc. (a) ........................ 30,734 1,252,718 RealNetworks, Inc. (a) ................... 305,567 2,371,200 ---------- 3,623,918 ---------- Miscellaneous - 3.6% Harman International Industries, Inc. ..................... 19,422 1,900,443 Trimble Navigation Ltd. (a) .............. 60,318 2,140,686 ---------- 4,041,129 ---------- Semiconductor Capital Equipment - 6.5% Formfactor, Inc. (a) ..................... 44,466 1,086,305 KLA-Tencor Corp. ......................... 90,931 4,485,626 Lam Research Corp. (a) ................... 46,109 1,645,169 ---------- 7,217,100 ---------- Semiconductor Components - 10.4% Advanced Micro Devices, Inc. (a) ......... 51,575 1,578,195 Broadcom Corp. Cl. A (a) ................. 47,338 2,231,987 PMC - Sierra, Inc. (a) ................... 325,015 2,505,865 Silicon Laboratories, Inc. (a) ........... 123,180 4,515,779 Spansion Inc. Cl. A (a) .................. 57,100 794,832 ---------- 11,626,658 ---------- Software - 6.6% Autodesk, Inc. (a) ....................... 37,941 1,629,566 Citrix Systems, Inc. (a) ................. 38,746 1,115,110 McAfee, Inc. (a) ......................... 41,944 1,137,941 NAVTEQ Corp. (a) ......................... 79,480 3,486,787 ---------- 7,369,404 ---------- 50,925,614 ---------- Consumer Services - 27.1% Advertising - 1.6% Audible, Inc. (a) ........................ 136,369 1,750,978 ---------- Broadcasting & Cable - 3.4% XM Satellite Radio Holdings Inc. Cl. A (a) ............................ 137,745 3,757,684 ---------- Cellular Communications - 2.2% Neustar Inc.Cl. A (a) .................... 78,795 2,402,459 ---------- Entertainment & Leisure - 2.7% Wynn Resorts Ltd. (a) .................... 55,887 3,065,402 ---------- Miscellaneous - 9.3% Apollo Group, Inc. Cl. A (a) ............. 51,512 3,114,416 CNET Networks, Inc. (a) .................. 189,343 2,781,449 Homestore, Inc. (a) ...................... 479,571 2,445,812 Shanda Interactive Entertainment Ltd. (ADR) (a) ....................... 133,006 2,027,011 ---------- 10,368,688 ---------- Retail - General Merchandise - 7.9% Amazon.Com, Inc. (a) ..................... 64,922 3,061,072 Bed Bath & Beyond, Inc. (a) .............. 65,909 2,382,610 Tiffany & Co. ............................ 41,000 1,569,890 Williams-Sonoma, Inc. (a) ................ 44,153 1,905,202 ---------- 8,918,774 ---------- 30,263,985 ---------- Health Care - 17.9% Biotechnology - 10.9% Affymetrix, Inc. (a) ..................... 74,452 3,555,083 Applera Corp. - Applied Biosystems Group ................................ 84,429 2,242,434 Applera Corp. - Celera Genomics Group (a) ............................ 222,176 2,435,049 Compugen Ltd. (a) ........................ 257,860 1,098,484 deCODE genetics, Inc. (a) ................ 143,700 1,186,962 Myriad Genetics (a) ...................... 49,760 1,035,008 Vertex Pharmaceuticals, Inc. (a) ......... 23,100 639,177 ---------- 12,192,197 ---------- Medical Products - 4.7% Cerus Corp. (a) .......................... 240,565 2,441,734 Given Imaging Ltd. (a) ................... 104,750 2,733,661 ---------- 5,175,395 ---------- Medical Services - 2.3% Cepheid, Inc. (a) ........................ 287,241 2,521,976 ---------- 19,889,568 ---------- Finance - 7.1% Brokerage & Money Management - 3.0% Ameritrade Holding Corp. (a) ............. 49,580 1,189,920 International Securities Exchange Inc. Cl. A (a) ....................... 78,431 2,158,421 ---------- 3,348,341 ---------- 30 -------------------------------------------------------------------------------- Separate Account No. 3 (Pooled) of AXA Equitable Life Insurance Company Portfolio of Investments -- December 31, 2005 (Concluded) ------------------------------------------------------------------------------- Company Shares U.S. $ Value ------------------------------------------------------------------------------- Miscellaneous - 4.1% Chicago Mercantile Exchange Holdings Inc. ......................... 5,300 $ 1,947,697 The Nasdaq Stock Market, Inc. (a) ......... 72,903 2,564,728 ------------ 4,512,425 ------------ 7,860,766 ------------ Energy - 1.6% Miscellaneous - 1.6% Energy Conversion Devices (a) ............. 17,094 696,581 Plug Power, Inc. (a) ...................... 204,809 1,050,670 ------------ 1,747,251 ------------ Transportation - 0.9% Air Freight - 0.9% UTI Worldwide, Inc. ....................... 10,282 $ 954,581 ------------ Total Common Stocks - 100.2% (Cost $105,761,047).................... 111,641,765 Other Assets Less Liabilities - (0.2)% .................. (266,860) ------------ Net Assets - 100.0% ....................... $111,374,905 ============ (a) Non-income producing security. Glossary: ADR - American Depositary Receipt The accompanying notes are an integral part of these financial statements. 31 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Assets and Liabilities December 31, 2005 --------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------- EQ/Alliance EQ/Alliance Intermediate AXA Premier VIP AXA Premier VIP Growth Government High Yield Technology and Income Securities ------------------------------------------------------------------------------------------------------------------------- Assets: Investments in shares of The Trust - at fair value .............................................. $ 1,099,351 $ 2,109,549 $ 4,662,793 $ 2,743,285 Receivable for Trust shares sold .................... 795 -- 35,924 -- Receivable for policy-related transactions .......... -- 42,003 -- -- ------------------------------------------------------------------------------------------------------------------------- Total assets ..................................... 1,100,146 2,151,552 4,698,717 2,743,285 ------------------------------------------------------------------------------------------------------------------------- Liabilities: Payable for Trust shares purchased .................. -- 15,445 -- 7,259 Payable for policy-related transactions ............. 925 -- 36,526 18,950 ------------------------------------------------------------------------------------------------------------------------- Total liabilities ................................ 925 15,445 36,526 26,209 ------------------------------------------------------------------------------------------------------------------------- Net assets .......................................... $ 1,099,221 $ 2,136,107 $ 4,662,191 $ 2,717,076 ========================================================================================================================= Accumulation Units .................................. 1,099,221 2,136,107 4,662,191 2,717,076 Retained by Equitable Life in Separate Account No. 66 ............................................. -- -- -- -- ------------------------------------------------------------------------------------------------------------------------- Total net assets .................................... 1,099,221 2,136,107 4,662,191 2,717,076 ========================================================================================================================= Investment in shares of the Trust - at cost ......... 1,126,823 1,792,753 4,010,503 2,830,619 Trust shares held Class A ............................................ 201,028 -- 249,790 47,266 Class B ............................................ -- 206,189 -- 234,969 Units outstanding (000's): MRP ................................................ -- 147 -- 222 RIA ................................................ 6 3 13 3 Unit value: MRP ................................................ -- $ 11.94 -- $ 10.23 RIA ................................................ $ 195.48 $ 121.82 $ 355.66 $ 182.87
The accompanying notes are an integral part of these financial statements. 32 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Assets and Liabilities (Continued) December 31, 2005 -------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------- EQ/Alliance EQ/Alliance EQ/Alliance EQ/Alliance Small Cap International Large Cap Growth Quality Bond Growth ------------------------------------------------------------------------------------------------------------------------- Assets: Investments in shares of The Trust - at fair value ..............................................$19,789,335 $ 417,441 $ 1,063,381 $ 1,063,201 Receivable for Trust shares sold .................... 243,320 26,483 887 744 Receivable for policy-related transactions .......... -- -- -- -- ------------------------------------------------------------------------------------------------------------------------- Total assets ..................................... 20,032,655 443,924 1,064,268 1,063,945 ------------------------------------------------------------------------------------------------------------------------- Liabilities: Payable for Trust shares purchased .................. -- -- -- -- Payable for policy-related transactions ............. 255,164 26,483 1,021 886 ------------------------------------------------------------------------------------------------------------------------- Total liabilities ................................ 255,164 26,483 1,021 886 ------------------------------------------------------------------------------------------------------------------------- Net assets ..........................................$19,777,491 $ 417,441 $ 1,063,247 $ 1,063,059 ========================================================================================================================= Accumulation Units .................................. 19,777,491 417,441 1,063,247 1,063,059 Retained by Equitable Life in Separate Account No. 66 ............................................. -- -- -- -- ------------------------------------------------------------------------------------------------------------------------- Total net assets .................................... 19,777,491 417,441 1,063,247 1,063,059 ========================================================================================================================= Investment in shares of the Trust - at cost ......... 13,691,156 313,746 1,092,930 785,573 Trust shares held Class A ............................................ 1,558,530 -- 106,163 65,301 Class B ............................................ -- 54,040 -- -- Units outstanding (000's): MRP ................................................ 871 -- -- -- RIA ................................................ 18 6 5 6 Unit value: MRP ................................................ $ 19.36 -- -- -- RIA ................................................ $ 167.42 $ 74.54 $ 204.72 $ 174.22
The accompanying notes are an integral part of these financial statements. 33 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Assets and Liabilities (Continued) December 31, 2005 --------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------- EQ/Bernstein EQ/Calvert EQ/Capital Diversified Socially EQ/Capital Guardian Value Responsible Guardian Growth International ------------------------------------------------------------------------------------------------------------------------- Assets: Investments in shares of The Trust - at fair value .............................................. $ 8,933,168 $ 1,245,546 $ 39,827 $ 2,033,137 Receivable for Trust shares sold .................... 24,118 23,485 41 -- Receivable for policy-related transactions .......... -- -- -- 21,058 ------------------------------------------------------------------------------------------------------------------------- Total assets ..................................... 8,957,286 1,269,031 39,868 2,054,195 ------------------------------------------------------------------------------------------------------------------------- Liabilities: Payable for Trust shares purchased .................. -- -- -- 15,223 Payable for policy-related transactions ............. 33,125 36,485 40 -- ------------------------------------------------------------------------------------------------------------------------- Total liabilities ................................ 33,125 36,485 40 15,223 ------------------------------------------------------------------------------------------------------------------------- Net assets .......................................... $ 8,924,161 $ 1,232,546 $ 39,828 $ 2,038,972 ========================================================================================================================= Accumulation Units .................................. 8,924,161 1,232,546 39,828 2,038,972 Retained by Equitable Life in Separate Account No. 66 ............................................. -- -- -- -- ------------------------------------------------------------------------------------------------------------------------- Total net assets .................................... 8,924,161 1,232,546 39,828 2,038,972 ========================================================================================================================= Investment in shares of the Trust - at cost ......... 7,896,690 1,091,956 32,118 1,705,631 Trust shares held Class A ............................................ -- -- -- -- Class B ............................................ 616,130 151,994 3,048 162,948 Units outstanding (000's): MRP ................................................ 636 156 -- 160 RIA ................................................ 6 -- 1 1 Unit value: MRP ................................................ $ 12.72 $ 8.14 -- $ 11.46 RIA ................................................ $ 130.84 $ 93.56 $ 75.98 $ 123.42
The accompanying notes are an integral part of these financial statements. 34 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Assets and Liabilities December 31, 2005 --------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------- EQ/Capital EQ/Capital Guardian Guardian EQ/Equity EQ/Evergreen Research US Equity 500 Index Omega ------------------------------------------------------------------------------------------------------------------------- Assets: Investments in shares of The Trust - at fair value .............................................. $ 6,349,362 $ 1,630,591 $ 19,287,160 $ 399 Receivable for Trust shares sold .................... 16,998 27,959 69,442 1 Receivable for policy-related transactions .......... 31,303 -- -- -- ------------------------------------------------------------------------------------------------------------------------- Total assets ..................................... 6,397,663 1,658,550 19,356,602 400 ------------------------------------------------------------------------------------------------------------------------- Liabilities: Payable for Trust shares purchased .................. -- -- -- -- Payable for policy-related transactions ............. -- 17,639 46,445 2 ------------------------------------------------------------------------------------------------------------------------- Total liabilities ................................ -- 17,639 46,445 2 ------------------------------------------------------------------------------------------------------------------------- Net assets .......................................... $ 6,397,663 $ 1,640,911 $ 19,310,157 $ 398 ========================================================================================================================= Accumulation Units .................................. 6,397,663 1,640,911 19,310,157 398 Retained by Equitable Life in Separate Account No. 66 ............................................. -- -- -- -- ------------------------------------------------------------------------------------------------------------------------- Total net assets .................................... 6,397,663 1,640,911 19,310,157 398 ========================================================================================================================= Investment in shares of the Trust - at cost ......... 4,959,576 1,540,456 17,515,417 381 Trust shares held Class A ............................................ -- -- 204,212 -- Class B ............................................ 507,360 141,372 618,820 44 Units outstanding (000's): MRP ................................................ 371 115 1,768 -- RIA ................................................ 3 -- 15 -- Unit value: MRP ................................................ $ 16.19 $ 13.84 $ 8.23 -- RIA ................................................ $ 127.38 $ 123.78 $ 317.06 $ 90.54
The accompanying notes are an integral part of these financial statements. 35 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Assets and Liabilities (Continued) December 31, 2005 --------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------- EQ/FI EQ/FI EQ/Janus EQ/JPMorgan Mid Cap Small/Mid Large Cap Value Growth Cap Value Growth Opportunities ------------------------------------------------------------------------------------------------------------------------- Assets: Investments in shares of The Trust - at fair value ........................................... $ 496,394 $ 10,927,890 $ 106,045 $ 359,844 Receivable for Trust shares sold ................. 434 -- 87 1,195 Receivable for policy-related transactions ....... -- 37,603 -- -- ------------------------------------------------------------------------------------------------------------------------- Total assets .................................. 496,828 10,965,493 106,132 361,039 ------------------------------------------------------------------------------------------------------------------------- Liabilities: Payable for Trust shares purchased ............... -- 44,226 -- -- Payable for policy-related transactions .......... 434 -- 87 1,196 ------------------------------------------------------------------------------------------------------------------------- Total liabilities ............................. 434 44,226 87 1,196 ------------------------------------------------------------------------------------------------------------------------- Net assets ....................................... $ 496,394 $ 10,921,267 $ 106,045 $ 359,843 ========================================================================================================================= Accumulation Units ............................... 496,394 10,921,267 106,045 359,843 Retained by Equitable Life in Separate Account No. 66 .......................................... -- -- -- -- ------------------------------------------------------------------------------------------------------------------------- Total net assets ................................. 496,394 10,921,267 106,045 359,843 ========================================================================================================================= Investment in shares of the Trust - at cost ...... 514,785 10,047,114 81,115 321,558 Trust shares held Class A ......................................... -- -- -- -- Class B ......................................... 48,393 783,448 15,528 28,530 Units outstanding (000's): MRP ............................................. -- 715 -- -- RIA ............................................. 4 4 2 3 Unit value: MRP ............................................. -- $ 14.20 -- -- RIA ............................................. $ 125.66 $ 174.39 $ 68.54 $ 132.10
The accompanying notes are an integral part of these financial statements. 36 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Assets and Liabilities (Continued) December 31, 2005 --------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------- EQ/Lazard EQ/Mercury EQ/Mercury Small Cap EQ/Marsico Basic Value International Value Focus Equity Value ------------------------------------------------------------------------------------------------------------------------- Assets: Investments in shares of The Trust - at fair value .............................................. $ 748,834 $ 675,851 $ 460,745 $ 518,081 Receivable for Trust shares sold .................... 26,370 553 5,541 20,684 Receivable for policy-related transactions .......... -- -- -- -- ------------------------------------------------------------------------------------------------------------------------- Total assets ..................................... 775,204 676,404 466,286 538,765 ------------------------------------------------------------------------------------------------------------------------- Liabilities: Payable for Trust shares purchased .................. -- -- -- -- Payable for policy-related transactions ............. 26,370 554 5,541 20,684 ------------------------------------------------------------------------------------------------------------------------- Total liabilities ................................ 26,370 554 5,541 5,541 ------------------------------------------------------------------------------------------------------------------------- Net assets .......................................... $ 748,834 $ 675,850 $ 460,745 $ 518,081 ========================================================================================================================= Accumulation Units .................................. 748,834 675,850 460,745 518,081 Retained by Equitable Life in Separate Account No. 66 ............................................. -- -- -- -- ------------------------------------------------------------------------------------------------------------------------- Total net assets .................................... 748,834 675,850 460,745 518,081 ========================================================================================================================= Investment in shares of the Trust - at cost ......... 766,022 606,320 465,154 439,756 Trust shares held Class A ............................................ -- -- -- -- Class B ............................................ 55,981 42,925 30,538 36,480 Units outstanding (000's): MRP ................................................ -- -- -- -- RIA ................................................ 4 4 2 4 Unit value: MRP ................................................ -- -- -- -- RIA ................................................ $ 197.17 $ 150.75 $ 187.64 $ 134.82
The accompanying notes are an integral part of these financial statements. 37 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Assets and Liabilities (Continued) December 31, 2005 --------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------- EQ/MFS EQ/MFS EQ/Small Emerging Investors EQ/Money Company Growth Companies Trust Market Index ------------------------------------------------------------------------------------------------------------------------- Assets: Investments in shares of The Trust - at fair value .............................................. $ 2,902,480 $ 97,218 $ 969,139 $ 3,168,283 Receivable for Trust shares sold .................... 36,811 93 811 -- Receivable for policy-related transactions .......... -- -- -- 38,716 ------------------------------------------------------------------------------------------------------------------------- Total assets ..................................... 2,939,291 97,311 969,950 3,206,999 ------------------------------------------------------------------------------------------------------------------------- Liabilities: Payable for Trust shares purchased .................. -- -- -- 1,033 Payable for policy-related transactions ............. 23,891 92 948 -- ------------------------------------------------------------------------------------------------------------------------- Total liabilities ................................ 23,891 92 948 1,033 ------------------------------------------------------------------------------------------------------------------------- Net assets .......................................... $ 2,915,400 $ 97,219 $ 969,002 $ 3,205,966 ========================================================================================================================= Accumulation Units .................................. 2,915,400 97,219 969,002 3,205,966 Retained by Equitable Life in Separate Account No. 66 ............................................. -- -- -- -- ------------------------------------------------------------------------------------------------------------------------- Total net assets .................................... 2,915,400 97,219 969,002 3,205,966 ========================================================================================================================= Investment in shares of the Trust - at cost ......... 2,355,762 90,364 974,155 2,975,257 Trust shares held Class A ............................................ -- -- 969,122 -- Class B ............................................ 203,135 9,624 -- 271,302 Units outstanding (000's): MRP ................................................ 434 -- -- 237 RIA ................................................ 6 1 6 -- Unit value: MRP ................................................ $ 5.14 -- -- $ 13.84 RIA ................................................ $ 119.42 $ 100.22 $ 155.57 --
The accompanying notes are an integral part of these financial statements. 38 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Assets and Liabilities (Concluded) December 31, 2005 --------------------------------------------------------------------------------
----------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity ----------------------------------------------------------------------- Assets: Investments in shares of The Trust - at fair value .............................................. $ 516,492 Receivable for Trust shares sold .................... 437 Receivable for policy-related transactions .......... -- ----------------------------------------------------------------------- Total assets ..................................... 516,929 ----------------------------------------------------------------------- Liabilities: Payable for Trust shares purchased .................. -- Payable for policy-related transactions ............. 438 ----------------------------------------------------------------------- Total liabilities ................................ 438 ----------------------------------------------------------------------- Net assets .......................................... $ 516,491 ======================================================================= Accumulation Units .................................. 516,491 Retained by Equitable Life in Separate Account No. 66 ............................................. -- ----------------------------------------------------------------------- Total net assets .................................... 516,491 ======================================================================= Investment in shares of the Trust - at cost ......... 346,879 Trust shares held Class A ............................................ -- Class B ............................................ 40,131 Units outstanding (000's): MRP ................................................ -- RIA ................................................ 2 Unit value: MRP ................................................ -- RIA ................................................ $ 298.30
The accompanying notes are an integral part of these financial statements. 39 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Operations For the Year Ended December 31, 2005 --------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------- EQ/Alliance EQ/Alliance Intermediate AXA Premier VIP AXA Premier VIP Growth Government High Yield Technology and Income Securities ---------------------------------------------------------------------------------------------------------------------- Income and Expense: Investment Income: Dividends from The Trusts ......................... $ 86,358 $ -- $ 61,150 $ 95,870 ---------------------------------------------------------------------------------------------------------------------- Expenses: Asset-based charges ............................... 544 18,565 2,881 25,072 ---------------------------------------------------------------------------------------------------------------------- Net Investment Income (Loss) ......................... 85,814 (18,565) 58,269 70,798 ---------------------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) on Investments: Realized gain (loss) on investments ............... (122,798) 59,781 118,054 (64,665) Realized gain distribution from The Trust ......... -- -- 145,305 -- ---------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) ............................ (122,798) 59,781 263,359 (64,665) ---------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation/(depreciation) of investments .................................... 70,292 152,349 (24,152) 142,783 ---------------------------------------------------------------------------------------------------------------------- Net Realized and Unrealized Gain (Loss) on Investments ......................................... (52,506) 212,130 239,207 78,118 ---------------------------------------------------------------------------------------------------------------------- Net increase (Decrease) In Net Assets From Operations .......................................... $ 33,308 $ 193,565 $ 297,476 $ 148,916 ======================================================================================================================
The accompanying notes are an integral part of these financial statements. 40 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Operations (Continued) For the Year Ended December 31, 2005 --------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------- EQ/Alliance EQ/Alliance EQ/Alliance EQ/Alliance Small Cap International Large Cap Growth Quality Bond Growth ---------------------------------------------------------------------------------------------------------------------- Income and Expense: Investment Income: Dividends from The Trusts ......................... $ 327,856 $ -- $ 44,257 $ -- ---------------------------------------------------------------------------------------------------------------------- Expenses: Asset-based charges ............................... 171,644 -- 679 666 ---------------------------------------------------------------------------------------------------------------------- Net Investment Income (Loss) ......................... 156,212 -- 43,578 (666) ---------------------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) on Investments: Realized gain (loss) on investments ............... 1,406,093 (30,229) 10,089 237,961 Realized gain distribution from The Trust ......... -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) ............................ 1,406,093 (30,229) 10,089 237,961 ---------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation/(depreciation) of investments .................................... 990,072 124,789 (20,890) (110,402) ---------------------------------------------------------------------------------------------------------------------- Net Realized and Unrealized Gain (Loss) on Investments ......................................... 2,396,165 94,560 (10,801) 127,559 ---------------------------------------------------------------------------------------------------------------------- Net increase (Decrease) In Net Assets From Operations .......................................... $2,552,377 $ 94,560 $ 32,777 $126,893 ======================================================================================================================
The accompanying notes are an integral part of these financial statements. 41 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Operations (Continued) For the Year Ended December 31, 2005 --------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------- EQ/Bernstein EQ/Calvert EQ/Capital Diversified Socially EQ/Capital Guardian Value Responsible Guardian Growth International ---------------------------------------------------------------------------------------------------------------------- Income and Expense: Investment Income: Dividends from The Trusts ......................... $ 103,233 $ -- $ 85 $ 25,874 ---------------------------------------------------------------------------------------------------------------------- Expenses: Asset-based charges ............................... 88,443 12,491 -- 14,612 ---------------------------------------------------------------------------------------------------------------------- Net Investment Income (Loss) ......................... 14,790 (12,491) 85 11,262 ---------------------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) on Investments: Realized gain (loss) on investments ............... 2,131,306 13,888 696 72,797 Realized gain distribution from The Trust ......... 255,750 41,636 -- 2,228 ---------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) ............................ 2,387,056 55,524 696 75,025 ---------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation/(depreciation) of investments .................................... (1,948,663) 42,893 1,139 172,630 ---------------------------------------------------------------------------------------------------------------------- Net Realized and Unrealized Gain (Loss) on Investments ......................................... 438,393 98,417 1,835 247,655 ---------------------------------------------------------------------------------------------------------------------- Net increase (Decrease) In Net Assets From Operations .......................................... $ 453,183 $ 85,926 $1,920 $258,917 ======================================================================================================================
The accompanying notes are an integral part of these financial statements. 42 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Operations (Continued) For the Year Ended December 31, 2005 --------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------- EQ/Capital EQ/Capital Guardian Guardian EQ/Equity 500 EQ/Evergreen Research U.S. Equity Index Omega ---------------------------------------------------------------------------------------------------------------------- Income and Expense: Investment Income: Dividends from The Trusts ......................... $ 34,460 $ 9,078 $ 264,078 $ 19 ---------------------------------------------------------------------------------------------------------------------- Expenses: Asset-based charges ............................... 65,563 16,683 166,005 -- ---------------------------------------------------------------------------------------------------------------------- Net Investment Income (Loss) ......................... (31,103) (7,605) 98,073 19 ---------------------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) on Investments: Realized gain (loss) on investments ............... 323,083 129,483 (50,381) 7,516 Realized gain distribution from The Trust ......... -- 86,899 345,924 376 ---------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) ............................ 323,083 216,382 295,543 7,892 ---------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation/(depreciation) of investments .................................... (92) (126,240) 315,903 (7,906) ---------------------------------------------------------------------------------------------------------------------- Net Realized and Unrealized Gain (Loss) on Investments ......................................... 322,991 90,142 611,446 (15) ---------------------------------------------------------------------------------------------------------------------- Net increase (Decrease) In Net Assets From Operations .......................................... $ 291,888 $ 82,537 $ 709,519 $ 5 ======================================================================================================================
The accompanying notes are an integral part of these financial statements. 43 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Operations (Continued) For the Year Ended December 31, 2005 --------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------- EQ/FI EQ/Janus EQ/JPMorgan EQ/FI Small/Mid Large Cap Value Mid Cap Cap Value Growth Opportunities ---------------------------------------------------------------------------------------------------------------------- Income and Expense: Investment Income: Dividends from The Trusts ......................... $ 50,185 $ 471,669 $ 3 $ 5,556 ---------------------------------------------------------------------------------------------------------------------- Expenses: Asset-based charges ............................... -- 95,693 -- -- ---------------------------------------------------------------------------------------------------------------------- Net Investment Income (Loss) ......................... 50,185 375,976 3 5,556 ---------------------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) on Investments: Realized gain (loss) on investments ............... 101,584 189,100 17,367 (449) Realized gain distribution from The Trust ......... 41,800 658,892 -- -- ---------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) ............................ 143,384 847,992 17,367 (449) ---------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation/(depreciation) of investments .................................... (153,775) (252,126) (3,833) 8,306 ---------------------------------------------------------------------------------------------------------------------- Net Realized and Unrealized Gain (Loss) on Investments ......................................... (10,391) 595,866 13,534 7,857 ---------------------------------------------------------------------------------------------------------------------- Net increase (Decrease) In Net Assets From Operations .......................................... $ 39,794 $ 971,842 $ 13,537 $13,413 ======================================================================================================================
The accompanying notes are an integral part of these financial statements. 44 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Operations (Continued) For the Year Ended December 31, 2005 --------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------- EQ/Lazard EQ/Mercury EQ/Mercury Small Cap EQ/Marsico Basic Value International Value Focus Equity Value ---------------------------------------------------------------------------------------------------------------------- Income and Expense: Investment Income: Dividends from The Trusts ......................... $ 35,459 $ -- $ 8,978 $ 8,595 ---------------------------------------------------------------------------------------------------------------------- Expenses: Asset-based charges ............................... -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- Net Investment Income (Loss) ......................... 35,459 -- 8,978 8,595 ---------------------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) on Investments: Realized gain (loss) on investments ............... 85,887 54,782 197,393 39,933 Realized gain distribution from The Trust ......... 39,283 16,691 20,755 -- ---------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) ............................ 125,170 71,473 218,148 39,933 ---------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation/(depreciation) of investments .................................... (117,326) 1,198 (229,283) 7,161 ---------------------------------------------------------------------------------------------------------------------- Net Realized and Unrealized Gain (Loss) on Investments ......................................... 7,844 72,671 (11,134) 47,094 ---------------------------------------------------------------------------------------------------------------------- Net increase (Decrease) In Net Assets From Operations .......................................... $ 43,303 $72,671 $ (2,157) $55,689 ======================================================================================================================
The accompanying notes are an integral part of these financial statements. 45 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Operations (Continued) For the Year Ended December 31, 2005 --------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------- EQ/MFS Emerging EQ/MFS Growth Investors EQ/Money EQ/Small Companies Trust Market Company ---------------------------------------------------------------------------------------------------------------------- Income and Expense: Investment Income: Dividends from The Trusts ......................... $ -- $ 476 $ 42,228 $ 34,376 ---------------------------------------------------------------------------------------------------------------------- Expenses: Asset-based charges ............................... 22,193 -- 726 33,924 ---------------------------------------------------------------------------------------------------------------------- Net Investment Income (Loss) ......................... (22,193) 476 41,502 452 ---------------------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) on Investments: Realized gain (loss) on investments ............... 176,117 (2,217) (2,714) 260,402 Realized gain distribution from The Trust ......... -- -- -- 141,582 ---------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) ............................ 176,117 (2,217) (2,714) 401,984 ---------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation/(depreciation) of investments .................................... 59,588 9,001 1,205 (301,838) ---------------------------------------------------------------------------------------------------------------------- Net Realized and Unrealized Gain (Loss) on Investments ......................................... 235,705 6,784 (1,509) 100,145 ---------------------------------------------------------------------------------------------------------------------- Net increase (Decrease) In Net Assets From Operations .......................................... $213,512 $ 7,260 $ 39,993 $ 100,598 ======================================================================================================================
The accompanying notes are an integral part of these financial statements. 46 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Operations (Concluded) For the Year Ended December 31, 2005 --------------------------------------------------------------------------------
------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity ------------------------------------------------------------------------ Income and Expense: Investment Income: Dividends from The Trusts ......................... $ 2,339 ------------------------------------------------------------------------ Expenses: Asset-based charges ............................... -- ------------------------------------------------------------------------ Net Investment Income (Loss) ......................... 2,339 ------------------------------------------------------------------------ Realized and Unrealized Gain (Loss) on Investments: Realized gain (loss) on investments ............... 65,139 Realized gain distribution from The Trust ......... 16,416 ------------------------------------------------------------------------ Net realized gain (loss) ............................ 81,555 ------------------------------------------------------------------------ Change in unrealized appreciation/(depreciation) of investments .................................... 55,663 ------------------------------------------------------------------------ Net Realized and Unrealized Gain (Loss) on Investments ......................................... 137,218 ------------------------------------------------------------------------ Net increase (Decrease) In Net Assets From Operations .......................................... $139,557 ========================================================================
The accompanying notes are an integral part of these financial statements. 47 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Changes in Net Assets For the Years Ended December 31, --------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------ AXA Premier AXA Premier VIP VIP High Yield Technology (a) ------------------------------------------------------------------------------------------------------------ 2005 2004 2005 2004 ------------------------------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ 85,814 $ 68,471 $ (18,565) $ 9,209 Net realized gain (loss) on investments ........... (122,798) (154,397) 59,781 3,604 Change in unrealized appreciation (depreciation) of investments ................... 70,292 177,934 152,349 164,446 ------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations ........................................ 33,308 92,008 193,565 177,259 ------------------------------------------------------------------------------------------------------------ Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 54,147 99,905 630,168 310,839 Transfers between funds and guaranteed interest account, net .......................... 9,328 (147,745) (49,799) 1,465,219 Transfers for contract benefits and terminations ................................... (81,128) (132,455) (307,845) (267,346) Contract maintenance charges .................... (9,942) (10,352) (4,074) (2,733) ------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from contractowners transactions ....................... (27,595) (190,647) 268,450 1,505,979 ------------------------------------------------------------------------------------------------------------ Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (4,119) -- (1,345) (7,801) ------------------------------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets .................. 1,594 (98,639) 460,670 1,675,437 Net Assets--Beginning of Period .................... 1,097,627 1,196,266 1,675,437 -- ------------------------------------------------------------------------------------------------------------ Net Assets--End of Period .......................... $1,099,221 $1,097,627 $2,136,107 $1,675,437 ============================================================================================================ ------------------------------------------------------------------------------------ EQ/Alliance Growth and Income ------------------------------------------------------------------------------------ 2005 2004 ------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ 58,269 $ 97,634 Net realized gain (loss) on investments ........... 263,359 (56,747) Change in unrealized appreciation (depreciation) of investments ................... (24,152) 783,250 ------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations ........................................ 297,476 824,137 ------------------------------------------------------------------------------------ Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 524,989 656,823 Transfers between funds and guaranteed interest account, net .......................... 116,034 (19,199) Transfers for contract benefits and terminations ................................... (2,451,592) (2,471,008) Contract maintenance charges .................... (55,708) (60,235) ------------------------------------------------------------------------------------ Net increase (decrease) in net assets from contractowners transactions ....................... (1,866,277) (1,893,619) ------------------------------------------------------------------------------------ Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (16,612) -- ------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets .................. (1,585,413) (1,069,482) Net Assets--Beginning of Period .................... 6,247,604 7,317,086 ------------------------------------------------------------------------------------ Net Assets--End of Period .......................... $ 4,662,191 $ 6,247,604 ====================================================================================
The accompanying notes are an integral part of these financial statements. 48 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Changes in Net Assets (Continued) For the Years Ended December 31, --------------------------------------------------------------------------------
------------------------------------------------------------------------------------ EQ/Alliance Intermediate Government Securities ------------------------------------------------------------------------------------ 2005 2004 ------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ 70,798 340,741 Net realized gain (loss) on investments ........... (64,665) 14,458 Change in unrealized appreciation (depreciation) of investments ................... 142,783 (137,775) ------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations ........................................ 148,916 217,424 ------------------------------------------------------------------------------------ Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 1,253,878 1,899,305 Transfers between funds and guaranteed interest account, net .......................... (338,467) (1,300,024) Transfers for contract benefits and terminations ................................... (9,959,936) (2,068,036) Contract maintenance charges .................... (17,851) (35,038) ------------------------------------------------------------------------------------ Net increase (decrease) in net assets from contractowners transactions ....................... (9,062,376) (1,503,793) ------------------------------------------------------------------------------------ Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (3,139) -- ------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets .................. (8,916,599) (1,286,369) Net Assets--Beginning of Period .................... 11,633,675 12,920,044 ------------------------------------------------------------------------------------ Net Assets--End of Period .......................... $2,717,076 $11,633,675 ==================================================================================== --------------------------------------------------------------------------------------------------------------- EQ/Alliance EQ/Alliance International Large Cap Growth --------------------------------------------------------------------------------------------------------------- 2005 2004 2005 2004 --------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ 156,212 $ 223,157 $ -- $ -- Net realized gain (loss) on investments ........... 1,406,093 946,235 (30,229) (256,970) Change in unrealized appreciation (depreciation) of investments ................... 990,072 1,575,570 124,789 323,042 --------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations ........................................ 2,552,377 2,744,962 94,560 66,072 --------------------------------------------------------------------------------------------------------------- Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 3,480,506 2,799,153 23,512 83,376 Transfers between funds and guaranteed interest account, net .......................... (123,175) (170,025) (2,314) (70,490) Transfers for contract benefits and terminations ................................... (4,159,876) (3,640,863) (587,333) (223,512) Contract maintenance charges .................... (33,653) (37,483) (7,753) (10,542) --------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from contractowners transactions ....................... (836,198) (1,049,218) (573,888) (221,168) --------------------------------------------------------------------------------------------------------------- Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (6,607) -- (2,214) -- --------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets .................. 1,709,572 1,695,744 (481,542) (155,096) Net Assets--Beginning of Period .................... 18,067,920 16,372,176 898,983 1,054,079 --------------------------------------------------------------------------------------------------------------- Net Assets--End of Period .......................... $19,777,492 $18,067,920 $ 417,441 $ 898,983 ===============================================================================================================
The accompanying notes are an integral part of these financial statements. 49 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Changes in Net Assets (Continued) For the Years Ended December 31, --------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------- EQ/Alliance EQ/Alliance Small Cap Quality Bond Growth --------------------------------------------------------------------------------------------------------------- 2005 2004 2005 2004 --------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ 43,578 $ 67,791 $ (666) $ (789) Net realized gain (loss) on investments ........... 10,089 69,758 237,961 6,383 Change in unrealized appreciation (depreciation) of investments ................... (20,890) (63,614) (110,402) 214,560 --------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations ........................................ 32,777 73,935 126,893 220,154 --------------------------------------------------------------------------------------------------------------- Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 139,843 196,582 157,892 124,468 Transfers between funds and guaranteed interest account, net .......................... (129,654) (367,688) (80,030) 81,627 Transfers for contract benefits and terminations ................................... (651,427) (669,588) (606,411) (842,392) Contract maintenance charges .................... (11,385) (16,007) (12,097) (14,689) --------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from contractowners transactions ....................... (652,623) (856,701) (540,646) (650,986) --------------------------------------------------------------------------------------------------------------- Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (2,843) -- (3,480) -- --------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets .................. (622,689) (782,766) (417,233) (430,832) Net Assets--Beginning of Period .................... 1,685,936 2,468,702 1,480,292 1,911,124 --------------------------------------------------------------------------------------------------------------- Net Assets--End of Period .......................... $1,063,247 $1,685,936 $1,063,059 $1,480,292 =============================================================================================================== ------------------------------------------------------------------------------------- EQ/Bernstein Diversified Value ------------------------------------------------------------------------------------- 2005 2004 ------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ 14,790 $ 180,303 Net realized gain (loss) on investments ........... 2,387,056 256,634 Change in unrealized appreciation (depreciation) of investments ................... (1,948,663) 1,730,476 ------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations ........................................ 453,183 2,167,413 ------------------------------------------------------------------------------------- Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 1,827,146 2,832,800 Transfers between funds and guaranteed interest account, net .......................... (63,718) (234,767) Transfers for contract benefits and terminations ................................... (12,752,144) (1,132,707) Contract maintenance charges .................... (24,068) (36,004) ------------------------------------------------------------------------------------- Net increase (decrease) in net assets from contractowners transactions ....................... (11,012,784) 1,429,322 ------------------------------------------------------------------------------------- Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (3,588) -- ------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets .................. (10,563,189) 3,596,735 Net Assets--Beginning of Period .................... 19,487,350 15,890,615 ------------------------------------------------------------------------------------- Net Assets--End of Period .......................... $ 8,924,161 $19,487,350 =====================================================================================
The accompanying notes are an integral part of these financial statements. 50 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Changes in Net Assets (Continued) For the Years Ended December 31, --------------------------------------------------------------------------------
---------------------------------------------------------------------------------- EQ/Calvert Socially Responsible ---------------------------------------------------------------------------------- 2005 2004 ---------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ (12,491) $ (16,089) Net realized gain (loss) on investments ........... 55,524 (6,331) Change in unrealized appreciation (depreciation) of investments ................... 42,893 41,777 ---------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations ........................................ 85,926 19,357 ---------------------------------------------------------------------------------- Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 355,940 364,921 Transfers between funds and guaranteed interest account, net .......................... (91,166) (68,567) Transfers for contract benefits and terminations ................................... (127,052) (42,385) Contract maintenance charges .................... (34) (7) ---------------------------------------------------------------------------------- Net increase (decrease) in net assets from contractowners transactions ....................... 137,688 253,962 ---------------------------------------------------------------------------------- Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (1,335) -- ---------------------------------------------------------------------------------- Increase (Decrease) in Net Assets .................. 222,279 273,319 Net Assets--Beginning of Period .................... 1,010,267 736,948 ---------------------------------------------------------------------------------- Net Assets--End of Period .......................... $1,232,546 $1,010,267 ================================================================================== ---------------------------------------------------------------------------------------------------------- EQ/Capital EQ/Capital Guardian Guardian Growth International ---------------------------------------------------------------------------------------------------------- 2005 2004 2005 2004 ---------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ 85 $ 202 $ 11,262 $ 11,278 Net realized gain (loss) on investments ........... 696 475 75,025 37,958 Change in unrealized appreciation (depreciation) of investments ................... 1,139 1,632 172,630 63,090 ---------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations ........................................ 1,920 2,309 258,917 112,326 ---------------------------------------------------------------------------------------------------------- Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 1,143 712 983,006 529,257 Transfers between funds and guaranteed interest account, net .......................... -- (8,420) (31,441) 68,918 Transfers for contract benefits and terminations ................................... (110) (3,272) (287,805) (224,200) Contract maintenance charges .................... (438) (465) (1,685) (1,740) ---------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from contractowners transactions ....................... 595 (11,445) 662,075 372,235 ---------------------------------------------------------------------------------------------------------- Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (1,891) -- (1,695) -- ---------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets .................. 624 (9,136) 919,297 484,561 Net Assets--Beginning of Period .................... 39,204 48,340 1,119,675 635,114 ---------------------------------------------------------------------------------------------------------- Net Assets--End of Period .......................... $ 39,828 $ 39,204 $2,038,972 $1,119,675 ==========================================================================================================
The accompanying notes are an integral part of these financial statements. 51 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Changes in Net Assets (Continued) For the Years Ended December 31, --------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------- EQ/Capital EQ/Capital Guardian Guardian Research U.S. Equity -------------------------------------------------------------------------------------------------------------- 2005 2004 2005 2004 -------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ (31,103) $ (12,230) $ (7,605) $ (4,707) Net realized gain (loss) on investments ........... 323,083 232,924 216,382 83,415 Change in unrealized appreciation (depreciation) of investments ................... (92) 366,911 (126,240) 40,416 -------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations ........................................ 291,888 587,605 82,537 119,124 -------------------------------------------------------------------------------------------------------------- Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 1,056,040 1,125,499 504,017 754,025 Transfers between funds and guaranteed interest account, net .......................... (436,485) (157,591) (194,056) (55,154) Transfers for contract benefits and terminations ................................... (968,544) (875,330) (461,278) (252,583) Contract maintenance charges .................... (5,229) (7,560) (1,855) (3,575) -------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from contractowners transactions ....................... (354,218) 85,018 (153,172) 442,713 -------------------------------------------------------------------------------------------------------------- Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (1,953) -- (1,718) -- -------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets .................. (64,283) 672,623 (72,353) 561,837 Net Assets--Beginning of Period .................... 6,461,946 5,789,323 1,713,264 1,151,427 -------------------------------------------------------------------------------------------------------------- Net Assets--End of Period .......................... $6,397,663 $6,461,946 $1,640,911 $1,713,264 ============================================================================================================== EQ/Equity 500 Index ------------------------------------------------------------------------------------ 2005 2004 ------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ 98,073 $ 157,695 Net realized gain (loss) on investments ........... 295,543 (310,178) Change in unrealized appreciation (depreciation) of investments ................... 315,903 1,930,971 ------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations ........................................ 709,519 1,778,488 ------------------------------------------------------------------------------------ Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 4,064,829 4,689,849 Transfers between funds and guaranteed interest account, net .......................... (1,238,277) (878,858) Transfers for contract benefits and terminations ................................... (4,558,163) (2,922,466) Contract maintenance charges .................... (56,362) (60,472) ------------------------------------------------------------------------------------ Net increase (decrease) in net assets from contractowners transactions ....................... (1,787,973) 828,053 ------------------------------------------------------------------------------------ Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (15,138) -- ------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets .................. (1,093,592) 2,606,541 Net Assets--Beginning of Period .................... 20,403,749 17,797,208 ------------------------------------------------------------------------------------ Net Assets--End of Period .......................... $19,310,157 $20,403,749 ====================================================================================
The accompanying notes are an integral part of these financial statements. 52 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Changes in Net Assets (Continued) For the Years Ended December 31, --------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------- EQ/Evergreen EQ/FI Omega Mid Cap ------------------------------------------------------------------------------------------------------- 2005 2004 2005 2004 ------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ 19 $ 170 $ 50,185 $ 13,720 Net realized gain (loss) on investments ........... 7,892 12 143,384 66,671 Change in unrealized appreciation (depreciation) of investments ................... (7,906) 3,890 (153,775) 11,499 ------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations ........................................ 5 4,072 39,794 91,890 ------------------------------------------------------------------------------------------------------- Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 1,762 1,898 22,537 66,261 Transfers between funds and guaranteed interest account, net .......................... (9,918) -- 247,644 (76,273) Transfers for contract benefits and terminations ................................... (51,643) -- (463,512) (17,304) Contract maintenance charges .................... (489) (676) (6,407) (5,981) ------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from contractowners transactions ....................... (60,288) 1,222 (199,738) (33,297) ------------------------------------------------------------------------------------------------------- Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (1,318) -- (1,890) -- ------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets .................. (61,601) 5,294 (161,834) 58,593 Net Assets--Beginning of Period .................... 61,999 56,705 658,228 599,635 ------------------------------------------------------------------------------------------------------- Net Assets--End of Period .......................... $ 398 $61,999 $ 496,394 $ 658,228 ======================================================================================================= ------------------------------------------------------------------------------------ EQ/FI Small/Mid Cap Value ------------------------------------------------------------------------------------ 2005 2004 ------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ 375,976 $ 98,936 Net realized gain (loss) on investments ........... 847,992 618,450 Change in unrealized appreciation (depreciation) of investments ................... (252,126) 290,297 ------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations ........................................ 971,842 1,007,683 ------------------------------------------------------------------------------------ Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 3,494,069 2,098,343 Transfers between funds and guaranteed interest account, net .......................... 252,636 (209,377) Transfers for contract benefits and terminations ................................... (1,160,794) (1,178,404) Contract maintenance charges .................... (8,105) (8,804) ------------------------------------------------------------------------------------ Net increase (decrease) in net assets from contractowners transactions ....................... 2,577,806 701,758 ------------------------------------------------------------------------------------ Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (2,543) -- ------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets .................. 3,547,105 1,709,441 Net Assets--Beginning of Period .................... 7,374,162 5,664,721 ------------------------------------------------------------------------------------ Net Assets--End of Period .......................... $10,921,267 $ 7,374,162 ===================================================================================
The accompanying notes are an integral part of these financial statements. 53 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Changes in Net Assets (Continued) For the Years Ended December 31, --------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------- EQ/Janus EQ/JPMorgan EQ/Lazard Large Cap Value Small Cap Growth Opportunities Value --------------------------------------------------------------------------------------------------------------------------------- 2005 2004 2005 2004 2005 2004 --------------------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ 3 $ 425 $ 5,556 $ 4,468 $ 35,459 $ 43,202 Net realized gain (loss) on investments ........... 17,367 71 (449) 2,706 125,170 70,815 Change in unrealized appreciation (depreciation) of investments .................................. (3,833) 18,617 8,306 28,525 (117,326) 4,276 --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations ........................................ 13,537 19,113 13,413 35,699 43,303 118,293 --------------------------------------------------------------------------------------------------------------------------------- Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... (147) 26,828 70,747 69,060 54,411 195,426 Transfers between funds and guaranteed interest account, net .......................... -- -- (55) (9,436) 150,935 11,285 Transfers for contract benefits and terminations ................................... (86,396) (284) (79,014) (50,910) (333,946) (192,955) Contract maintenance charges .................... (1,686) (1,534) (3,739) (3,586) (8,668) (7,232) --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from contractowners transactions ....................... (88,229) 25,010 (12,061) 5,128 (137,268) 6,524 --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (1,070) -- (1,891) -- (2,909) -- --------------------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets .................. (75,762) 44,123 (539) 40,827 (96,874) 124,817 Net Assets--Beginning of Period .................... 181,807 137,684 360,382 319,555 845,708 720,891 --------------------------------------------------------------------------------------------------------------------------------- Net Assets--End of Period .......................... $ 106,045 $181,807 $ 359,843 $ 360,382 $ 748,834 $ 845,708 =================================================================================================================================
The accompanying notes are an integral part of these financial statements. 54 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Changes in Net Assets (Continued) For the Years Ended December 31, --------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------- EQ/Mercury EQ/Marsico Basic Value Focus Equity ---------------------------------------------------------------------------------------------------------- 2005 2004 2005 2004 ---------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ -- $ -- $ 8,978 $ 24,576 Net realized gain (loss) on investments ........... 71,473 12,612 218,148 51,211 Change in unrealized appreciation (depreciation) of investments ................... 1,198 24,396 (229,283) 42,934 ---------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations ........................................ 72,671 37,008 (2,157) 118,721 ---------------------------------------------------------------------------------------------------------- Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 18,262 16,323 86,624 101,242 Transfers between funds and guaranteed interest account, net .......................... 278,350 66,742 (173,486) (45,290) Transfers for contract benefits and terminations ................................... (86,229) (6,914) (698,829) (140,344) Contract maintenance charges .................... (6,014) (3,589) (8,996) (11,744) ---------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from contractowners transactions ....................... 204,369 72,562 (794,687) (96,136) ---------------------------------------------------------------------------------------------------------- Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (2,105) -- (2,635) -- ---------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets .................. 274,935 109,570 (799,479) 22,585 Net Assets--Beginning of Period .................... 400,915 291,345 1,260,224 1,237,639 ---------------------------------------------------------------------------------------------------------- Net Assets--End of Period .......................... $ 675,850 $400,915 $ 460,745 $1,260,224 ========================================================================================================== -------------------------------------------------------------------------------- EQ/Mercury International Value -------------------------------------------------------------------------------- 2005 2004 -------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ 8,595 $ 3,929 Net realized gain (loss) on investments ........... 39,933 8,906 Change in unrealized appreciation (depreciation) of investments ................... 7,161 40,242 -------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations ........................................ 55,689 53,077 -------------------------------------------------------------------------------- Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 166,234 39,434 Transfers between funds and guaranteed interest account, net .......................... 150,738 (71,278) Transfers for contract benefits and terminations ................................... (131,717) (92,569) Contract maintenance charges .................... (4,042) (2,276) -------------------------------------------------------------------------------- Net increase (decrease) in net assets from contractowners transactions ....................... 181,213 (126,689) -------------------------------------------------------------------------------- Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (1,954) -- -------------------------------------------------------------------------------- Increase (Decrease) in Net Assets .................. 234,948 (73,612) Net Assets--Beginning of Period .................... 283,133 356,745 -------------------------------------------------------------------------------- Net Assets--End of Period .......................... $ 518,081 $ 283,133 ================================================================================
The accompanying notes are an integral part of these financial statements. 55 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Changes in Net Assets (Continued) For the Years Ended December 31, --------------------------------------------------------------------------------
-------------------------------------------------------------------------------- EQ/MFS Emerging Growth Companies -------------------------------------------------------------------------------- 2005 2004 -------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ (22,193) $ (11,968) Net realized gain (loss) on investments ........... 176,117 (109,128) Change in unrealized appreciation (depreciation) of investments ................... 59,588 476,026 -------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations ........................................ 213,512 354,930 -------------------------------------------------------------------------------- Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 847,611 727,208 Transfers between funds and guaranteed interest account, net .......................... (141,222) (146,601) Transfers for contract benefits and terminations ................................... (1,300,744) (349,435) Contract maintenance charges .................... (10,227) (13,737) -------------------------------------------------------------------------------- Net increase (decrease) in net assets from contractowners transactions ....................... (604,582) 217,435 -------------------------------------------------------------------------------- Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (1,707) -- -------------------------------------------------------------------------------- Increase (Decrease) in Net Assets .................. (392,777) 572,365 Net Assets--Beginning of Period .................... 3,308,177 2,735,812 -------------------------------------------------------------------------------- Net Assets--End of Period .......................... $ 2,915,400 $3,308,177 ================================================================================ ----------------------------------------------------------------------------------------------------------- EQ/MFS Investors EQ/Money Trust Market ----------------------------------------------------------------------------------------------------------- 2005 2004 2005 2004 ----------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ 476 $ 302 $ 41,502 $ 16,713 Net realized gain (loss) on investments ........... (2,217) (82) (2,714) (8,676) Change in unrealized appreciation (depreciation) of investments ................... 9,001 5,469 1,205 12,132 ----------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations ........................................ 7,260 5,689 39,993 20,169 ----------------------------------------------------------------------------------------------------------- Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 1,191 2,059 94,914 206,539 Transfers between funds and guaranteed interest account, net .......................... 49,240 -- (39,366) (246,123) Transfers for contract benefits and terminations ................................... (13,645) -- (721,036) (1,022,855) Contract maintenance charges .................... (932) (591) (13,680) (18,587) ----------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from contractowners transactions ....................... 35,854 1,468 (679,168) (1,081,026) ----------------------------------------------------------------------------------------------------------- Net increase (decrease) in amount retained by Equitable Life in Separate Account No. 66 ......... (1,436) -- (2,069) -- ----------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets .................. 41,678 7,157 (641,244) (1,060,857) Net Assets--Beginning of Period .................... 55,541 48,384 1,610,246 2,671,103 ----------------------------------------------------------------------------------------------------------- Net Assets--End of Period .......................... $ 97,219 $55,541 $ 969,002 $ 1,610,246 ===========================================================================================================
The accompanying notes are an integral part of these financial statements. 56 Separate Account No. 66 of AXA Equitable Life Insurance Company Statements of Changes in Net Assets (Concluded) For the Years Ended December 31, --------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------- EQ/Small EQ/Van Kampen Company Emerging Markets Index Equity ----------------------------------------------------------------------------------------------------------- 2005 2004 2005 2004 ----------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations: Net investment income (loss) ...................... $ 452 $ 40,681 $ 2,339 $ 2,209 Net realized gain (loss) on investments ........... 401,984 79,455 81,555 58,913 Change in unrealized appreciation (depreciation) of investments ................... (301,838) 238,413 55,663 7,828 ----------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations ........................................ 100,598 358,549 139,557 68,950 ----------------------------------------------------------------------------------------------------------- Contractowners Transactions: Contributions and Transfers: Payments received from contractowners ........... 982,369 863,812 13,269 62,281 Transfers between funds and guaranteed interest account, net .......................... (509,150) 158,206 96,365 (1,595) Transfers for contract benefits and terminations ................................... (246,050) (260,038) (109,149) (109,126) Contract maintenance charges .................... -- -- (4,827) (3,623) ----------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from contractowners transactions ....................... 227,169 761,800 (4,342) (52,063) ----------------------------------------------------------------------------------------------------------- Net increase (decrease) in amountretained by Equitable Life in Separate Account No. 66 ......... -- (3,329) -- ----------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets .................. 327,767 1,120,349 131,886 16,887 Net Assets--Beginning of Period .................... 2,878,199 1,757,850 384,605 367,718 ----------------------------------------------------------------------------------------------------------- Net Assets--End of Period .......................... $3,205,966 $2,878,199 $ 516,491 $ 384,605 ===========================================================================================================
(a) A substitution of EQ/Technology Portfolio for AXA Premier VIP Technology occurred on May 14, 2004 (See Note 5). The accompanying notes are an integral part of these financial statements. 57 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements December 31, 2005 -------------------------------------------------------------------------------- 1. Organization Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled), and 66 (collectively, the Funds or Accounts) of AXA Equitable Life Insurance Company (formerly The Equitable Life Assurance Society of the United States) ("AXA Equitable"), a subsidiary of AXA Financial, Inc., were established in conformity with the New York State Insurance Law. Pursuant to such law, to the extent provided in the applicable contracts, the net assets in the Funds are not chargeable with liabilities arising out of any other business of AXA Equitable. These financial statements reflect the total net assets and results of operations for Separate Account Nos. 13, 10, 4, 3 and 66. Annuity contracts available through AXA Equitable are the Momentum Strategy, Retirement Investment Account ("RIA"), Members Retirement Program ("MRP"), American Dental Association Members Retirement Program ("ADA") and Equi-Pen-Plus ("EPP") (collectively, the Plans). Institutional reflects investments in Funds by group annuity contracts issued by AXA Equitable. Assets of the Plans and Institutional are invested in a number of investment Funds (available Funds vary by Plan). Separate Account No. 66 consists of 29 investment options. The Account invests in shares of mutual funds of EQ Advisors Trust ("EQAT") and AXA Premier VIP Trust ("VIP") (collectively "The Trusts"). The Trusts are open-end diversified management companies that sell shares of a portfolio ("Portfolio") of a mutual fund to separate accounts of insurance companies. Each Portfolio of the Trusts has separate investment objectives. These financial statements and notes are those of the Account. The contractowners invest in Separate Account Nos. 13, 10, 4, 3 and 66 under the following respective names: Momentum Strategy Separate Account No. 13 The Alliance Bond Fund Separate Account No. 10 The Alliance Balanced Fund Separate Account No. 4 The Alliance Growth Equity Fund Separate Account No. 3 The Alliance Mid Cap Growth Fund RIA Separate Account No. 13 The Alliance Bond Fund Separate Account No. 10 The Alliance Balanced Fund Separate Account No. 4 The Alliance Common Stock Fund Separate Account No. 3 The Alliance Mid Cap Growth Fund 58 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 1. Organization (Continued) Separate Account No. 66: AXA Premier VIP High Yield EQ/Equity 500 Index AXA Premier VIP Technology EQ/Evergreen Omega EQ/Alliance Growth and Income EQ/FI Mid Cap EQ/Alliance Intermediate EQ/FI Small/Mid Cap Value Government Securities EQ/Janus Large Cap Growth EQ/Alliance International EQ/JPMorgan Value EQ/Alliance Premier Growth Opportunities(1) EQ/Alliance Quality Bond EQ/Lazard Small Cap Value EQ/Alliance Small Cap Growth EQ/Marsico Focus EQ/Bernstein Diversified Value EQ/Mercury Basic Value Equity EQ/Calvert Socially Responsible EQ/Mercury International Value EQ/Capital Guardian Growth EQ/MFS Emerging Growth EQ/Capital Guardian International Companies EQ/Capital Guardian Research EQ/MFS Investors Trust EQ/Capital Guardian U.S. Equity EQ/Money Market EQ/Emerging Markets Equity MRP Separate Account No. 10 The Alliance Balanced Fund Separate Account No. 4 The Alliance Growth Equity Fund Separate Account No. 3 The Alliance Mid Cap Growth Fund Separate Account No. 66: AXA Premier VIP Technology EQ/Capital Guardian Research EQ/Alliance Intermediate EQ/Capital Guardian U.S. Equity Government Securities EQ/Equity 500 Index EQ/Alliance International EQ/FI Small/Mid Cap Value EQ/Bernstein Diversified Value EQ/MFS Emerging Growth EQ/Calvert Socially Responsible Companies EQ/Capital Guardian International EQ/Small Company Index ADA Separate Account No. 4 The Growth Equity Fund EPP Separate Account No. 10 The Alliance Balanced Fund Separate Account No. 4 The Alliance Common Stock Fund Institutional Separate Account No. 13 Intermediate Duration Bond Account Separate Account No. 10 Strategic Balanced Management Account Separate Account No. 4 Growth Stock Account Separate Account No. 3 Mid Cap Growth Stock Account
----------- (1) Formerly known as JP Morgan Value Opportunities. 59 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 1. Organization (Concluded) Under applicable insurance law, the assets and liabilities of the Accounts are clearly identified and distinguished from AXA Equitable's other assets and liabilities. All contracts are issued by AXA Equitable. The assets of the Account are the property of AXA Equitable. However, the portion of the Accounts' assets attributable to the contracts will not be chargeable with liabilities arising out of any other business AXA Equitable may conduct. The excess of assets over reserves and other contract liabilities, if any, in Separate Account Nos. 4 and 66 may be transferred to AXA Equitable's General Account. AXA Equitable's General Account is subject to creditor rights. The amount retained by AXA Equitable in Separate Account Nos. 4 and 66 arises principally from (1) contributions from AXA Equitable, (2) expense risk charges accumulated in the account, and (3) that portion, determined ratably, of the account's investment results applicable to those assets in the account in excess of the net assets for the contracts. Amounts retained by AXA Equitable are not subject to charges for expense risks. 2. Significant Accounting Policies The accompanying financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates. Investment securities for Separate Account Nos. 13, 10, 4 and 3 are valued as follows: Stocks listed on national securities exchanges and certain over-the-counter issues traded on the National Association of Securities Dealers, Inc. Automated Quotation (NASDAQ) national market system are valued at the last sale price, or, if there is no sale, at the latest available bid price. Foreign securities not traded directly, or in American Depository Receipt (ADR) form in the United States, are valued at the last sale price in the local currency on an exchange in the country of origin. Foreign currency is converted into its U.S. dollar equivalent at current exchange rates. Forward contracts are valued at their last sale price or, if there is no sale, at the latest available bid price. United States Treasury securities and other obligations issued or guaranteed by the United States Government, its agencies or instrumentalities are valued at representative quoted prices. Long-term (i.e., maturing in more than a year) publicly traded corporate bonds are valued at prices obtained from a bond pricing service of a major dealer in bonds when such prices are available; however, in circumstances where AXA Equitable and Alliance deem it appropriate to do so, an over-the-counter or exchange quotation may be used. Convertible preferred stocks listed on national securities exchanges are valued at their last sale price or, if there is no sale, at the latest available bid price. Convertible bonds and unlisted convertible preferred stocks are valued at bid prices obtained from one or more major dealers in such securities; where there is a discrepancy between dealers, values may be adjusted based on recent premium spreads to the underlying common stock. Other assets that do not have a readily available market price are valued at fair value as determined in good faith by AXA Equitable's investment officers. 60 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 2. Significant Accounting Policies (Concluded) Short-term debt securities purchased directly by the AXA Equitable Funds which mature in 60 days or less are valued at amortized cost. Short-term debt securities which mature in more than 60 days are valued at representative quoted prices. The value of the investments in Separate Account No. 66 held in the Trusts is calculated by multiplying the number of shares held in each Portfolio by the net asset value per share of that Portfolio determined as of the close of business each day. The net asset value is determined by the Trusts using the market or fair value of the underlying assets of the Portfolio less liabilities. For Separate Account No. 66, realized gains and losses include (1) gains and losses on redemptions of Trust shares (determined on the identified cost basis) and (2) Trust distributions representing the net realized gains on Trust investment transactions. Dividends and distributions of capital gains of the Trusts are automatically reinvested on the ex-dividend date. Security transactions are recorded on the trade date. Amortized cost of debt securities where applicable are adjusted for amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date; interest income (including amortization of premium and discount on securities using the effective yield method) is accrued daily. Realized gains and losses on the sale of investments are computed on the basis of the identified cost of the related investments sold. Transactions denominated in foreign currencies are recorded at the rate prevailing at the date of such transactions. Asset and liability accounts that are denominated in a foreign currency are adjusted to reflect the current exchange rate at the end of the period. Transaction gains or losses resulting from changes in the exchange rate during the reporting period or upon settlement of the foreign currency transactions are reflected under "Realized and Unrealized Gain (Loss) on Investments" in the Statement of Operations. Separate Account No. 10 may enter into forward currency contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign security holdings. Forward contracts are agreements to buy or sell a foreign currency for a set price in the future. During the period the forward contracts are open, changes in the value of the contract are recognized as unrealized gains or losses by "marking-to-market" on a daily basis to reflect the market value of the contract at the end of each trading day. The realized gain or loss arising from the difference between the original contracts and the closing of such contracts is included in realized gains or losses from foreign currency transactions. The use of forward transactions involves the risk of imperfect correlation in movements in the price of forward contracts, interest rates and the underlying hedged assets. Forward contracts involve elements of both market and credit risk in excess of the amounts reflected in the Statement of Assets and Liabilities. The contract amounts of these forward contracts reflect the extent of the Fund's exposure to off-balance sheet risk. The Fund bears the market risk that arises from any changes in security values. Forward contracts are entered into directly with the counterparty and not through an exchange and can be terminated only by agreement of both parties to the contract. There is no daily margin settlement and the fund is exposed to the risk of default by the counterparty. At December 31, 2005, Separate Account No. 10 had no outstanding forward currency contracts to buy/sell foreign currencies. Net assets allocated to contracts in the payout period are computed according to various mortality tables, depending on the year the benefits were purchased. The tables used are the 1971 GAM table, the 1983 GAM 61 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 2. Significant Accounting Policies (Concluded) table, and the 1994 GAR. The assumed investment returns vary by contract and range from 4 percent to 6.5 percent. The contracts are participating group annuities, and, thus, the mortality risk is borne by the contractholder, as long as the contract has not been discontinued. AXA Equitable retains the ultimate obligation to pay the benefits if the contract funds become insufficient and the contractholder elects to discontinue the contract. Amounts due to/from the General Account or receivable/payable for policy related transactions represent receivables/payables for policy related transactions predominately related to premiums, surrenders and death benefits. Payments received from contractowners represent participant contributions under the contracts (excluding amounts allocated to the guaranteed interest option, reflected in the General Account). The amount allocated to the guaranteed interest option earns interest at the current guaranteed interest rate which is an annual effective rate. The operations of the Account are included in the federal income tax return of AXA Equitable, which is taxed as a life insurance company under the provisions of the Internal Revenue Code. No federal income tax based on net income or realized and unrealized capital gains is currently applicable to contracts participating in the Funds by reason of applicable provisions of the Internal Revenue Code and no federal income tax payable by AXA Equitable is expected to affect the unit value of the contracts participating in the Account. Accordingly, no provision for federal income taxes is required. However, AXA Equitable retains the right to charge for any federal income tax incurred which is applicable to the Account if the law is changed. 3. Purchases and Sales on Investments The cost of purchases and proceeds from sales of investments for the year ended December 31, 2005 were as follows for Separate Account No. 66: 62 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 3. Purchases and Sales on Investments (Concluded) Purchases Sales ------------ ------------- AXA Premier VIP High Yield ....................... $ 331,901 $ 277,671 AXA Premier VIP Technology ....................... 776,116 547,957 EQ/Alliance Growth & Income ...................... 1,168,503 2,847,216 EQ/Alliance Intermediate Government Sec. ......... 1,424,903 10,396,087 EQ/Alliance International ........................ 3,307,151 3,968,645 EQ/Alliance Large Cap Growth ..................... 22,848 598,950 EQ/Alliance Quality Bond ......................... 192,704 804,458 EQ/Alliance Small Cap Growth ..................... 160,576 705,226 EQ/Bernstein Diversified Value ................... 2,156,896 12,902,550 EQ/Calvert Socially Responsible .................. 362,163 196,948 EQ/Capital Guardian Growth ....................... 2,453 3,664 EQ/Capital Guardian International ................ 925,411 251,444 EQ/Capital Guardian Research ..................... 958,388 1,370,422 EQ/Capital Guardian U.S. Equity .................. 581,015 656,586 EQ/Equity 500 Index .............................. 3,927,051 5,288,493 EQ/Evergreen Omega ............................... 5,399 66,610 EQ/FI Mid Cap .................................... 502,524 612,167 EQ/FI Mid Cap Value .............................. 4,811,792 1,201,063 EQ/Janus Large Cap Growth ........................ 3 89,298 EQ/JPMorgan Value Opportunities .................. 72,172 80,568 EQ/Lazard Small Cap Value ........................ 344,223 409,658 EQ/Marsico Focus ................................. 451,528 232,572 EQ/Mercury Basic Value Equity .................... 248,408 1,015,997 EQ/Mercury International Value ................... 325,561 137,706 EQ/MFS Emerging Growth Companies ................. 742,844 1,372,480 EQ/MFS Investors Trust ........................... 50,907 16,015 EQ/Money Market .................................. 172,337 811,936 EQ/Small Company Index ........................... 1,171,936 802,682 EQ/Van Kampen Emerging Market Equity ............. 136,471 125,384 Investment Security Transactions For the year ended December 31, 2005, investment security transactions, excluding short-term debt securities, were as follows for Separate Account Nos. 13, 10, 4 and 3:
Purchases Sales ----------------------------- ---------------------------- Stocks U.S. Stocks U.S. and Debt Government and Debt Government Fund Securities and Agencies Securities and Agencies -------------------------------------------------------------------------------------------- Separate Account No. 13 ......... $35,566,412 $28,603,067 $22,870,177 $38,616,354 Separate Account No. 10 ......... 126,038,886 18,031,705 145,070,029 17,051,654 Separate Account No. 4 .......... 341,952,067 -- 423,893,544 -- Separate Account No. 3 .......... 111,906,149 -- 128,932,140 --
4. Related Party Transactions In Separate Account No. 66 the assets in each variable investment option are invested in shares of a corresponding mutual fund portfolio of the Trusts. Shares are offered by the Trusts at net asset value. Shares in 63 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 4. Related Party Transactions (Concluded) which the variable investment options are invested are in either one of two classes. Both classes are subject to fees for investment management and advisory services and other Trust expenses. One class of shares ("Class A shares") is not subject to distribution fees imposed pursuant to a distribution plan. The other class of shares ("Class B shares") is subject to distribution fees imposed under a distribution plan (herein, the "Rule 12b-1 Plans") adopted by the Trusts. The Rule 12b-1 Plans provide that the Trusts, on behalf of each Portfolio, may charge annually up to 0.25% of the average daily net assets of a Portfolio attributable to its Class B shares in respect of activities primarily intended to result in the sale of the Class B shares. These fees are reflected in the net asset value of the shares. AXA Equitable serves as investment manager of the Trusts and as such receives management fees for services performed in its capacity as investment manager of the Trusts. AXA Equitable oversees the activities of the investment advisors with respect to the Trusts and is responsible for retaining or discontinuing the services of those advisors. Fees generally vary depending on net asset levels of individual portfolios and range for EQAT and VIP from a low of 0.25% to a high of 1.20% of average daily net assets. AXA Equitable as investment manager pays expenses for providing investment advisory services to the Portfolios, including the fees of the Advisors of each Portfolio. In addition, AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC, affiliates of AXA Equitable, may also receive distribution fees under Rule 12b-1 Plans as described above. AllianceBernstein L.P. (formerly Alliance Capital Management L.P. ("AllianceBernstein")) serves as an investment advisor for the EQ/Alliance Portfolios; EQ/Equity 500 Index, and EQ/Bernstein Diversified Value and Separate Accounts 13, 10, 4 and 3; as well as a portion of AXA Premier VIP High Yield and EQ/Money Market. Alliance is a publicly traded limited partnership which is indirectly majority-owned by AXA Equitable and AXA Financial, Inc. (parent to AXA Equitable). AXA Advisors is an affiliate of AXA Equitable, and a distributor and principal underwriter of the contracts and the Account. AXA Advisors is registered with the Securities and Exchange Commission ("SEC") as a broker-dealer and is a member of the National Association of Securities Dealers, Inc. The contracts are sold by financial professionals who are registered representatives of AXA Advisors and licensed insurance agents of AXA Network, LLC ("AXA Network") or its subsidiaries (affiliates of AXA Equitable). AXA Advisors receives commissions and other service-related payments under its distribution agreement with AXA Equitable and its networking agreement with AXA Network. AXA Equitable, AllianceBernstein, and AXA Advisors seek to obtain the best price and execution of all orders placed for the portfolios of the Equitable Funds considering all circumstances. In addition to using brokers and dealers to execute portfolio security transactions for accounts under their management, AXA Equitable, Alliance, and AXA Advisors may also enter into other types of business and securities transactions with brokers and dealers, which will be unrelated to allocation of the AXA Equitable Funds' portfolio transactions. At December 31, 2005, interests of retirement and investment plans for employees, managers and agents of AXA Equitable in Separate Account Nos. 4 and 3 aggregated $204,059,876 (27.7%) and $70,777,318 (63.5%), respectively, of the net assets in these Funds. 5. Substitutions/Reorganizations On May 14, 2004 The AXA Premier VIP Technology acquired all the net assets of EQ/Technology pursuant to a substitution transaction. For accounting purposes this transaction was treated as a merger. The substitution was 64 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 5. Substitutions/Reorganizations (Concluded) accomplished by a tax free exchange of 388,230 of Class B shares of EQ/Technology (valued at $1,580,874) for 190,938 of Class B shares of AXA Premier VIP Technology (valued at $1,580,874). The AXA Premier VIP was not held by the Account before the merger, therefore the aggregate net assets of EQ/Technology and AXA Premier VIP Technology Portfolios before and after the substitution were $1,580,874. 6. Asset Charges Charges and fees relating to the Funds are paid to AXA Equitable and are deducted in accordance with the terms of the various contracts which participate in the Funds. Depending upon the terms of a contract, sales-related fees and operating expenses are paid (i) by a reduction of an appropriate number of Fund Units or (ii) by a direct payment. Momentum Strategy Fees with respect to the Momentum Strategy contracts are as follows: Daily Separate Account Charge: On a daily basis a charge at an annual rate of 1.25% for Separate Account 4, 10 and 13, 1.40% for Separate Account 3 (maximum charge is 1.40%); is deducted from the net assets attributable to the Momentum Strategy units. This fee is to cover expense risk, mortality risk, other charges and operating expenses of the contract. Administrative Fees: Participant Administrative Charge -- At the end of each calendar quarter, a maximum record maintenance and report fee of $3.75 ($15.00 per year) is either deducted from the Participant Retirement Account Value or billed to the employer. No charge is assessed if average account value is at least $20,000. Additionally, the Participant Retirement Account Value is assessed for the fee if the charge is not paid by the employer or the plan has less than 10 participants in the contract. Plan Recordkeeping Service Charge with Checkwriting -- Employers electing plan recordkeeping with checkwriting services are subject to a charge of $25 per check. These amounts are withdrawn from the Participant Retirement Account Value before withdrawal. Loan Charge -- A loan set up charge of $25 is made at the time the loan is set up. This is a one time charge per active loan. Quarterly loan recordkeeping charge is $6 per outstanding loan. Charge is deducted from the Participant Retirement Account Value. Contingent Withdrawal Charge -- Certain withdrawals are subject to defined contingent withdrawal charges. The maximum charge is 6% of the total plan assets withdrawn. Charge is deducted from the Participant Retirement Account Value in addition to the amount withdrawn. State Premium and other applicable taxes -- charge for state premium and other applicable taxes deducted is designed to approximate certain taxes that may be imposed. When applicable, this amount is deducted from contributions. Generally, the charge is deducted from the amount applied to provide an annuity payout option. Operating and Expense Charges: In addition to the charges and fees mentioned above, the Funds are charged for certain costs and expenses directly related to their operations. These may include transfer taxes, SEC filing fees and certain related 65 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 6. Asset Charges (Continued) expenses including printing of SEC filings, prospectuses and reports. These charges and fees are reflected as reductions of unit value. RIA Charges and fees relating to the Funds are paid to AXA Equitable and are deducted in accordance with the terms of the various contracts which participate in the Funds. Depending upon the terms of a contract, sales-related fees and operating expenses are paid (i) by a reduction of an appropriate number of Fund Units or (ii) by a direct payment. Fees with respect to the Retirement Investment Account (RIA) contracts are as follows: Investment Management Fee: An annual fee of 0.50% of the net assets attributable to RIA units is assessed for the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance Mid Cap Growth Funds. These fees are reflected as a reduction of the RIA Unit Value. Administrative Fees: Contracts investing in the Funds are subject to certain administrative expenses according to contract terms. Depending upon the terms of a contract, fees are paid (i) by a reduction of an appropriate number of Fund units or (ii) by a direct payment. These fees may include: Ongoing Operations Fee -- An expense charge is made based on the combined net balances of each fund. Depending upon when the employer adopted RIA, the monthly rate ranges from 1/12 of 1.25% to 1/12 of 0.50% or from 1/12 of 1.25% to 1/12 of 0.25%. Participant Recordkeeping Services Charge -- Employers electing RIA's optional Participant Recordkeeping Services are subject to an annual charge of $25 per employee-participant under the employer plan. Contingent Withdrawal Charge -- Certain withdrawals are subject to defined contingent withdrawal charges. The maximum charge is 6% of the total plan assets withdrawn. Loan Fee -- A loan fee equal to 1% of the amount withdrawn as loan principal is deducted on the date the plan loan is made. Operating and Expense Charges: In addition to the charges and fees mentioned above, the Funds are charged for certain costs and expenses directly related to their operations. These may include transfer taxes, SEC filing fees and certain related expenses including printing of SEC filings, prospectuses and reports. These charges and fees are reflected as reductions of unit value. 66 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 6. Asset Charges (Continued) MRP Charges and fees relating to the Funds paid to AXA Equitable are deducted in accordance with the terms of the various contracts which participate in the Funds. With respect to the Members Retirement Program these expenses consist of investment management and accounting fees, program expense charge, direct expenses and record maintenance and report fees. These charges and fees are paid to AXA Equitable and are recorded as expenses in the accompanying Statement of Operations. Fees with respect to the Members Retirement Program contracts are as follows: The below discusses expenses related to Separate Accounts Nos. 3, 4 and 10: o Program Expense Charge--An expense charge is made at an effective annual rate of 1.00% of the combined value of all investment options maintained under the contract with AXA Equitable and is deducted monthly. o Investment Management Fees--An expense charge is made daily at an effective annual rate of 0.50% of the net assets of the Alliance Growth Equity and Alliance Balanced Funds and an effective annual rate of 0.65% for the Alliance Mid Cap Growth Fund. o Direct Operating and Other Expenses--In addition to the charges and fees mentioned above, the Funds are charged for certain costs and expenses directly related to their operations. These may include transfer taxes, SEC filing fees and certain related expenses including printing of SEC filings, prospectuses and reports. These charges and fees are reflected as a reduction of the unit value. o A record maintenance and report fee of $3.75 is deducted quarterly as a liquidation of fund units. ADA Charges and fees relating to the Funds are deducted in accordance with the terms of the various contracts which participate in the Fund. Depending upon the terms of a contract, sales-related fees and operating expenses are paid (i) by a reduction of an appropriate number of Fund Units or (ii) by a direct payment. These charges and fees are paid to AXA Equitable and are recorded as expenses in the accompanying Statement of Operations. Fees with respect to the American Dental Association Members Retirement Program are as follows: Investment Management and Administration Fees (Investment Management Fees): AXA Equitable receives a fee based on the value of the Growth Equity Fund at a monthly rate of 1/12 of (i) 0.29 of 1% of the first $100 million and (ii) 0.20 of 1% of the excess over $100 million of its ADA Program assets. An Administrative fee is charged at a daily rate of 0.15% of average daily net assets. Operating and Expense Charges: Program Expense Charge -- In the years prior to May 1, 2005 the expense charge was made on the combined value of all investment options maintained under the contract with AXA Equitable at a monthly rate 1/12 of (i) 0.645 of 1% of the first $400 million. Effective May 1, 2005 an expense charge is made on the combined value of all investment options maintained under the contract with AXA Equitable at a monthly rate of 1/12 of 0.635%. A portion of the Program Expense Charge assessed by AXA Equitable is made on behalf of the ADA and is equal to a monthly rate of 1/12 for (i) 0.025 of 1% of the first $400 million and (ii) 0.020 of 1% of the excess over $400 67 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 6. Asset Charges (Continued) million. For 2003 and 2002, respectively, the portion of the Program Expense Charge paid to the ADA has been reduced to 0.00% for all asset levels but the ADA's portion could be increased in the future. Other Expenses -- In addition to the charges and fees mentioned above, the Fund is charged for certain costs and expenses directly related to its operations. These may include transfer taxes, SEC filing fees and certain related expenses including printing of SEC filings, prospectuses and reports. A record maintenance and report fee of $3 is deducted quarterly from each participant's aggregate account balance. For clients with Investment Only plans, a record maintenance fee of $1 is deducted quarterly. EPP Charges and fees relating to the Funds are paid to AXA Equitable and are deducted in accordance with the terms of the various contracts, which participate in the Funds. Depending upon the terms of a contract, sales-related fees and operating expenses are paid (i) by a reduction of an appropriate number of Fund Units or (ii) by a direct payment. Fees with respect to the Equi-Pen-Plus Master Plan and Retirement Trust are as follows: Investment Management Fee: An annual fee of 0.25% of the total plan and trust net assets held in each Separate Account is deducted daily. This fee is reflected as reduction in EPP unit value. Administrative Fees: Ongoing Operations Fee -- An expense charge is made based on each client's combined balance of Master Plan and Trust net assets in the Separate and Fixed Income Accounts at a monthly rate of 1/12 of (i) 1% of the first $500,000, (ii) 0.75% of the next $500,000 and (iii) 0.50% of the excess over $1,000,000. Participant Recordkeeping Services Charge -- Employers electing Equi-Pen-Plus's optional Participant Recordkeeping Services are subject to an annual charge of $25 per employee-participant under the employer plan. Withdrawal Charge -- A charge is applied if the client terminates plan participation in the Master Retirement Trust and if the client transfers assets to another funding agency before the fifth anniversary of the date AXA Equitable accepts the participation agreement. The redemption charge is generally paid via a liquidation of units held in the fund and will be based on the following schedule: For Terminating Occurring In: Redemption Charge: ------------------------------- ------------------------------ Years 1 and 2 ........... 3% of all Master Trust assets Years 3 and 4 ........... 2% of all Master Trust assets Year 5 .................. 1% of all Master Trust assets After Year 5 ............ No Redemption Charge Operating and Expense Charges: In addition to the charges and fees mentioned above, the Funds are charged for certain costs and expenses directly related to their operations. These may include custody, audit and printing of reports. These charges and fees are reflected as reduction of unit value. 68 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 6. Asset Charges (Continued) Institutional Asset Management Fees Asset management fees are charged to clients investing in the Separate Accounts. The fees are based on the prior month-end net asset value (as defined) of each client's aggregate interest in AXA Equitable's Separate Accounts, and are determined monthly. Clients can either pay the fee directly by remittance to the Separate Account or via liquidation of units held in the Separate Accounts. The fees are calculated for each client in accordance with the schedule set forth below: Each Client's Aggregate Interest Annual Rate --------------------------------------- ------------- Minimum Fee .......................... $5,000 First $2 million...................... 0.85 of 1% Next $3 million....................... 0.60 of 1% Next $5 million....................... 0.40 of 1% Next $15 million...................... 0.30 of 1% Next $75 million...................... 0.25 of 1% Excess over $100 million.............. 0.20 of 1% There is an additional charge made to clients utilizing AXA Equitable's Active Investment Management Service (AIMS). The service is optional and delegates to AXA Equitable the responsibility for actively managing the client's assets among AXA Equitable's Separate Accounts. In the event that the client chooses this service, the additional fee is based on the combined net asset value of the client's assets in the Separate Accounts. Clients electing this service either pay the fee directly by remittance to the Separate Account or via liquidation of units held in the Separate Account. The charge is assessed on a monthly basis at the annual rates shown below: Client's Aggregate Interest Annual Rate ------------------------------- ------------ Minimum Fee .................... $2,500 First $5 million................ 0.100% Next $5 million................. 0.075% Next $5 million................. 0.050% Over $15 million................ 0.025% Asset management fees, asset allocation fees and AIMS fees are paid to AXA Equitable. Administrative Fees Certain client contracts provide for a fee for administrative services to be paid directly to AXA Equitable. This administrative fee is calculated according to the terms of the specific contract and is generally paid via a liquidation of units held in the funds in which the contract invests. Certain of these client contracts provide for administrative fees to be paid through a liquidation of units from a Short-term liquidity account. The payment of the fee for administrative services has no effect on other separate account clients or the unit values of the separate accounts. Operating and Expense Charges In addition to the charges and fees mentioned above, the Separate Accounts are charged for certain costs and expenses directly related to their operations. These charges may include custody and audit fees, and result in reduction of Separate Account unit values. 69 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 6. Asset Charges (Concluded) Administrative fees paid through a liquidation of units in Separate Account No. 66 are shown in the Statements of Changes in Net Assets as Contract maintenance charges. The aggregate of all other fees are included in Asset-based charges in the Statements of Operations. Asset-based charges are comprised of accounting and administration fees. 7. Changes in Units Outstanding Accumulation units issued and redeemed during the year ended December 31, were (in thousands): Separate Account Nos. 13, 10, 4 and 3: --------------------------------------
----------------------------------------------------------------------------- Alliance Alliance Alliance Growth Alliance Mid Cap Bond Fund Balanced Fund Equity Fund Growth Fund ----------------------------------------------------------------------------- 2005 2004 2005 2004 2005 2004 2005 2004 ----------------------------------------------------------------------------- Momentum Strategy Issued .............................. 1 3 10 9 . 1 1 4 5 Redeemed ............................ (--) (6) (8) (9). (1) (2) (2) (6) ----------------------------------------------------------------------------- Net Increase (Decrease) ............. 1 (3) 2 -- . -- (1) 2 (1) -----------------------------------------------------------------------------
Alliance Alliance Alliance Common Alliance Mid Cap Bond Fund Balanced Fund Stock Fund Growth Fund -------------------------------------------------------------------------- 2005 2004 2005 2004 2005 2004 2005 2004 -------------------------------------------------------------------------- RIA Issued ............................. -- -- 6 20 2 4 2 6 Redeemed ........................... -- -- (135) (72) (11) (12) (13) (22) -------------------------------------------------------------------------- Net (Decrease) ..................... -- -- (129) (52) (9) (8) (11) (16) --------------------------------------------------------------------------
There were no significant unit issuance and redemption activities related to RIA for Alliance Bond Fund during the year 2005.
--------------------------------------------------------------- Alliance Alliance Growth Alliance Mid Cap Balanced Fund Equity Fund Growth Fund --------------------------------------------------------------- 2005 2004 2005 2004 2005 2004 --------------------------------------------------------------- MRP Issued .......................... 130 161 191 260 213 237 Redeemed ........................ (143) (190) (197) (266) (256) (217) --------------------------------------------------------------- Net Increase (Decrease) ......... (13) (29) (6) (6) (43) 20 ---------------------------------------------------------------
Alliance Common Alliance Stock Fund Balanced Fund --------------------------------------- 2005 2004 2005 2004 --------------------------------------- EPP Issued ................. 2 2 6 7 Redeemed ............... (3) (6) (11) (33) --------------------------------------- Net (Decrease) ......... (1) (4) (5) (26) ---------------------------------------
70 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 7. Changes in Units Outstanding (Continued) Accumulation units issued and redeemed during the years ended December 31, were (in thousands): ---------------------- The Growth Equity Fund ---------------------- 2005 2004 ADA ---------------------- Issued .......................... 156 140 Redeemed ........................ (214) (149) ---------------------- Net Increase (Decrease) ......... (58) (9) ----------------------
-------------------------------------------------------------------------- Strategic Balanced Immediate Duration Management Mid Cap Growth Bond Account Account Growth Stock Account Stock Account -------------------------------------------------------------------------- 2005 2004 2005 2004 2005 2004 2005 2004 Institutional -------------------------------------------------------------------------- Issued .......................... 1 3 -- -- 5 5 1 1 Redeemed ........................ (1) (15) -- -- (11) (12) (1) (1) -------------------------------------------------------------------------- Net Increase (Decrease) ......... -- (12) -- -- (6) (7) -- -- --------------------------------------------------------------------------
71 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 7. Changes in Units Outstanding (Continued) Accumulation units issued and redeemed during the years ended December 31, were (in thousands): Separate Account No. 66 -----------------------
AXA Premier AXA Premier VIP VIP EQ/Alliance High Yield Technology(a) Growth and Income ---------------------------------------------------------- 2005 2004 2005 2004 2005 2004 ---------------------------------------------------------- RIA Net Issued ...................... 1 1 -- 4 2 6 Net Redeemed .................... (1) (2) -- -- (8) (11) ---------------------------------------------------------- Net Increase (Decrease) ......... -- (1) -- 3 (6) (5) ---------------------------------------------------------- MRP (g) Net Issued ...................... -- -- 74 146 -- -- Net Redeemed .................... -- -- (41) (31) -- -- ---------------------------------------------------------- Net Increase (Decrease) ......... -- -- 33 115 -- -- ----------------------------------------------------------
----------------------------------------------------------------------------- EQ/Alliance Intermediate Government EQ/Alliance EQ/Alliance EQ/Alliance Securities International Large Cap Growth Quality Bond ----------------------------------------------------------------------------- 2005 2004 2005 2004 2005 2004 2005 2004 ----------------------------------------------------------------------------- RIA Net Issued ...................... 1 6 3 7 -- 1 1 1 Net Redeemed .................... (53) (11) (14) (18) (8) (5) (4) (6) ----------------------------------------------------------------------------- Net Increase (Decrease) ......... (52) (5) (11) (11) (8) (4) (3) (5) ----------------------------------------------------------------------------- MRP Net Issued ...................... 78 96 194 164 -- -- -- -- Net Redeemed .................... (27) 151 (145) (137) -- -- -- -- ----------------------------------------------------------------------------- Net Increase (Decrease) ......... 51 (55) 49 27 -- -- -- -- -----------------------------------------------------------------------------
EQ/Calvert EQ/Capital EQ/Alliance EQ/Bernstein Socially Guardian Small Cap Growth Diversified Value Responsible Growth ----------------------------------------------------------------------------- 2005 2004 2005 2004 2005 2004 2005 2004 ----------------------------------------------------------------------------- RIA Net Issued ...................... 1 1 1 1 -- -- -- -- Net Redeemed .................... (4) (6) (95) (7) -- -- -- -- ----------------------------------------------------------------------------- Net Increase (Decrease) ......... (3) (5) (94) 3 -- -- -- -- ----------------------------------------------------------------------------- MRP Net Issued ...................... -- -- 139 164 48 49 -- -- Net Redeemed .................... -- -- (87) (67) (27) (13) -- -- ----------------------------------------------------------------------------- Net Increase (Decrease) ......... -- -- 52 (97) 21 36 -- -- -----------------------------------------------------------------------------
72 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 7. Changes in Units Outstanding (Continued) Accumulation units issued and redeemed during the years ended December 31, were (in thousands):
EQ/Capital EQ/Capital EQ/Capital Guardian Guardian Guardian EQ/Equity International Research U.S. Equity 500 Index ------------------------------------------------------------------------------ 2005 2004 2005 2004 2005 2004 2005 2004 ------------------------------------------------------------------------------ RIA Net Issued ...................... -- 2 1 2 -- -- 1 5 Net Redeemed .................... -- (2) (5) (1) -- (3) (10) (6) ------------------------------------------------------------------------------ Net Increase (Decrease) ......... -- -- (4) 1 -- (3) (9) (1) ------------------------------------------------------------------------------ MRP Net Issued ...................... 96 54 66 75 41 58 433 536 Net Redeemed .................... (27) (17) (60) (74) 32 (16) (323) (355) ------------------------------------------------------------------------------ Net Increase (Decrease) ......... 69 37 6 1 9 42 110 181 ------------------------------------------------------------------------------ EQ/FI EQ/Evergreen EQ/FI Small/Mid EQ/Janus Large Omega Mid Cap Cap Value Cap Growth ------------------------------------------------------------------------------ 2005 2004 2005 2004 2005 2004 2005 2004 ------------------------------------------------------------------------------ RIA Net Issued ..................... -- -- 2 3 1 2 -- 1 Net Redeemed .................... (1) -- (4) (3) (2) 4 (1) -- ------------------------------------------------------------------------------ Net Increase (Decrease) ......... (1) -- (2) -- -- (2) (1) -- ------------------------------------------------------------------------------ MRP Net Issued ...................... -- -- -- -- 293 184 -- -- Net Redeemed .................... -- -- -- -- (91) (102) -- -- ------------------------------------------------------------------------------ Net Increase (Decrease) ......... -- -- -- -- 202 82 -- -- ------------------------------------------------------------------------------ EQ/JPMorgan Value EQ/Lazard EQ/Marsico EQ/Mercury Opportunities Small Cap Value Focus Basic Value Equity ------------------------------------------------------------------------------ 2005 2004 2005 2004 2005 2004 2005 2004 ------------------------------------------------------------------------------ RIA Net Issued ...................... 1 1 2 1 2 1 1 1 Net Redeemed .................... (1) (1) (2) (2) (1) -- (6) (2) ------------------------------------------------------------------------------ Net Increase (Decrease) ......... -- -- -- (1) 1 1 (5) (1) ------------------------------------------------------------------------------ MRP Net Issued ...................... -- -- -- -- -- -- -- -- Net Redeemed .................... -- -- -- -- -- -- -- -- ------------------------------------------------------------------------------ Net Increase (Decrease) ......... -- -- -- -- -- -- -- -- ------------------------------------------------------------------------------
73 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 7. Changes in Units Outstanding (Concluded) Accumulation units issued and redeemed during the years ended December 31, were (in thousands):
EQ/Mercury International EQ/MFS Emerging EQ/MFS EQ/Money Value Growth Companies Investors Trust Market --------------------------------------------------------------------------- 2005 2004 2005 2004 2005 2004 2005 2004 --------------------------------------------------------------------------- RIA Net Issued ...................... 2 3 3 3 1 -- 1 4 Net Redeemed .................... -- (1) (10) (4) (1) -- (6) (11) --------------------------------------------------------------------------- Net Increase (Decrease) ......... 2 2 (8) (1) -- -- (5) (7) --------------------------------------------------------------------------- MRP Net Issued ...................... -- -- 140 136 -- -- -- -- Net Redeemed .................... -- -- (68) (69) -- -- -- -- --------------------------------------------------------------------------- Net Increase (Decrease) ......... -- -- 72 67 -- -- -- -- ---------------------------------------------------------------------------
-------------------------------------------------------------------- EQ/Van Kampen EQ/Small Emerging Market Company Index Equity -------------------------------------------------------------------- 2005 2004 2005 2004 -------------------------------------------------------------------- RIA Net Issued ...................... -- -- -- 1 Net Redeemed .................... -- -- -- (1) -------------------------------------------------------------------- Net Increase (Decrease) ......... -- -- -- -- -------------------------------------------------------------------- MRP Net Issued ...................... 89 97 -- -- Net Redeemed .................... (71) (35) -- -- -------------------------------------------------------------------- Net Increase (Decrease) ......... 18 62 -- -- -------------------------------------------------------------------- (a) A substitution of EQ/Technology Portfolio for Alliance Premier VIP Technology Portfolio occurred on May 14, 2004 (See Note 5). 74 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 8. Accumulation Unit Values AXA Equitable issues a number of registered group annuity contracts that allow employer plan assets to accumulate on a tax-deferred basis. The contracts are typically designed for employers wishing to fund defined benefit, defined contribution and/or 401(k) plans. Annuity contracts available through AXA Equitable are the Retirement Investment Account ("RIA"), Momentum Strategy, Momentum Select and Momentum Solutions ("Momentum series of contracts"), Members Retirement Program ("MRP"), American Dental Association Members Retirement Program ("ADA") and Equi-Pen-Plus ("EPP") (collectively, the Plans). Assets of the Plans are invested in a number of investment Funds (available Funds vary by Plan). Institutional units presented on the Statement of Assets and Liabilities reflect investments in the Funds by clients other than contractholders of group annuity contracts issued by AXA Equitable. Institutional unit values are determined at the end of each business day. Institutional unit values reflect the investment performance of the underlying Fund for the day and charges and expenses deducted by the Fund. Contract unit values (RIA, MRP, ADA, Momentum series of contracts and EPP) reflect the same investment results as the Institutional unit values presented on the Statement of Assets and Liabilities. In addition, contract unit values reflect certain investment management and accounting fees, which vary by contract. These fees are charged as a percentage of net assets and are disclosed below for the Plans contracts in percentage terms. Certain investment options are charged administrative expenses as a percentage of average net assets (.05% annualized for RIA, 1.00% annualized for MRP). These exclude the effect of the underlying fund portfolios and charges made directly to Contractowner accounts through redemption of units. Under RIA contracts certain investment options may not be charged for Asset-based charges. Amounts appearing as Asset-based charges in the Statements of Operations for these investment options are the result of other contracts investing in Separate Account No. 66. Shown below is accumulation unit value information for units outstanding of Separate Accounts 13, 10, 4, 3 and 66 for the periods indicated.
Years Ended December 31, ---------------------------------------------------------------- 2005 2004 2003 2002 2001 ---------------------------------------------------------------- Separate Account No. 13 Alliance Bond Fund Momentum Strategy, 1.25%* Unit Value, end of period ................ $ 135.11 $ 134.74 $ 132.03 $ 127.31 $ 120.81 Net Assets (000's) ....................... $ 82 $ 63 $ 445 $ 788 $ 487 Number of units outstanding, end of period (000's) ................................. 1 -- 3 6 4 Total Return** ........................... 0.27% 2.05% 3.70% 5.38% 7.65% Alliance Bond Fund RIA, 0.50%* Unit Value, end of period ................ $ 80.20 $ 79.38 $ 77.20 $ 73.91 $ 69.85 Net Assets (000's) ....................... $ 75 $ 67 $ 89 $ 193 $ 888 Number of units outstanding, end of period (000's) ................................. 1 1 1 3 13 Total Return** ........................... 1.03% 2.82% 4.45% 5.81% 8.89%
75 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 8. Accumulation Unit Values (Continued)
Years Ended December 31, -------------------------------------------------------------------------------- 2005 2004 2003 2002 2001 -------------------------------------------------------------------------------- Intermediate Duration Bond Account Institutional Unit Value, end of period ................ $ 8,499.67 $ 8,371.02 $ 8,099.71 $ 7,715.79 -- Net Assets (000's) ....................... $ 25,032 $ 24,811 $ 122,079 $ 159,285 -- Number of units outstanding, end of period (000's) ................................. 3 3 15 21 -- Total Return** ........................... 1.54% 3.35% 4.98% 6.34% -- Separate Account No. 10 (o)(p) Alliance Balanced Fund RIA, 0.50%* Unit Value, end of period ................ $ 191.64 $ 180.09 $ 165.70 $ 141.24 $ 153.76 Net Assets (000's) ....................... $ 11,497 $ 33,959 $ 39,883 $ 40,233 $ 34,842 Number of units outstanding, end of period (000's) ................................. 60 189 241 285 227 Total Return** ........................... 6.06% 8.68% 17.32% (8.14)% (4.43)% Alliance Balanced Fund Momentum Strategy, 1.25%* Unit Value, end of period ................ $ 132.72 $ 125.67 $ 116.51 $ 99.84 $ 110.05 Net Assets (000's) ....................... $ 3,093 $ 2,654 $ 2,412 $ 2,580 $ 1,891 Number of units outstanding, end of period (000's) ................................. 23 21 21 26 17 Total Return** ........................... 5.61% 7.86% 16.70% (9.28)% (4.90)% Alliance Balanced Fund MRP, 1.50%* Unit Value, end of period ................ $ 47.30 $ 44.93 $ 41.83 $ 36.08 $ 39.82 Net Assets (000's) ....................... $ 35,401 $ 34,205 $ 33,059 $ 27,287 $ 22,096 Number of units outstanding, end of period (000's) ................................. 748 761 790 756 555 Total Return** ........................... 5.27% 7.42% 15.94% (9.38)% (5.64)% Alliance Balanced Fund EPP, 0.25%* Unit Value, end of period ................ $ 197.29 $ 184.94 $ 169.74 $ 144.31 -- Net Assets (000's) ....................... $ 2,550 $ 3,356 $ 7,494 $ 6,468 -- Number of units outstanding, end of period (000's) ................................. 13 18 44 45 -- Total Return** ........................... 6.68% 8.95% 17.62% (7.91)% -- Strategic Balanced Management Account Institutional Unit Value, end of period ................ $ 20,312.61 $ 18,994.07 $ 17,388.93 $ 14,747.26 -- Net Assets (000's) ....................... $ 7,115 $ 6,458 $ 6,034 $ 4,517 -- Number of units outstanding, end of period (000's) ................................. -- -- -- -- -- Total Return** ........................... 6.94% 9.23% 17.91% ( 7.68)% --
76 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 8. Accumulation Unit Values (Continued)
Years Ended December 31, -------------------------------------------------------------------------- 2005 2004 2003 2002 2001 -------------------------------------------------------------------------- Separate Account No. 4 Alliance Growth Equity Fund ADA, 1.025%* Unit Value, end of period ............................ $ 386.86 $ 346.74 $ 302.18 $ 223.26 -- Net Assets (000's) ................................... $ 293,966 $ 283,643 $ 249,918 $ 182,907 -- Number of units outstanding, end of period (000's) ............................................. 759 818 827 817 -- Total Return** ....................................... 11.57% 14.75% 35.05% (27.87)% -- The Growth Equity Fund Momentum Strategy, 1.25%* Unit Value, end of period ............................ $ 101.21 $ 90.90 $ 79.38 $ 58.54 $ 82.63 Net Assets (000's) ................................... $ 527 $ 483 $ 435 $ 299 $ 1,202 Number of units outstanding, end of period (000's) ............................................. 5 5 6 5 15 Total Return** ....................................... 11.34% 14.51% 35.60% (29.16)% ( 18.11)% Alliance Common Stock Fund RIA, 0.50%* Unit Value, end of period ............................ $ 780.43 $ 695.74 $ 602.90 $ 443.82 $ 611.48 Net Assets (000's) ................................... $ 16,152 $ 20,742 $ 23,093 $ 22,530 $ 50,100 Number of units outstanding, end of period (000's) ............................................. 21 30 38 51 82 Total Return** ....................................... 12.17% 15.40% 35.84% (27.42)% (18.37)% Alliance Growth Equity Fund MRP, 1.50%* Unit Value, end of period ............................ $ 317.72 $ 286.30 $ 251.02 $ 186.97 $ 261.19 Net Assets (000's) ................................... $ 44,826 $ 42,051 $ 38,426 $ 28,750 $ 41,578 Number of units outstanding, end of period (000's) ............................................. 141 147 153 154 159 Total Return** ....................................... 10.97% 14.05% 34.26% (28.42)% (19.44)% Alliance Common Stock Fund EPP, 0.25%* Unit Value, end of period ............................ $ 803.45 $ 714.47 $ 617.58 $ 453.49 -- Net Assets (000's) ................................... $ 14,152 $ 13,886 $ 13,987 $ 11,356 -- Number of units outstanding, end of period (000's) ............................................. 18 19 23 25 -- Total Return** ....................................... 12.45% 15.69% 36.18% (27.24)% -- Growth Stock Account Institutional Unit Value, end of period ............................ $ 8,269.13 $ 7,335.03 $ 6,324.43 $ 4,632.41 -- Net Assets (000's) ................................... $ 367,019 $ 371,131 $ 363,345 $ 289,558 -- Number of units outstanding, end of period (000's) ............................................. 44 51 57 63 -- Total Return** ....................................... 12.73% 15.98% 36.53% (27.05)% --
77 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 8. Accumulation Unit Values (Continued)
Years Ended December 31, -------------------------------------------------------------------------------- 2005 2004 2003 2002 2001 -------------------------------------------------------------------------------- Separate Account No. 3 Alliance Mid Cap Growth Fund Momentum Strategy, 1.40%* Unit Value, end of period ................ $ 95.47 $ 89.89 $ 75.69 $ 45.97 $ 65.91 Net Assets (000's) ....................... $ 928 $ 745 $ 691 $ 205 $ 630 Number of units outstanding, end of period (000's) ................................. 10 8 9 4 10 Total Return** ........................... 6.20% 18.76% 64.65% (30.26)% (17.25)% Alliance Mid Cap Growth Fund RIA, 0.50%* Unit Value, end of period ................ $ 260.60 $ 243.18 $ 202.90 $ 120.44 $ 170.69 Net Assets (000's) ....................... $ 7,131 $ 9,205 $ 10,858 $ 7,945 $ 17,765 Number of units outstanding, end of period (000's) ................................. 27 38 54 66 104 Total Return** ........................... 7.16% 19.85% 68.47% (9.44)% (17.84)% Alliance Mid Cap Growth Fund MRP, 1.65%* Unit Value, end of period ................ $ 55.68 $ 52.60 $ 44.47 $ 26.74 $ 38.49 Net Assets (000's) ....................... $ 22,571 $ 23,566 $ 19,026 $ 10,128 $ 13,899 Number of units outstanding, end of period (000's) ................................. 405 448 428 379 361 Total Return** ........................... 5.86% 18.28% 66.31% (30.53)% (19.04)% Mid Cap Growth Stock Account Institutional Unit Value, end of period ................ $ 27,618.80 $ 25,643.95 $ 21,289.52 $ 12,574.23 -- Net Assets (000's) ....................... $ 80,757 $ 88,036 $ 78,856 $ 52,724 -- Number of units outstanding, end of period (000's) ................................. 3 3 4 4 -- Total Return** ........................... 7.70% 20.45% 69.31% (29.08)% -- Alliance Mid Cap Growth Fund EPP, 0.50%* Unit Value, end of period ................ $ 260.60 $ 243.18 $ 202.90 $ 120.44 $ 170.69 Net Assets (000's) ....................... -- $ 30 $ 25 $ 35 $ 40 Number of units outstanding, end of period (000's) ................................. -- -- -- -- -- Total Return** ........................... 7.16% 19.85% 68.47% (29.44)% (17.25)%
78 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 8. Accumulation Unit Values (Continued)
Years Ended December 31, ---------------------------------------------------------------- 2005 2004 2003 2002 2001 ---------------------------------------------------------------- AXA Premier VIP High Yield RIA, 0.05% Unit value, end of period .................................. $ 195.49 $ 189.31 $ 173.86 $ 141.56 $ 145.57 Net Assets (000's) ......................................... $ 1,099 $ 1,098 $ 1,196 $ 1,179 $ 1,456 Number of units outstanding, end of period (000's) ......... 6 6 7 8 10 Total Return** ............................................. 3.26% 8.89% 22.82% (2.75)% 0.89% AXA Premier VIP Technology (j) RIA 0.00% Unit value, end of period .................................. $ 121.82 $ 109.49 -- -- -- Net Assets (000's) ......................................... $ 332 $ 420 -- -- -- Number of units outstanding, end of period (000's) ......... 3 3 -- -- -- Total Return** ............................................. 11.26% 9.49% -- -- -- MRP, 1.00% Unit value, end of period .................................. $ 11.94 $ 10.85 -- -- -- Net Assets (000's) ......................................... $ 1,761 $ 1,255 -- -- -- Number of units outstanding, end of period (000's) ......... 147 115 -- -- -- Total Return** ............................................. 10.05% 8.53% -- -- -- EQ/Alliance Growth and Income 0.05% RIA, 0.05% Unit value, end of period .................................. $ 355.66 $ 336.45 $ 298.75 $ 228.60 $ 289.75 Net Assets (000's) ......................................... $ 4,662 $ 6,248 $ 7,317 $ 8,226 $ 15,647 Number of units outstanding, end of period (000's) ......... 13 19 24 36 54 Total Return** ............................................. 5.71% 12.62% 30.69% (21.10)% (1.34)%
79 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 8. Accumulation Unit Values (Continued)
Years Ended December 31, ------------------------------------------------------------------ 2005 2004 2003 2002 2001 ------------------------------------------------------------------ EQ/Alliance Intermediate Government Securities 0.05% RIA, 0.05% Unit value, end of period .................................. $ 182.87 $ 180.27 $ 176.49 $ 172.44 $ 158.49 Net Assets (000's) ......................................... $ 462 $ 9,879 $ 10,620 $ 10,317 $ 1,268 Number of units outstanding, end of period (000's) ......... 3 55 60 60 8 Total Return** ............................................. 1.44% 2.14% 2.35% 8.80% 8.10% MRP, 1.00% (h) Unit value, end of period .................................. $ 10.23 $ 10.22 $ 10.16 $ 10.09 -- Net Assets (000's) ......................................... $ 2,272 $ 1,755 $ 2,300 $ 172 -- Number of units outstanding, end of period (000's) ......... 222 171 226 17 -- Total Return** ............................................. 0.10% 0.63% 0.69% 0.90% -- EQ/Alliance International (f) RIA 0.05% Unit value, end of period .................................. $ 166.42 $ 144.93 $ 122.39 $ 90.42 $ 100.42 Net Assets (000's) ......................................... $ 3,005 $ 4,155 $ 4,885 $ 4,765 $ 1,205 Number of units outstanding, end of period (000's) ......... 18 29 40 53 12 Total Return** ............................................. 14.83% 18.41% 35.36% (9.96)% (22.90)% MRP 1.00% Unit value, end of period .................................. $ 19.36 $ 16.95 $ 14.48 $ 10.84 -- Net Assets (000's) ......................................... $ 16,873 $ 13,912 $ 11,487 $ 8,206 -- Number of units outstanding, end of period (000's) ......... 871 822 795 757 -- Total Return** ............................................. 14.27% 17.03% 33.59% 8.40% -- EQ/Alliance Large Cap Growth RIA 0.00% Unit value, end of period .................................. $ 74.54 $ 64.86 $ 59.84 $ 48.57 $ 70.55 Net Assets (000's) ......................................... $ 417 $ 897 $ 1,052 $ 1,172 $ 2,328 Number of units outstanding, end of period (000's) ......... 6 14 18 24 33 Total Return** ............................................. 14.92% 8.44% 23.20% (31.15)% (23.97)% EQ/Alliance Quality Bond RIA 0.05% Unit value, end of period .................................. $ 204.72 $ 200.31 $ 192.69 $ 185.72 $ 172.14 Net Assets (000's) ......................................... $ 1,063 $ 1,686 $ 2,470 $ 3,188 $ 2,926 Number of units outstanding, end of period (000's) ......... 5 8 13 17 17 Total Return** ............................................. 2.20% 3.96% 3.75% 7.89% 8.24% EQ/Alliance Small Cap Growth (d) RIA 0.05% Unit value, end of period .................................. $ 174.22 $ 155.93 $ 136.53 $ 96.68 $ 138.34 Net Assets (000's) ......................................... $ 1,063 $ 1,480 $ 1,911 $ 1,214 $ 2,213 Number of units outstanding, end of period (000's) ......... 6 9 14 13 16 Total Return** ............................................. 11.73% 14.21% 41.21% (30.11)% (13.06)%
80 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 8. Accumulation Unit Values (Continued)
Years Ended December 31, ------------------------------------------------------------------ 2005 2004 2003 2002 2001 ------------------------------------------------------------------ EQ/Bernstein Diversified Value (b) RIA 0.00% Unit value, end of period .................................. $ 130.84 $ 124.10 $ 109.39 $ 84.97 $ 98.39 Net Assets (000's) ......................................... $ 843 $ 12,366 $ 10,583 $ 7,555 $ 295 Number of units outstanding, end of period (000's) ......... 6 100 97 89 3 Total Return** ............................................. 5.43% 13.44% 28.74% (13.64)% 1.61% EQ/Bernstein Diversified Value 1.00% (b) MRP 1.00% Unit value, end of period .................................. $ 12.72 $ 12.20 $ 10.89 $ 8.57 $ 10.08 Net Assets (000's) ......................................... $ 8,093 $ 7,120 $ 5,306 $ 3,711 $ 3,740 Number of units outstanding, end of period (000's) ......... 636 584 487 433 371 Total Return** ............................................. 4.24% 12.02% 27.07% (14.98)% 0.83% EQ/Calvert Socially Responsible RIA 0.00% Unit value, end of period .................................. $ 93.56 $ 86.05 $ 83.07 $ 64.92 $ 88.27 Net Assets (000's) ......................................... $ 3 $ 1 -- -- -- Number of units outstanding, end of period (000's) ......... -- -- -- -- -- Total Return** ............................................. 8.73% 3.59% 27.96% (26.45)% (14.70)% EQ/Calvert Socially Responsible 1.00% MRP 1.00% Unit value, end of period .................................. $ 8.14 $ 7.57 $ 7.41 $ 5.87 $ 8.10 Net Assets (000's) ......................................... $ 1,267 $ 1,008 $ 7,735 $ 332 $ 292 Number of units outstanding, end of period (000's) ......... 156 135 99 57 36 Total Return** ............................................. 7.50% 2.22% 26.24% (27.58)% (15.89)% EQ/Capital Guardian Growth RIA 0.00% Unit value, end of period .................................. $ 75.98 $ 72.29 $ 68.49 $ 55.26 $ 75.02 Net Assets (000's) ......................................... $ 40 $ 38 $ 47 $ 96 $ 150 Number of units outstanding, end of period (000's) ......... 1 1 1 2 2 Total Return** ............................................. 5.10% 5.53% 23.95% (26.34)% (24.46)% EQ/Capital Guardian International RIA 0.00% Unit value, end of period .................................. $ 123.42 $ 105.37 $ 92.75 $ 69.94 $ 82.32 Net Assets (000's) ......................................... $ 184 $ 199 $ 144 $ 74 $ 82 Number of units outstanding, end of period (000's) ......... 1 2 2 1 1 Total Return** ............................................. 17.13% 13.61% 32.61% (15.04)% (20.88)% EQ/Capital Guardian International 1.00% MRP 1.00% (j) Unit value, end of period .................................. $ 11.46 $ 9.90 $ 8.82 $ 6.74 $ 8.05 Net Assets (000's) ......................................... $ 1,834 $ 919 $ 489 $ 148 $ 24 Number of units outstanding, end of period (000's) ......... 160 92 55 22 3 Total Return** ............................................. 15.76% 12.23% 30.86% (16.27)% (19.52)%
81 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 8. Accumulation Unit Values (Continued)
Years Ended December 31, ----------------------------------------------------------------- 2005 2004 2003 2002 2001 ----------------------------------------------------------------- EQ/Capital Guardian Research (e) RIA 0.00% Unit value, end of period .................................. $ 127.38 $ 120.11 $ 108.30 $ 82.36 $ 109.33 Net Assets (000's) ......................................... $ 370 $ 803 $ 646 $ 724 $ 109 Number of units outstanding, end of period (000's) ......... 3 7 6 9 1 Total Return** ............................................. 6.05% 10.90% 31.49% ( 24.67)% ( 2.02)% MRP 1.00% (g) Unit value, end of period .................................. $ 16.19 $ 15.44 $ 14.10 $ 10.87 -- Net Assets (000's) ......................................... $ 6,001 $ 5,657 $ 5,142 $ 3,489 -- Number of units outstanding, end of period (000's) ......... 371 365 364 321 -- Total Return** ............................................. 4.85% 9.53% 29.72% 8.70% -- EQ/Capital Guardian U.S. Equity (c) RIA 0.00% Unit value, end of period .................................. $ 123.78 $ 116.82 $ 106.85 $ 78.34 $ 102.63 Net Assets (000's) ......................................... $ 38 $ 302 $ 362 $ 244 $ 205 Number of units outstanding, end of period (000's) ......... -- 3 3 3 2 Total Return** ............................................. 5.96% 9.33% 36.39% ( 23.67)% ( 2.01)% MRP 1.00% (e) Unit value, end of period .................................. $ 13.84 $ 13.21 $ 12.24 $ 9.09 -- Net Assets (000's) ......................................... $ 1,591 $ 1,410 $ 789 $ 164 -- Number of units outstanding, end of period (000's) ......... 115 106 64 18 -- Total Return** ............................................. 4.75% 7.92% 34.63% ( 9.09)% -- EQ/Equity 500 Index RIA 0.05% Unit value, end of period .................................. $ 317.06 $ 303.09 $ 274.41 $ 214.26 $ 275.50 Net Assets (000's) ......................................... $ 4,802 $ 7,176 $ 10,817 $ 8,827 $ 18,459 Number of units outstanding, end of period (000's) ......... 15 24 25 41 67 Total Return** ............................................. 4.61% 10.45% 28.07% ( 22.23)% ( 11.99)% EQ/Equity 500 Index 1.00% MRP 1.00% Unit value, end of period .................................. $ 8.23 $ 7.97 $ 7.32 $ 5.81 $ 7.60 Net Assets (000's) ......................................... $ 14,545 $ 13,226 $ 6,978 $ 6,298 $ 6,969 Number of units outstanding, end of period (000's) ......... 1,768 1,658 1,477 1,084 917 Total Return** ............................................. 3.21% 8.90% 26.00% ( 23.55)% ( 13.44)%
82 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 8. Accumulation Unit Values (Continued)
Years Ended December 31, ------------------------------------------------------------------- 2005 2004 2003 2002 2001 ------------------------------------------------------------------- EQ/Evergreen Omega RIA 0.00% Unit value, end of period .................................. $ 90.54 $ 87.09 $ 81.36 $ 58.87 $ 77.48 Net Assets (000's) ......................................... -- $ 60 $ 55 $ 43 $ 77 Number of units outstanding, end of period (000's) ......... -- 1 1 1 1 Total Return** ............................................. 3.96 7.04% 38.21% (24.02)% (17.01)% EQ/FI Mid Cap RIA 0.00% Unit value, end of period .................................. $ 125.66 $ 118.14 $ 101.82 $ 70.90 $ 86.96 Net Assets (000's) ......................................... $ 496 $ 657 $ 598 $ 269 $ 87 Number of units outstanding, end of period (000's) ......... 4 6 6 4 1 Total Return** ............................................. 6.37% 16.03% 43.61% (18.47)% (13.41)% EQ/FI Small/Mid Cap Value RIA 0.00% Unit value, end of period .................................. $ 174.40 $ 156.66 $ 132.94 $ 99.75 $ 116.95 Net Assets (000's) ......................................... $ 746 $ 758 $ 891 $ 1,093 $ 468 Number of units outstanding, end of period (000's) ......... 4 5 7 11 4 Total Return** ............................................. 11.32% 17.85% 33.27% (14.70)% 3.99% EQ/FI Small/Mid Cap Value 1.00% MRP 1.00% Unit value, end of period .................................. $ 14.20 $ 12.90 $ 11.08 $ 8.43 $ 10.05 Net Assets (000's) ......................................... $ 10,150 $ 6,615 $ 4,772 $ 3,153 $ 2,332 Number of units outstanding, end of period (000's) ......... 715 513 431 374 232 Total Return** ............................................. 10.06% 16.44% 31.44% (16.11)% 2.45% EQ/Janus Large Cap Growth RIA 0.00% Unit value, end of period .................................. $ 68.55 $ 63.89 $ 56.98 $ 45.27 $ 64.96 Net Assets (000's) ......................................... $ 106 $ 180 $ 136 $ 106 $ 195 Number of units outstanding, end of period (000's) ......... 2 3 2 2 3 Total Return** ............................................. 7.29% 12.13% 25.87% (30.31)% (22.96)% EQ/JPMorgan Value Opportunities RIA 0.00% Unit value, end of period .................................. $ 132.10 $ 127.11 $ 114.64 $ 90.40 $ 111.68 Net Assets (000's) ......................................... $ 360 $ 359 $ 318 $ 264 $ 447 Number of units outstanding, end of period (000's) ......... 3 3 3 3 4 Total Return** ............................................. 3.93% 10.88% 26.81% (19.05)% (6.81)% EQ/Lazard Small Cap Value RIA 0.00% Unit value, end of period .................................. $ 197.17 $ 188.35 $ 160.84 $ 117.08 $ 135.90 Net Assets (000's) ......................................... $ 749 $ 844 $ 719 $ 482 -- Number of units outstanding, end of period (000's) ......... 4 4 5 4 -- Total Return** ............................................. 4.69% 17.11% 37.37% (13.85)% 17.73%
83 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 8. Accumulation Unit Values (Continued)
Years Ended December 31, ----------------------------------------------------------------- 2005 2004 2003 2002 2001 ----------------------------------------------------------------- EQ/Marsico Focus (a) RIA 0.00% Unit value, end of period .................................. $ 150.75 $ 136.17 $ 123.22 $ 93.97 $ 106.25 Net Assets (000's) ......................................... $ 676 $ 399 $ 290 $ 145 -- Number of units outstanding, end of period (000's) ......... 4 3 2 2 -- Total Return** ............................................. 10.71% 10.51% 31.13% (11.56)% 6.25% EQ/Mercury Basic Value Equity RIA 0.00% Unit value, end of period .................................. $ 187.64 $ 182.26 $ 164.84 $ 125.65 $ 150.76 Net Assets (000's) ......................................... $ 461 $ 1,259 $ 1,236 $ 1,135 $ 1,508 Number of units outstanding, end of period (000's) ......... 2 7 8 9 10 Total Return** ............................................. 2.95% 10.59% 31.17% (16.66)% 5.53% EQ/Mercury International Value (i) RIA 0.00% Unit value, end of period .................................. $ 134.82 $ 121.64 $ 99.99 $ 78.10 $ 93.68 Net Assets (000's) ......................................... $ 518 $ 282 $ 357 $ 373 $ 94 Number of units outstanding, end of period (000's) ......... 4 2 4 5 1 Total Return** ............................................. 10.84% 21.64% 28.03% (16.63)% (21.52)% EQ/MFS Emerging Growth Companies RIA 0.00% Unit value, end of period .................................. $ 119.42 $ 109.53 $ 97.26 $ 75.21 $ 114.52 Net Assets (000's) ......................................... $ 703 $ 1,570 $ 1,469 $ 1,735 $ 4,352 Number of units outstanding, end of period (000's) ......... 6 14 15 23 38 Total Return** ............................................. 9.03% 12.62% 29.31% (34.32)% (34.05)% EQ/MFS Emerging Growth Companies MRP 1.00% Unit value, end of period .................................. $ 5.14 $ 4.77 $ 4.29 $ 3.36 $ 5.20 Net Assets (000's) ......................................... $ 2,233 $ 1,737 $ 1,265 $ 629 $ 562 Number of units outstanding, end of period (000's) ......... 434 362 295 187 108 Total Return** ............................................. 7.78% 11.27% 27.68% (35.32)% (35.00)% EQ/MFS Investors Trust RIA 0.00% Unit value, end of period .................................. $ 100.22 $ 93.50 $ 83.93 $ 68.77 $ 87.07 Net Assets (000's) ......................................... $ 97 $ 54 $ 47 $ 43 $ 87 Number of units outstanding, end of period (000's) ......... 1 1 1 1 1 Total Return** ............................................. 7.19% 11.40% 22.04% (21.02)% (15.98)% EQ/Money Market RIA 0.05% Unit value, end of period .................................. $ 155.57 $ 151.28 $ 149.82 $ 148.67 $ 146.56 Net Assets (000's) ......................................... $ 969 $ 1,610 $ 2,671 $ 7,065 $ 5,569 Number of units outstanding, end of period (000's) ......... 6 11 18 48 38 Total Return** ............................................. 2.84% 0.98% 0.77% 1.44% 3.80%
84 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Continued) December 31, 2005 -------------------------------------------------------------------------------- 8. Accumulation Unit Values (Concluded)
Years Ended December 31, -------------------------------------------------------------------- 2005 2004 2003 2002 2001 -------------------------------------------------------------------- EQ/Small Company Index MRP 1.00% (h) Unit value, end of period .................................. $ 13.38 $ 12.99 $ 11.18 $ 7.76 $ 9.97 Net Assets (000's) ......................................... $ 3,168 $ 2,877 $ 1,756 $ 608 $ 379 Number of units outstanding, end of period (000's) ......... 237 219 157 79 38 Total Return** ............................................. 3.07% 16.15% 44.07% (22.17)% (0.30)% EQ/Van Kampen Emerging Markets Equity RIA 0.00% Unit value, end of period .................................. $ 298.30 $ 224.66 $ 181.64 $ 116.49 $ 123.81 Net Assets (000's) ......................................... $ 516 $ 383 $ 366 $ 214 $ 248 Number of units outstanding, end of period (000's) ......... 2 2 2 2 2 Total Return** ............................................. 32.78% 23.68% 55.93% (5.91)% (5.15)%
(a) Units were made available for sale on October 22, 2001. (b) A substitution of T. Rowe Equity Income Portfolio for EQ/Bernstein Diversified Portfolio occurred on May 18, 2001. Units were made available for sale on May 18, 2001. (c) A substitution of EQ/AXP New Dimensions Portfolio for EQ/Capital Guardian U.S. Equity Portfolio occurred on July 12, 2002. (d) A substitution of EQ/AXP Strategy Aggressive Portfolio for EQ/Alliance Small Cap Growth Portfolio occurred on July 12, 2002. (e) A substitution of EQ/MFS Research Portfolio for EQ/Capital Guardian Research Portfolio occurred on November 22, 2002. Units were made available for sale. (f) A substitution of EQ/Alliance Global Portfolio for EQ/Alliance International Portfolio occurred on November 22, 2002. Units were made available for sale on November 22, 2002. (g) Units were made available for sale on November 22, 2002. (h) Units were made available for sale on May 18, 2001. (i) A substitution of EQ/T. Rowe Price International Portfolio for EQ/Mercury International Value Portfolio occurred on April 26, 2002. (j) A substitution of EQ/Technology Portfolio for Alliance Premier VIP Technology Portfolio occurred on May 14, 2004 (See Note 5). (k) A substitution of the Alliance Conservative Investors, EQ/Evergreen Foundation, EQ/Putnam Balanced and Mercury World Strategy Portfolios occurred on May 18, 2001. Units were purchased in Separate Account No. 10 (Alliance Balanced Portfolio). (l) A substitution of EQ/Alliance Growth Investors Portfolio occurred on November 22, 2002. Units were purchased in Separate Account No. 10 (Alliance Balanced Portfolio). (*) Expenses as a percentage of Average Net Assets (0.05%, 0.25%, 0.40%, 0.50%, 1.00%, 1.025%, 1.25%, 1.40%, 1.50%, 1.65% annualized) for each period indicated charges made directly to contract owner account through the redemption of units and expenses of the underlying fund have been excluded. (**) These amounts represent the total return for the periods indicated, including changes in the value of the underlying fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for each period indicated from the effective date through the end of the reporting period. 85 Separate Account Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 of AXA Equitable Life Insurance Company Notes to Financial Statements (Concluded) December 31, 2005 -------------------------------------------------------------------------------- 9. Investment Income Ratio Shown below is the Investment Income Ratio throughout the periods indicated for Separate Accounts 13, 10, 4 and 3. The investment income ratio is calculated by taking the gross investment income earned divided by the average net assets of a fund during the periods indicated.
Year Ended December 31, ------------------------------------------------------ 2005 2004 2003 2002 2001 ------------------------------------------------------ Separate Account No. 13 ......... 4.10% 3.81% 3.49% 4.25% 5.78% Separate Account No. 10 ......... 2.57% 2.19 2.25 2.89 3.43 Separate Account No. 4 .......... 0.46% 0.46 0.47 0.40 0.46 Separate Account No. 3 .......... 0.11% 0.14 0.27 0.26 0.45
Shown below is the Investment Income Ratio throughout the periods indicated for Separate Account No. 66. These amounts represent the dividends, excluding distributions of capital gains, received by the Account from the underlying mutual fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as 0asset-based charges, that result in direct reductions in the unit values. The recognition of investment income by the Account is affected by the timing of the declaration of dividends by the underlying fund in which the Account invests.
Six Months Ended June 30, ------------------------------------------------------ 2005 2004 2003 2002 2001 ------------------------------------------------------ AXA Premier VIP High Yield ............................. 7.88% 6.25% 5.10% 8.55% 7.66% AXA Premier VIP Technology ............................. -- 1.22% -- -- -- EQ/Alliance Growth and Income .......................... 3.63% 1.47% 1.08% 1.26% 0.91% EQ/Alliance Intermediate Government Securities ......... 1.55% 3.14% 4.29% 6.12% 4.14% EQ/Alliance International .............................. 1.75% 2.11% 2.02% -- 1.82% EQ/Alliance Large Cap Growth ........................... -- 0.00% -- -- 0.01% EQ/Alliance Quality Bond ............................... 3.29% 3.65% 2.62% 3.96% 5.09% EQ/Alliance Small Cap Growth ........................... -- 0.00% -- -- 1.07% EQ/Bernstein Diversified Value ......................... 2.73% 2.10% 1.41% 1.71% 1.34% EQ/Calvert Socially Responsible ........................ 3.76% 0.00% -- -- 2.95% EQ/Capital Guardian Growth ............................. 0.22% 0.50% 0.07% 0.12% -- EQ/Capital Guardian International ...................... 1.84% 1.55% 1.48% 1.76% 2.13% EQ/Capital Guardian Research ........................... 0.55% 0.63% 0.44% 0.58% 0.32% EQ/Capital Guardian U.S. Equity ........................ 5.82% 0.52% 0.37% 0.53% 0.48% EQ/Equity 500 Index .................................... 2.66% 1.69% 1.31% 2.03% 0.95% EQ/Evergreen Omega ..................................... 1.14% 0.29% -- -- 0.01% EQ/FI Mid Cap .......................................... 14.40% 6.29% -- 0.02% 0.20% EQ/FI Small/Mid Cap Value .............................. 12.21% 9.48% 0.39% 0.61% 0.69% EQ/Janus Large Cap Growth .............................. -- 0.28% -- -- 0.01% EQ/JPMorgan Value Opportunities ........................ 1.52% 1.32% 1.37% 1.13% 1.00% EQ/Lazard Small Cap Value .............................. 8.29% 10.85% 1.14% 1.23% 5.93% EQ/Marsico Focus ....................................... 2.83% 0.00% -- -- -- EQ/Mercury Basic Value Equity .......................... 3.16% 4.94% 0.48% 1.16% 3.48% EQ/Mercury International Value ......................... 1.92% 1.44% 2.10% 0.84% 0.53% EQ/MFS Emerging Growth Companies ....................... -- 0.00% -- -- 0.02% EQ/MFS Investors Trust ................................. 0.61% 0.59% 0.60% 0.53% 0.37% EQ/Money Market ........................................ 2.93% 0.84% 0.49% 1.68% 2.97% EQ/Small Company Index ................................. 5.88% 4.43% 0.37% 0.67% 1.58% EQ/Van Kampen Emerging Markets Equity .................. 4.06% 0.60% 0.79% -- --
86 Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholder of AXA Equitable Life Insurance Company: In our opinion, based on our audits and the reports of other auditors, the accompanying consolidated balance sheets and the related consolidated statements of earnings, of shareholder's equity and comprehensive income and of cash flows present fairly, in all material respects, the financial position of AXA Equitable Life Insurance Company and its subsidiaries ("AXA Equitable") at December 31, 2005 and December 31, 2004, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2005 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the AXA Equitable's management. Our responsibility is to express an opinion on these financial statements based on our audits. We did not audit the financial statements of AllianceBernstein L.P. and AllianceBernstein Holding L.P., subsidiaries of AXA Equitable, as of and for the year ended December 31, 2005, whose statements reflect total assets of seven percent of the related consolidated total as of December 31, 2005 and total revenues of thirty-six percent of the related consolidated total for the year ended December 31, 2005. Those statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion expressed herein, insofar as it relates to the amounts included for AllianceBernstein L.P. and AllianceBernstein Holding L.P., is based solely on the reports of the other auditors. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits and the reports of other auditors provide a reasonable basis for our opinion. As discussed in Note 2 of the Notes to Consolidated Financial Statements, in 2004, AXA Equitable changed its method of accounting for variable interest entities and certain nontraditional long-duration contracts and for Separate Accounts. /s/ PricewaterhouseCoopers LLP New York, New York March 17, 2006 F-1 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The General Partner and Unitholders AllianceBernstein L.P.: We have audited the accompanying consolidated statements of financial condition of AllianceBernstein L.P. and subsidiaries ("AllianceBernstein"), formerly Alliance Capital Management L.P., as of December 31, 2005 and 2004, and the related consolidated statements of income, changes in partners' capital and comprehensive income and cash flows for each of the years in the three-year period ended December 31, 2005. These consolidated financial statements are the responsibility of the management of the General Partner. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of AllianceBernstein as of December 31, 2005 and 2004, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2005, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of AllianceBernstein's internal control over financial reporting as of December 31, 2005, based on criteria established in Internal Control--Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated February 24, 2006 expressed an unqualified opinion on management's assessment of, and the effective operation of, internal control over financial reporting. /s/ KPMG LLP New York, New York February 24, 2006 F-2 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The General Partner and Unitholders AllianceBernstein Holding L.P. We have audited the accompanying statements of financial condition of AllianceBernstein Holding L.P. ("AllianceBernstein Holding"), formerly Alliance Capital Management Holding L.P., as of December 31, 2005 and 2004, and the related statements of income, changes in partners' capital and comprehensive income and cash flows for each of the years in the three-year period ended December 31, 2005. These financial statements are the responsibility of the management of the General Partner. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of AllianceBernstein Holding as of December 31, 2005 and 2004, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2005, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of AllianceBernstein Holding's internal control over financial reporting as of December 31, 2005, based on criteria established in Internal Control--Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated February 24, 2006 expressed an unqualified opinion on management's assessment of, and the effective operation of, internal control over financial reporting. /s/ KPMG LLP New York, New York February 24, 2006 F-3 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2005 AND 2004
2005 2004 ----------------- ----------------- (IN MILLIONS) ASSETS Investments: Fixed maturities available for sale, at estimated fair value................$ 30,034.8 $ 30,722.3 Mortgage loans on real estate............................................... 3,233.9 3,131.9 Equity real estate, held for the production of income....................... 658.2 643.2 Policy loans................................................................ 3,824.2 3,831.4 Other equity investments.................................................... 1,122.1 1,010.5 Other invested assets....................................................... 1,290.9 1,053.3 ----------------- ----------------- Total investments....................................................... 40,164.1 40,392.6 Cash and cash equivalents..................................................... 1,112.1 1,739.6 Cash and securities segregated, at estimated fair value....................... 1,720.8 1,489.0 Broker-dealer related receivables............................................. 2,929.1 2,187.7 Deferred policy acquisition costs............................................. 7,557.3 6,813.9 Goodwill and other intangible assets, net..................................... 3,758.8 3,761.4 Amounts due from reinsurers................................................... 2,604.4 2,549.6 Loans to affiliates........................................................... 400.0 400.0 Other assets.................................................................. 3,723.5 3,600.9 Separate Accounts' assets..................................................... 69,997.0 61,559.4 ----------------- ----------------- TOTAL ASSETS................................................................ $ 133,967.1 $ 124,494.1 ================= ================= LIABILITIES Policyholders' account balances............................................. $ 27,194.0 $ 26,875.1 Future policy benefits and other policyholders liabilities.................. 13,997.8 14,099.6 Broker-dealer related payables.............................................. 1,226.9 945.9 Customers related payables.................................................. 2,924.3 2,658.7 Amounts due to reinsurers................................................... 1,028.3 994.0 Short-term and long-term debt............................................... 855.4 1,255.5 Loans from affiliates....................................................... 325.0 - Income taxes payable........................................................ 2,821.9 2,714.8 Other liabilities........................................................... 1,786.6 1,859.6 Separate Accounts' liabilities.............................................. 69,997.0 61,559.4 Minority interest in equity of consolidated subsidiaries.................... 2,096.4 2,040.4 Minority interest subject to redemption rights.............................. 271.6 266.6 ----------------- ----------------- Total liabilities..................................................... 124,525.2 115,269.6 ----------------- ----------------- Commitments and contingencies (Notes 12, 14, 15, 16 and 17) SHAREHOLDER'S EQUITY Common stock, $1.25 par value, 2.0 million shares authorized, issued and outstanding................................................... 2.5 2.5 Capital in excess of par value.............................................. 4,976.3 4,890.9 Retained earnings........................................................... 4,030.8 3,457.0 Accumulated other comprehensive income...................................... 432.3 874.1 ----------------- ----------------- Total shareholder's equity.................................................. 9,441.9 9,224.5 ----------------- ----------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY.................................. $ 133,967.1 $ 124,494.1 ================= =================
See Notes to Consolidated Financial Statements. F-4 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF EARNINGS YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) REVENUES Universal life and investment-type product policy fee income........................................... $ 1,889.3 $ 1,595.4 $ 1,376.7 Premiums...................................................... 881.7 879.6 889.4 Net investment income......................................... 2,492.8 2,501.4 2,386.9 Investment gains (losses), net................................ 55.4 65.0 (62.3) Commissions, fees and other income............................ 3,632.3 3,383.5 2,811.8 ----------------- ----------------- ----------------- Total revenues.......................................... 8,951.5 8,424.9 7,402.5 ----------------- ----------------- ----------------- BENEFITS AND OTHER DEDUCTIONS Policyholders' benefits....................................... 1,859.8 1,867.1 1,708.2 Interest credited to policyholders' account balances.......... 1,065.5 1,038.1 969.7 Compensation and benefits..................................... 1,804.4 1,604.9 1,327.0 Commissions................................................... 1,128.7 1,017.3 991.9 Distribution plan payments.................................... 292.0 374.2 370.6 Amortization of deferred sales commissions.................... 132.0 177.4 208.6 Interest expense.............................................. 76.3 76.8 82.3 Amortization of deferred policy acquisition costs............. 601.3 472.9 434.6 Capitalization of deferred policy acquisition costs........... (1,199.4) (1,015.9) (990.7) Rent expense.................................................. 165.2 185.0 165.8 Amortization of other intangible assets....................... 23.6 22.9 21.9 AllianceBernstein charge for mutual fund matters and legal proceedings....................................... - - 330.0 Other operating costs and expenses............................ 957.1 930.0 832.4 ----------------- ----------------- ----------------- Total benefits and other deductions..................... 6,906.5 6,750.7 6,452.3 ----------------- ----------------- ----------------- Earnings from continuing operations before income taxes and minority interest........................ 2,045.0 1,674.2 950.2 Income taxes.................................................. (519.5) (396.3) (240.5) Minority interest in net income of consolidated subsidiaries.. (466.9) (384.1) (188.7) ----------------- ----------------- ----------------- Earnings from continuing operations........................... 1,058.6 893.8 521.0 Earnings from discontinued operations, net of income taxes.... 15.2 7.9 3.4 Gain on sale of discontinued operations, net of income taxes.. - 31.1 - Cumulative effect of accounting changes, net of income taxes.............................................. - (2.9) - ----------------- ----------------- ----------------- Net Earnings.................................................. $ 1,073.8 $ 929.9 $ 524.4 ================= ================= =================
See Notes to Consolidated Financial Statements. F-5 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY AND COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003
2005 2004 2003 ----------------- ---------------- ---------------- (IN MILLIONS) SHAREHOLDER'S EQUITY Common stock, at par value, beginning and end of year............. $ 2.5 $ 2.5 $ 2.5 ----------------- ---------------- ---------------- Capital in excess of par value, beginning of year................. 4,890.9 4,848.2 4,812.8 Changes in capital in excess of par value......................... 85.4 42.7 35.4 ----------------- ---------------- ---------------- Capital in excess of par value, end of year....................... 4,976.3 4,890.9 4,848.2 ----------------- ---------------- ---------------- Retained earnings, beginning of year.............................. 3,457.0 3,027.1 2,902.7 Net earnings...................................................... 1,073.8 929.9 524.4 Dividends on common stock......................................... (500.0) (500.0) (400.0) ----------------- ---------------- ---------------- Retained earnings, end of year.................................... 4,030.8 3,457.0 3,027.1 ----------------- ---------------- ---------------- Accumulated other comprehensive income, beginning of year......... 874.1 892.8 681.1 Other comprehensive (loss) income................................. (441.8) (18.7) 211.7 ----------------- ---------------- ---------------- Accumulated other comprehensive income, end of year............... 432.3 874.1 892.8 ----------------- ---------------- ---------------- Total Shareholder's Equity, End of Year........................... $ 9,441.9 $ 9,224.5 $ 8,770.6 ================= ================ ================ COMPREHENSIVE INCOME Net earnings...................................................... $ 1,073.8 $ 929.9 $ 524.4 ----------------- ---------------- ---------------- Change in unrealized (losses) gains, net of reclassification adjustments.................................................... (441.8) (31.1) 211.7 Cumulative effect of accounting changes........................... - 12.4 - ----------------- ---------------- ---------------- Other comprehensive (loss) income................................. (441.8) (18.7) 211.7 ----------------- ---------------- ---------------- Comprehensive Income.............................................. $ 632.0 $ 911.2 $ 736.1 ================= ================ ================
See Notes to Consolidated Financial Statements. F-6 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) Net earnings.................................................. $ 1,073.8 $ 929.9 $ 524.4 Adjustments to reconcile net earnings to net cash provided by operating activities: Interest credited to policyholders' account balances........ 1,065.5 1,038.1 969.7 Universal life and investment-type product policy fee income......................................... (1,889.3) (1,595.4) (1,376.7) Net change in broker-dealer and customer related receivables/payables...................................... (347.4) 379.6 22.5 Investment (gains) losses, net.............................. (55.4) (65.0) 62.3 Change in deferred policy acquisition costs................. (598.1) (543.0) (556.1) Change in future policy benefits............................ 64.4 129.3 (97.4) Change in property and equipment............................ (7.5) (69.3) (55.8) Change in income tax payable................................ 340.5 349.6 246.3 Change in accounts payable and accrued expenses............. 23.7 (27.4) 276.8 Change in segregated cash and securities, net............... (231.8) (203.2) (111.5) Minority interest in net income of consolidated subsidiaries 466.9 384.1 188.7 Change in fair value of guaranteed minimum income benefit reinsurance contracts............................. (42.6) (61.0) 91.0 Amortization of deferred sales commissions.................. 132.0 177.4 208.6 Amortization of other intangible assets, net................ 23.6 22.9 21.9 Other, net.................................................. (63.5) 197.0 272.6 ----------------- ----------------- ----------------- Net cash used provided by operating activities................ (45.2) 1,043.6 687.3 ----------------- ----------------- ----------------- Cash flows from investing activities: Maturities and repayments................................... 2,926.2 3,341.9 4,216.4 Sales....................................................... 2,432.9 2,983.6 4,818.2 Purchases................................................... (5,869.1) (7,052.5) (11,457.9) Change in short-term investments............................ 13.8 (18.4) 610.7 Purchase of minority interest in consolidated subsidiary ... - (410.7) - Other, net.................................................. (131.5) 169.7 89.3 ----------------- ----------------- ----------------- Net cash used by investing activities......................... (627.7) (986.4) (1,723.3) ----------------- ----------------- ----------------- Cash flows from financing activities: Policyholders' account balances: Deposits................................................... 3,816.8 4,029.4 5,639.1 Withdrawals and transfers to Separate Accounts............. (2,779.1) (2,716.0) (3,181.1) Net change in short-term financings......................... - - (22.1) Repayments of long-term..................................... (400.0) - - Increase in loans from affiliates........................... 325.0 - - Shareholder dividends paid.................................. (500.0) (500.0) (400.0) Other, net.................................................. (417.3) (130.1) (270.4) ----------------- ----------------- ----------------- Net cash provided by financing activities..................... 45.4 683.3 1,765.5 ----------------- ----------------- ----------------- Change in cash and cash equivalents........................... (627.5) 740.5 729.5 Cash and cash equivalents, beginning of year.................. 1,739.6 999.1 269.6 ----------------- ----------------- ----------------- Cash and Cash Equivalents, End of Year........................ $ 1,112.1 $ 1,739.6 $ 999.1 ================= ================= =================
F-7 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003 (CONTINUED)
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) Supplemental cash flow information: Interest Paid............................................... $ 74.5 $ 86.2 $ 91.0 ================= ================= ================= Income Taxes Paid (Refunded) ............................... $ 146.5 $ 154.4 $ (45.7) ================= ================= =================
See Notes to Consolidated Financial Statements. F-8 AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1) ORGANIZATION In 2004, The Equitable Life Assurance Society of the United States was renamed AXA Equitable Life Insurance Company ("AXA Equitable"). AXA Equitable, collectively with its consolidated subsidiaries (the "Company"), is an indirect, wholly owned subsidiary of AXA Financial, Inc. ("AXA Financial," and collectively with its consolidated subsidiaries, "AXA Financial Group"). The Company's insurance business, which comprises the Insurance segment, is conducted principally by AXA Equitable and its wholly owned life insurance subsidiary, AXA Life and Annuity Company ("AXA Life"), whose name was changed in 2004 from The Equitable of Colorado. The Company's investment management business, which comprises the Investment Services segment, is principally conducted by AllianceBernstein L.P. (formerly Alliance Capital Management L.P., and collectively with its consolidated subsidiaries ("AllianceBernstein")). In October 2000, AllianceBernstein acquired substantially all of the assets and liabilities of SCB Inc., formerly known as Sanford C. Bernstein, Inc. ("Bernstein"). In the fourth quarter of 2002, the Company acquired 8.16 million units in AllianceBernstein ("AllianceBernstein Units") at the aggregate market price of $249.7 million from SCB Inc. and SCB Partners, Inc. under a preexisting agreement (see Note 2 of Notes to Consolidated Financial Statements). In March and December 2004, the Company acquired a total of 10.7 million AllianceBernstein Units at the aggregated market price of $410.7 million from SCB Inc. and SCB Partners, Inc. under this preexisting agreement. As a result of the 2004 transactions, the Company recorded additional goodwill of $217.9 million and other intangible assets of $26.9 million. The Company's consolidated economic interest in AllianceBernstein was 46.3% at December 31, 2005, and together with its ownership with other AXA Financial Group companies, the consolidated economic interests in AllianceBernstein was approximately 61.1%. In July 2004, AXA Financial completed its acquisition of The MONY Group Inc. ("MONY"). The acquisition provides AXA Financial Group with additional scale in distribution, client base and assets under management. AXA, a French holding company for an international group of insurance and related financial services companies, has been AXA Financial's largest shareholder since 1992. In 2000, AXA acquired the approximately 40% of outstanding AXA Financial common stock ("Common Stock") it did not already own. On January 2, 2001, AXA Merger Corp. ("AXA Merger"), a wholly owned subsidiary of AXA, was merged with and into AXA Financial, resulting in AXA Financial Group becoming a wholly owned subsidiary of AXA. 2) SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation ----------------------------------------------------- The preparation of the accompanying consolidated financial statements in conformity with generally accepted accounting principles in the United States of America ("GAAP") requires management to make estimates and assumptions (including normal, recurring accruals) that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The accompanying consolidated financial statements reflect all adjustments necessary in the opinion of management to present fairly the consolidated financial position of the Company and its consolidated results of operations and cash flows for the periods presented. The accompanying consolidated financial statements include the accounts of AXA Equitable and its subsidiary engaged in insurance related businesses (collectively, the "Insurance Group"); other subsidiaries, principally AllianceBernstein; and those investment companies, partnerships and joint ventures in which AXA Equitable or its subsidiaries has control and a majority economic interest as well as those variable interest entities ("VIEs") that meet the requirements for consolidation. F-9 All significant intercompany transactions and balances except those with discontinued operations have been eliminated in consolidation. The years "2005," "2004" and "2003" refer to the years ended December 31, 2005, 2004 and 2003, respectively. Certain reclassifications have been made in the amounts presented for prior periods to conform those periods to the current presentation. Closed Block ------------ As a result of demutualization, the Closed Block was established in 1992 for the benefit of certain individual participating policies that were in force on that date. Assets, liabilities and earnings of the Closed Block are specifically identified to support its participating policyholders. Assets allocated to the Closed Block inure solely to the benefit of the Closed Block policyholders and will not revert to the benefit of AXA Financial. No reallocation, transfer, borrowing or lending of assets can be made between the Closed Block and other portions of AXA Equitable's General Account, any of its Separate Accounts or any affiliate of AXA Equitable without the approval of the New York Superintendent of Insurance (the "Superintendent"). Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the General Account. The excess of Closed Block liabilities over Closed Block assets represents the expected future post-tax contribution from the Closed Block that would be recognized in income over the period the policies and contracts in the Closed Block remain in force. Discontinued Operations ----------------------- In 1991, management discontinued the business of certain pension operations principally consisting of group non-participating wind-up annuity products ("Wind-up Annuities"), the terms of which were fixed at issue, which were sold to corporate sponsors of terminated qualified defined benefit plans, for which a premium deficiency reserve has been established. Management reviews the adequacy of the allowance for future losses each quarter and makes adjustments when necessary. Management believes the allowance for future losses at December 31, 2005 is adequate to provide for all future losses; however, the determination of the allowance involves numerous estimates and subjective judgments regarding the expected performance of invested assets held by Wind-up Annuities ("Discontinued Operations Investment Assets"). There can be no assurance the losses provided for will not differ from the losses ultimately realized. To the extent actual results or future projections of Wind-up Annuities differ from management's current estimates and assumptions underlying the allowance for future losses, the difference would be reflected in the consolidated statements of earnings in Wind-up Annuities. In particular, to the extent income, sales proceeds and holding periods for equity real estate differ from management's previous assumptions, periodic adjustments to the allowance are likely to result. See Note 8 of Notes to Consolidated Financial Statements. Equity real estate classified as held-for-sale is included in Discontinued Operations. Accounting Changes ------------------ On May 19, 2004, the Financial Accounting Standards Board (the "FASB") approved the issuance of FASB Staff Position ("FSP") No. 106-2, "Accounting and Disclosure Requirements Related to the Medicare Prescription Drug Improvement and Modernization Act of 2003", that provides guidance on employers' accounting for the effects of the Medicare Prescription Drug, Improvement and Modernization Act of 2003 ("MMA") signed into law in December 2003. FSP No. 106-2 became effective for the first interim or annual period beginning after June 15, 2004 and required the effects of the MMA, including estimates of the Federal subsidy to employers whose plans provide a prescription drug benefit that is at least as valuable as (i.e., "actuarially equivalent" to) the new Medicare Part D benefit, to be reflected in measurements of the accumulated postretirement benefits obligation and net periodic postretirement benefit cost made on or after the date of enactment. As permitted by FSP No. 106-2, the Company initially elected to defer these remeasurements and to provide required disclosures pending regulations regarding the determination of eligibility for the Federal subsidy under the MMA. As more fully described in Note 13 of Notes to Consolidated Financial Statements, following consideration of regulations and guidance issued by the Center for Medicare and Medicaid Services, the Company completed its transition to FSP No. 106-2 in fourth quarter 2005 by reducing the accumulated benefits obligations of the Company's retiree medical plans as at January 1, 2005 to give effect to the subsidy expected to be received in 2006 and future years. These remeasurements resulted in an aggregate decrease in the annual net periodic postretirement benefits costs for 2005 of approximately $7.4 million. At March 31, 2004, the Company completed its transition to the consolidation and disclosure requirements of FASB Interpretation ("FIN") No. 46(R), "Consolidation of Variable Interest Entities, Revised". F-10 At December 31, 2005 and 2004, the Insurance Group's General Account held $5.8 million and $34.1 million of investment assets issued by VIEs and determined to be significant variable interests under FIN No. 46(R). At December 31, 2005 and 2004, as reported in the consolidated balance sheet, these investments included $4.7 million and $32.9 million of fixed maturities (collateralized debt and loan obligations) and $1.1 million and $1.2 million of other equity investments (principally investment limited partnership interests) and are subject to ongoing review for impairment in value. These VIEs do not require consolidation because management has determined that the Insurance Group is not the primary beneficiary. These variable interests at December 31, 2005 represent the Insurance Group's maximum exposure to loss from its direct involvement with the VIEs. The Insurance Group has no further economic interest in these VIEs in the form of related guarantees, commitments, derivatives, credit enhancements or similar instruments and obligations. Management of AllianceBernstein has reviewed its investment management agreements and its investments in and other financial arrangements with certain entities that hold client assets under management to determine the entities that AllianceBernstein is required to consolidate under FIN No. 46(R). These include certain mutual fund products domiciled in Luxembourg, India, Japan, Singapore and Australia (collectively, the "Offshore Funds"), hedge funds, structured products, group trusts and joint ventures. As a result of its review, in second and third quarters of 2004, AllianceBernstein had consolidated an investment in a joint venture and its funds under management. At December 31, 2004, AllianceBernstein sold this investment and accordingly, no longer consolidates this investment and its funds under management. AllianceBernstein derived no direct benefit from client assets under management of these entities other than investment management fees and cannot utilize those assets in its operations. AllianceBernstein has significant variable interests in certain other VIEs with approximately $403.0 million in client assets under management. However, these VIEs do not require consolidation because management has determined that AllianceBernstein is not the primary beneficiary. AllianceBernstein's maximum exposure to loss in these entities is limited to its nominal investments in and prospective investment management fees earned from these entities. Effective January 1, 2004, the Company adopted Statement of Position ("SOP") 03-1, "Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts". SOP 03-1 required a change in the Company's accounting policies relating to (a) general account interests in separate accounts, (b) assets and liabilities associated with market value adjusted fixed rate investment options available in certain variable annuity contracts, (c) liabilities related to group pension participating contracts, and (d) liabilities related to certain mortality and annuitization benefits, such as the no lapse guarantee feature contained in variable and interest-sensitive life policies. The adoption of SOP 03-1 required changes in several of the Company's accounting policies relating to separate account assets and liabilities. The Company now reports the General Account's interests in separate accounts as trading account securities in the consolidated balance sheet; prior to the adoption of SOP 03-1, such interests were included in Separate Accounts' assets. Also, the assets and liabilities of two Separate Accounts are now presented and accounted for as General Account assets and liabilities, effective January 1, 2004. Investment assets in these Separate Accounts principally consist of fixed maturities that are classified as available for sale in the accompanying consolidated financial statements. These two Separate Accounts hold assets and liabilities associated with market value adjusted fixed rate investment options available in certain variable annuity contracts. In addition, liabilities associated with the market value adjustment feature are now reported at the accrued account balance. Prior to the adoption of SOP 03-1, such liabilities had been reported at market adjusted value. Prior to the adoption of SOP 03-1, the liabilities for group pension participating contracts were adjusted only for changes in the fair value of certain related investment assets that were reported at fair value in the balance sheet (including fixed maturities and equity securities classified as available for sale, but not equity real estate or mortgage loans) with changes in the liabilities recorded directly in Accumulated other comprehensive income to offset the unrealized gains and losses on the related assets. SOP 03-1 required an adjustment to the liabilities for group pension participating contracts to reflect the fair value of all the assets on which those contracts' returns are based, regardless of whether those assets are reported at fair value in the balance sheet. Changes in the liability related to F-11 fluctuations in asset fair values are now reported as Interest credited to policyholders' account balances in the consolidated statements of earnings. In addition, the adoption of SOP 03-1 resulted in a change in the method of determining liabilities associated with the no lapse guarantee feature contained in variable and interest-sensitive life contracts. While both the Company's previous method of establishing the no lapse guarantee reserve and the SOP 03-1 method are based on accumulation of a portion of the charges for the no lapse guarantee feature, SOP 03-1 specifies a different approach for identifying the portion of the fee to be accrued and establishing the related reserve. The adoption of SOP 03-1 as of January 1, 2004 resulted in a decrease in 2004 net earnings of $2.9 million and an increase in other comprehensive income of $12.4 million related to the cumulative effect of the required changes in accounting. The determination of liabilities associated with group pension participating contracts and mortality and annuitization benefits, as well as related impacts on deferred acquisition costs, is based on models that involve numerous estimates and subjective judgments. There can be no assurance that the ultimate actual experience will not differ from management's estimates. New Accounting Pronouncements ----------------------------- On May 30, 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error Corrections," a replacement of Accounting Principles Board Opinion ("APB") No. 20, "Accounting Changes," and SFAS No. 3, "Reporting Accounting Changes in Interim Financial Statements". SFAS No. 154 applies to all voluntary changes in accounting principle as well as to changes required by an accounting pronouncement that does not include transition provisions. To enhance comparability, this statement requires retrospective application to prior periods' financial statements of changes in accounting principle, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. The cumulative effect of the change is reported in the carrying value of assets and liabilities as of the first period presented, with the offset applied to opening retained earnings. Each period presented is adjusted to show the period specific effects of the change. Only direct effects of the change will be retrospectively recognized; indirect effects will be recognized in the period of change. SFAS No. 154 carries forward without change APB No. 20's guidance for reporting the correction of an error and a change in accounting estimate as well as SFAS No. 3's provisions governing reporting accounting changes in interim financial statements. SFAS No. 154 is effective for accounting changes and corrections of errors made in fiscal years beginning after December 15, 2005. AXA Equitable accounts for its stock option plans and other stock-based compensation plans using the intrinsic value method in accordance with the provisions of APB No. 25 "Accounting for Stock Issued to Employees," and related interpretations. In accordance with the opinion, stock option awards result in compensation expense only if the current market price of the underlying stock exceeds the option strike price at the grant date. See Note 21 of Notes to Consolidated Financial Statements for the pro forma disclosures required by SFAS No. 123, "Accounting for Stock-Based Compensation," and SFAS No. 148, "Accounting for Stock-Based Compensation-Transition and Disclosure". On December 16, 2004, the FASB issued SFAS No. 123(R), "Share-Based Payment," requiring the cost of all share-based payments to employees, including stock options, stock appreciation rights, and certain employee stock purchase plans, to be recognized in the financial statements based on their fair values. By ruling of the Securities and Exchange Commission ("SEC"), effective April 21, 2005, public companies were permitted to delay their initial adoption of SFAS No. 123(R) from the first interim period to the first annual period beginning on or after June 15, 2005. Consequently, the Company implemented SFAS 123(R) effective January 1, 2006 and will reflect the resulting impacts of adoption in its financial reporting for first quarter 2006. As more fully described in Note 21 of Notes to Consolidated Financial Statements, the Company elected under SFAS No. 123, "Accounting for Stock-Based Compensation," to continue to account for stock-based compensation using the intrinsic value method prescribed by APB No. 25, and its related interpretations, and to provide only pro-forma disclosure of the effect on net earnings from applying the fair value based method. Accordingly, adoption of SFAS No. 123(R) will result in compensation expense for certain types of the Company's equity-settled award programs for which no cost previously would have been charged to net earnings under APB No. 25, such as for employee options to purchase AXA American Depository Receipts ("ADRs") and AXA ordinary shares and for employee stock purchase plans. Similarly, certain types of the Company's cash-settled award programs, such as stock appreciation rights, may be expected to result in different amounts of compensation expense or different patterns of expense recognition under SFAS No. 123(R) as compared to APB No. 25. F-12 To effect its adoption of SFAS No. 123(R) on January 1, 2006, AXA Financial Group elected the "modified prospective method" of transition to the new accounting and reporting requirements for share-based payments. Consequently, the resulting impacts of adoption to be reflected in the Company's financial reporting for first quarter 2006 will not include a restatement of prior-period results to reflect the original recognition provisions of SFAS No. 123 as would be required under the alternative "modified retrospective method" of transition. Under the modified prospective method, the Company will be required to apply the measurement, recognition, and attribution requirements of SFAS 123(R) to new awards and to awards modified, repurchased or cancelled after January 1, 2006. In addition, the modified prospective method will require the Company to recognize compensation expense over the remaining future service/vesting periods for the unvested portions of awards outstanding at January 1, 2006, applying the same estimates of fair value and the same attribution method used previously to prepare SFAS No. 123 pro forma disclosures. The unrecognized compensation cost associated with unvested stock option awards as at January 1, 2006 was approximately $13.7 million ($8.9 million after-tax) and, under SFAS No. 123(R), will result in incremental expense in the Consolidated Statements of Earnings of the Company over a weighted average remaining service/vesting period of approximately 2.0 years. Absent additional forfeiture considerations, results for 2006 would be expected to include approximately $7.5 million ($4.8 million after tax) of additional compensation expense as related to unvested stock option awards at January 1, 2006 as a result of the adoption of SFAS 123(R). The full impact of adoption of SFAS 123(R) cannot be predicted at this time because it is largely dependent upon the nature and levels of share-based payments granted in the future. Nonetheless, while there exist differences between certain requirements of SFAS Nos. 123 and 123(R), the estimated impacts in previous periods of applying a fair-value approach to accounting for share-based awards made to employees of the Company are described and/or disclosed on a pro-forma basis in Note 21 of Notes to Consolidated Financial Statements. Management is continuing to assess the impacts of adoption of SFAS 123(R), including accounting for the income tax effects of share-based compensation, for which the Company likely will elect the transition alternative available for income taxes provided by the November 10, 2005 issuance of FSP No. 123(R)-3, "Transitions Election Related to Accounting for the Tax Effects of Share-Based Payment Awards". In addition, management is continuing to assess the impacts of the related amendment to SFAS No. 95, "Statement of Cash Flows," that in periods subsequent to adoption of SFAS 123(R) will require tax deductions in excess of recognized compensation cost to be classified as resulting from a financing activity rather than as an operating cash flow as currently required. Neither SFAS No. 123 nor SFAS No. 123(R) prescribe or specify a preference for a particular valuation technique or model for estimating the fair value of employee stock options and similar awards but instead require consideration of certain factors in selecting one that is appropriate for the unique substantive characteristics of the instruments awarded and one that can be supported by information that is available, such as exercise behavior. In its implementation of SFAS 123(R), the Company expects to continue to use the Black-Scholes-Merton formula to estimate the fair values of employee stock options. As more fully described in Note 21 of Notes to Consolidated Financial Statements, and consistent with the fair value measurement objectives of SFAS 123 and SFAS 123 (R), beginning with awards granted in 2005, the Company modified its methodologies for developing the expected stock price volatility and expected dividend assumptions used in this pricing formula. With respect to the valuation of options to purchase AXA ADRs, these changes each represent a change in accounting estimate under SFAS No. 154, "Accounting Changes and Error Corrections," and, accordingly, will be applied prospectively in determining the fair values of employee stock options to be measured and accounted for in accordance with SFAS No. 123(R). On September 19, 2005, the American Institute of Certified Public Accountants ("AICPA") released SOP 05-1, "Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection with Modifications or Exchanges of Insurance Contracts". The SOP requires identification of transactions that result in a substantial change in an insurance contract. Transactions subject to review include internal contract exchanges, contract modifications via amendment, rider or endorsement and elections of benefits, features or rights contained within the contract. If determined that a substantial change has occurred, the related DAC/VOBA and other related balances must be written off. The SOP is effective for transactions occurring in fiscal years beginning after December 15, 2006, with earlier adoption encouraged. Restatement of previously issued annual financial statements is not permitted, and disclosure of the pro forma effects of retroactive application or the pro forma effect on the year of adoption is not required. Management is currently assessing the potential impact of this new guidance on the consolidated financial results of the Company. F-13 Investments ----------- The carrying values of fixed maturities identified as available for sale are reported at estimated fair value. Changes in estimated fair value are reported in comprehensive income. The amortized cost of fixed maturities is adjusted for impairments in value deemed to be other than temporary. Mortgage loans on real estate are stated at unpaid principal balances, net of unamortized discounts and valuation allowances. Valuation allowances are based on the present value of expected future cash flows discounted at the loan's original effective interest rate or on its collateral value if the loan is collateral dependent. However, if foreclosure is or becomes probable, the collateral value measurement method is used. Impaired mortgage loans without provision for losses are loans where the fair value of the collateral or the net present value of the expected future cash flows related to the loan equals or exceeds the recorded investment. Interest income earned on loans where the collateral value is used to measure impairment is recorded on a cash basis. Interest income on loans where the present value method is used to measure impairment is accrued on the net carrying value amount of the loan at the interest rate used to discount the cash flows. Changes in the present value attributable to changes in the amount or timing of expected cash flows are reported as investment gains or losses. Real estate held for the production of income, including real estate acquired in satisfaction of debt, is stated at depreciated cost less valuation allowances. At the date of foreclosure (including in-substance foreclosure), real estate acquired in satisfaction of debt is valued at estimated fair value. Impaired real estate is written down to fair value with the impairment loss being included in investment gains (losses), net. Depreciation of real estate held for production of income is computed using the straight-line method over the estimated useful lives of the properties, which generally range from 40 to 50 years. Real estate investments meeting the following criteria are classified as real estate held-for-sale: o Management having the authority to approve the action commits the organization to a plan to sell the property. o The property is available for immediate sale in its present condition subject only to terms that are usual and customary for the sale of such assets. o An active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated and are continuing. o The sale of the asset is probable and transfer of the asset is expected to qualify for recognition as a completed sale within one year. o The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value. o Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Real estate held-for-sale is stated at depreciated cost less valuation allowances. Valuation allowances on real estate held-for-sale are computed using the lower of depreciated cost or current estimated fair value, net of disposition costs. Depreciation is discontinued on real estate held-for-sale. Real estate held-for-sale is included in the Other assets line in the consolidated balance sheets. The results of operations for real estate held-for-sale in each of the three years ended December 31, 2005 were not significant. Valuation allowances are netted against the asset categories to which they apply. Policy loans are stated at unpaid principal balances. Partnerships, investment companies and joint venture interests in which the Company has control and a majority economic interest (that is, greater than 50% of the economic return generated by the entity) or those that meet FIN No. 46(R) requirements for consolidation are consolidated; those in which the Company does not have control and a majority economic interest and those that do not meet FIN No. 46(R) requirements for consolidation are reported on the equity basis of accounting and are included either with equity real estate or other equity investments, as appropriate. Equity securities include common stock and non-redeemable preferred stock classified as either trading or available for sale securities, are carried at estimated fair value and are included in other equity investments. F-14 Short-term investments are stated at amortized cost, which approximates fair value, and are included with other invested assets. Cash and cash equivalents includes cash on hand, amounts due from banks and highly liquid debt instruments purchased with an original maturity of three months or less. All securities owned as well as United States government and agency securities, mortgage-backed securities, futures and forwards transactions are recorded in the consolidated financial statements on a trade date basis. Net Investment Income, Investment Gains (Losses), Net and Unrealized -------------------------------------------------------------------- Investment Gains (Losses) ------------------------- Net investment income and realized investment gains (losses), net (together "investment results") related to certain participating group annuity contracts which are passed through to the contractholders are offset by amounts reflected as interest credited to policyholders' account balances. Realized investment gains (losses) are determined by identification with the specific asset and are presented as a component of revenue. Changes in the valuation allowances are included in investment gains or losses. Realized and unrealized holding gains (losses) on trading securities are reflected in net investment income. Unrealized investment gains and losses on fixed maturities and equity securities available for sale held by the Company are accounted for as a separate component of accumulated comprehensive income, net of related deferred income taxes, amounts attributable to Wind-up Annuities, Closed Block policyholders dividend obligation and deferred policy acquisition costs ("DAC") related to universal life and investment-type products and participating traditional life contracts. Recognition of Insurance Income and Related Expenses ---------------------------------------------------- Premiums from universal life and investment-type contracts are reported as deposits to policyholders' account balances. Revenues from these contracts consist of amounts assessed during the period against policyholders' account balances for mortality charges, policy administration charges and surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policyholders' account balances. Premiums from participating and non-participating traditional life and annuity policies with life contingencies generally are recognized as income when due. Benefits and expenses are matched with such income so as to result in the recognition of profits over the life of the contracts. This match is accomplished by means of the provision for liabilities for future policy benefits and the deferral and subsequent amortization of policy acquisition costs. For contracts with a single premium or a limited number of premium payments due over a significantly shorter period than the total period over which benefits are provided, premiums are recorded as revenue when due with any excess profit deferred and recognized in income in a constant relationship to insurance in-force or, for annuities, the amount of expected future benefit payments. Premiums from individual health contracts are recognized as income over the period to which the premiums relate in proportion to the amount of insurance protection provided. Deferred Policy Acquisition Costs --------------------------------- Acquisition costs that vary with and are primarily related to the acquisition of new and renewal insurance business, including commissions, underwriting, agency and policy issue expenses, are deferred. DAC is subject to recoverability testing at the time of policy issue and loss recognition testing at the end of each accounting period. For universal life products and investment-type products, DAC is amortized over the expected total life of the contract group as a constant percentage of estimated gross profits arising principally from investment results, Separate Account fees, mortality and expense margins and surrender charges based on historical and anticipated future experience, updated at the end of each accounting period. The effect on the amortization of DAC of revisions to estimated gross profits is reflected in earnings in the period such estimated gross profits are revised. A decrease in expected gross profits would accelerate DAC amortization. Conversely, an increase in expected gross profits would slow DAC amortization. The F-15 effect on the DAC asset that would result from realization of unrealized gains (losses) is recognized with an offset to accumulated comprehensive income in consolidated shareholder's equity as of the balance sheet date. A significant assumption in the amortization of DAC on variable and interest-sensitive life insurance and variable annuities relates to projected future Separate Account performance. Management sets expected future gross profit assumptions related to Separate Account performance using a long-term view of expected average market returns by applying a reversion to the mean approach. In applying this approach to develop estimates of future returns, it is assumed that the market will return to an average gross long-term return estimate, developed with reference to historical long-term equity market performance and subject to assessment of the reasonableness of resulting estimates of future return assumptions. For purposes of making this reasonableness assessment, management has set limitations as to maximum and minimum future rate of return assumptions, as well as a limitation on the duration of use of these maximum or minimum rates of return. Currently, the average gross long-term annual return estimate is 9.0% (6.88% net of product weighted average Separate Account fees), and the gross maximum and minimum annual rate of return limitations are 15.0% (12.88% net of product weighted average Separate Account fees) and 0% (-2.12% net of product weighted average Separate Account fees), respectively. The maximum duration over which these rate limitations may be applied is 5 years. This approach will continue to be applied in future periods. If actual market returns continue at levels that would result in assuming future market returns of 15% for more than 5 years in order to reach the average gross long-term return estimate, the application of the 5 year maximum duration limitation would result in an acceleration of DAC amortization. Conversely, actual market returns resulting in assumed future market returns of 0% for more than 5 years would result in a required deceleration of DAC amortization. As of December 31, 2005, current projections of future average gross market returns assume a 3.5% return for 2006, which is within the maximum and minimum limitations, and assume a reversion to the mean of 9.0% after 5 quarters. In addition, projections of future mortality assumptions related to variable and interest-sensitive life products are based on a long-term average of actual experience. This assumption is updated quarterly to reflect recent experience as it emerges. Improvement of life mortality in future periods from that currently projected would result in future deceleration of DAC amortization. Conversely, deterioration of life mortality in future periods from that currently projected would result in future acceleration of DAC amortization. Generally, life mortality experience has been improving in recent years. Other significant assumptions underlying gross profit estimates relate to contract persistency and general account investment spread. For participating traditional life policies (substantially all of which are in the Closed Block), DAC is amortized over the expected total life of the contract group as a constant percentage based on the present value of the estimated gross margin amounts expected to be realized over the life of the contracts using the expected investment yield. At December 31, 2005, the average rate of assumed investment yields, excluding policy loans, was 6.8% grading to 6.3% over 10 years. Estimated gross margin includes anticipated premiums and investment results less claims and administrative expenses, changes in the net level premium reserve and expected annual policyholder dividends. The effect on the amortization of DAC of revisions to estimated gross margins is reflected in earnings in the period such estimated gross margins are revised. The effect on the DAC asset that would result from realization of unrealized gains (losses) is recognized with an offset to accumulated comprehensive income in consolidated shareholder's equity as of the balance sheet date. For non-participating traditional life policies, DAC is amortized in proportion to anticipated premiums. Assumptions as to anticipated premiums are estimated at the date of policy issue and are consistently applied during the life of the contracts. Deviations from estimated experience are reflected in earnings in the period such deviations occur. For these contracts, the amortization periods generally are for the total life of the policy. Policyholders' Account Balances and Future Policy Benefits ---------------------------------------------------------- Policyholders' account balances for universal life and investment-type contracts are equal to the policy account values. The policy account values represent an accumulation of gross premium payments plus credited interest less expense and mortality charges and withdrawals. AXA Equitable issues certain variable annuity products with a Guaranteed Minimum Death Benefit ("GMDB") feature. AXA Equitable also issues certain variable annuity products that contain a Guaranteed Minimum Income Benefit ("GMIB") feature which, if elected by the policyholder after a stipulated waiting period from contract issuance, guarantees a minimum lifetime annuity based on predetermined annuity purchase rates that may be in excess of what the contract account value can purchase at then-current annuity purchase rates. This minimum lifetime annuity is based F-16 on predetermined annuity purchase rates applied to a guaranteed minimum income benefit base. The risk associated with the GMDB and GMIB features is that a protracted under-performance of the financial markets could result in GMDB and GMIB benefits being higher than what accumulated policyholder account balances would support. Reserves for GMDB and GMIB obligations are calculated on the basis of actuarial assumptions related to projected benefits and related contract charges generally over the lives of the contracts using assumptions consistent with those used in estimating gross profits for purposes of amortizing DAC. The determination of this estimated liability is based on models which involve numerous estimates and subjective judgments, including those regarding expected market rates of return and volatility, contract surrender rates, mortality experience, and, for GMIB, GMIB election rates. Assumptions regarding Separate Account performance used for purposes of this calculation are set using a long-term view of expected average market returns by applying a reversion to the mean approach, consistent with that used for DAC amortization. There can be no assurance that ultimate actual experience will not differ from management's estimates. Reinsurance contracts covering GMIB exposure are considered derivatives under SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS No. 133"), and, therefore, are required to be reported in the balance sheet at their fair value. GMIB reinsurance fair values are reported in the consolidated balance sheets in Other assets. Changes in GMIB reinsurance fair values are reflected in Commissions, fees and other income in the consolidated statements of earnings. Since there is no readily available market for GMIB reinsurance contracts, the determination of their fair values is based on models which involve numerous estimates and subjective judgments including those regarding expected market rates of return and volatility, GMIB election rates, contract surrender rates and mortality experience. There can be no assurance that ultimate actual experience will not differ from management's estimates. For reinsurance contracts other than those covering GMIB exposure, reinsurance recoverable balances are calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities. For participating traditional life policies, future policy benefit liabilities are calculated using a net level premium method on the basis of actuarial assumptions equal to guaranteed mortality and dividend fund interest rates. The liability for annual dividends represents the accrual of annual dividends earned. Terminal dividends are accrued in proportion to gross margins over the life of the contract. For non-participating traditional life insurance policies, future policy benefit liabilities are estimated using a net level premium method on the basis of actuarial assumptions as to mortality, persistency and interest established at policy issue. Assumptions established at policy issue as to mortality and persistency are based on the Insurance Group's experience that, together with interest and expense assumptions, includes a margin for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for a product are insufficient to provide for expected future policy benefits and expenses for that product, DAC is written off and thereafter, if required, a premium deficiency reserve is established by a charge to earnings. Benefit liabilities for traditional annuities during the accumulation period are equal to accumulated contractholders' fund balances and, after annuitization, are equal to the present value of expected future payments. Interest rates used in establishing such liabilities range from 2.0% to 10.9% for life insurance liabilities and from 2.25% to 9.7% for annuity liabilities. Individual health benefit liabilities for active lives are estimated using the net level premium method and assumptions as to future morbidity, withdrawals and interest. Benefit liabilities for disabled lives are estimated using the present value of benefits method and experience assumptions as to claim terminations, expenses and interest. While management believes its disability income ("DI") reserves have been calculated on a reasonable basis and are adequate, there can be no assurance reserves will be sufficient to provide for future liabilities. Claim reserves and associated liabilities net of reinsurance ceded for individual DI and major medical policies were $91.2 million and $71.7 million at December 31, 2005 and 2004, respectively. At December 31, 2005 and 2004, respectively, $1,043.9 million and $1,081.5 million of DI reserves and associated liabilities were ceded through indemnity reinsurance agreements with a singular reinsurance group. Incurred benefits (benefits paid plus changes in claim reserves) and benefits paid for individual DI and major medical policies are summarized as follows: F-17
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) Incurred benefits related to current year.......... $ 35.6 $ 35.0 $ 33.8 Incurred benefits related to prior years........... 50.3 12.8 (2.8) ----------------- ----------------- ----------------- Total Incurred Benefits............................ $ 85.9 $ 47.8 $ 31.0 ================= ================= ================= Benefits paid related to current year.............. $ 14.8 $ 12.9 $ 12.1 Benefits paid related to prior years............... 44.7 33.1 34.9 ----------------- ----------------- ----------------- Total Benefits Paid................................ $ 59.5 $ 46.0 $ 47.0 ================= ================= =================
Policyholders' Dividends ------------------------ The amount of policyholders' dividends to be paid (including dividends on policies included in the Closed Block) is determined annually by AXA Equitable's board of directors. The aggregate amount of policyholders' dividends is related to actual interest, mortality, morbidity and expense experience for the year and judgment as to the appropriate level of statutory surplus to be retained by AXA Equitable. At December 31, 2005, participating policies, including those in the Closed Block, represent approximately 15.1% ($31.6 billion) of directly written life insurance in-force, net of amounts ceded. Separate Accounts ----------------- Generally, Separate Accounts established under New York State Insurance Law generally are not chargeable with liabilities that arise from any other business of the Insurance Group. Separate Accounts assets are subject to General Account claims only to the extent Separate Accounts assets exceed Separate Accounts liabilities. Assets and liabilities of the Separate Accounts represent the net deposits and accumulated net investment earnings less fees, held primarily for the benefit of contractholders, and for which the Insurance Group does not bear the investment risk. Separate Accounts' assets and liabilities are shown on separate lines in the consolidated balance sheets. Assets held in the Separate Accounts are carried at quoted market values or, where quoted values are not readily available, at estimated fair values as determined by the Insurance Group. The assets and liabilities of three Separate Accounts are presented and accounted for as General Account assets and liabilities due to the fact that not all of the investment performance in those Separate Accounts is passed through to policyholders. Two of those Separate Accounts were reclassified to the General Account in connection with the adoption of SOP 03-1 as of January 1, 2004. The investment results of Separate Accounts on which the Insurance Group does not bear the investment risk are reflected directly in Separate Accounts liabilities and are not reported in revenues in the consolidated statements of earnings. For 2005, 2004 and 2003, investment results of such Separate Accounts were gains (losses) of $3,409.5 million, $2,191.4 million and $(466.2) million, respectively. Deposits to Separate Accounts are reported as increases in Separate Accounts liabilities and are not reported in revenues. Mortality, policy administration and surrender charges on all policies including those funded by Separate Accounts are included in revenues. Recognition of Investment Management Revenues and Related Expenses ------------------------------------------------------------------ Commissions, fees and other income principally include Investment Management advisory and service fees. Investment Management advisory and services base fees, generally calculated as a percentage, referred to as "basis points", of assets under management for clients, are recorded as revenue as the related services are performed; they include brokerage transactions charges of Sanford C. Bernstein & Co., LLC ("SCB LLC"), a wholly owned subsidiary of AllianceBernstein, for certain retail, private client transactions and institutional investment client transactions. Certain investment advisory contracts provide for a performance-based fee in addition to or in lieu of a base fee that is calculated as either a percentage of absolute investment results or a percentage of the related investment results in excess of a stated benchmark over a specified period of time. Performance-based fees are recorded as revenue at the end of the measurement period. Institutional research services revenue consists of brokerage transaction charges received by SCB LLC and Sanford C. Bernstein Limited, a wholly owned subsidiary of AllianceBernstein, for in-depth research and other services provided to institutional investors. Brokerage transaction charges earned and related F-18 expenses are recorded on a trade date basis. Brokerage transaction charges earned and related expenses are recorded on a trade date basis. Distribution revenues and shareholder servicing fees are accrued as earned. Sales commissions paid to financial intermediaries in connection with the sale of shares of open-end AllianceBernstein mutual funds sold without a front-end sales charge are capitalized as deferred sales commissions and amortized over periods not exceeding five and one-half years, the periods of time during which deferred sales commissions are generally recovered from distribution services fees received from those funds and from contingent deferred sales charges ("CDSC") received from shareholders of those funds upon the redemption of their shares. CDSC cash recoveries are recorded as reductions in unamortized deferred sales commissions when received. At December 31, 2005 and 2004, respectively, net deferred sales commissions totaled $196.6 million and $254.5 million and are included within Other assets. The estimated amortization expense of deferred sales commission, based on December 31, 2005 net balance for each of the next five years is $84.9 million, $52.4 million, $34.3 million, $18.8 million and $5.5 million. AllianceBernstein's management tests the deferred sales commission asset for recoverability quarterly, or more often when events or changes in circumstances occur that could significantly increase the risk of impairment of the asset. AllianceBernstein's management determines recoverability by estimating undiscounted future cash flows to be realized from this asset, as compared to its recorded amount, as well as the estimated remaining life of the deferred sales commission asset over which undiscounted future cash flows are expected to be received. Undiscounted future cash flows consist of ongoing distribution services fees and CDSC. Distribution services fees are calculated as a percentage of average assets under management related to back-end load shares. CDSC is based on the lower of cost or current value, at the time of redemption, of back-end load shares redeemed and the point at which redeemed during the applicable minimum holding period under the mutual fund distribution system. Significant assumptions utilized to estimate future average assets under management and undiscounted future cash flows from back-end load shares include expected future market levels and redemption rates. Market assumptions are selected using a long-term view of expected average market returns based on historical returns of broad market indices. Future redemption rate assumptions are determined by reference to actual redemption experience over the one-year, three-year, and five-year periods ended December 31, 2005. These assumptions are updated periodically. Estimates of undiscounted future cash flows and the remaining life of the deferred sales commission asset are made from these assumptions and the aggregate undiscounted cash flows are compared to the recorded value of the deferred sales commission asset. AllianceBernstein's management considers the results of these analyses performed at various dates. If AllianceBernstein's management determines in the future that the deferred sales commission asset is not recoverable, an impairment condition would exist and a loss would be measured as the amount by which the recorded amount of the asset exceeds its estimated fair value. Estimated fair value is determined using AllianceBernstein's management's best estimate of future cash flows discounted to a present value amount. Other Accounting Policies ------------------------- In accordance with SEC regulations, securities with a fair value of $1.72 billion and $1.49 billion have been segregated in a special reserve bank custody account at December 31, 2005 and 2004, respectively for the exclusive benefit of securities broker-dealer or brokerage customers under Rule 15c3-3 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Goodwill represents the excess of the purchase price over the fair value of identifiable assets of acquired companies, less accumulated amortization and relates principally to the Bernstein acquisition and purchases of AllianceBernstein units. Goodwill is tested annually for impairment. Goodwill, less accumulated amortization related to the Bernstein acquisition and purchases of AllianceBernstein Units totaled $3.6 billion at December 31, 2005 and 2004, respectively. Intangible assets related to the Bernstein acquisition and purchases of AllianceBernstein Units include costs assigned to contracts of businesses acquired. These costs continue to be amortized on a straight-line basis over estimated useful lives of twenty years. The gross carrying amount of AllianceBernstein related intangible assets were $564.1 million at December 31, 2005 and 2004, respectively and the accumulated amortization of these intangible assets were $208.5 million and $185.0 million at December 31, 2005, 2004 and 2003, respectively. Amortization expense related to the AllianceBernstein intangible assets totaled $23.5 million, $22.9 million and $21.9 million for 2005, 2004 and 2003, respectively. Capitalized internal-use software is amortized on a straight-line basis over the estimated useful life of the software and evaluated for impairment each reporting period. F-19 AXA Financial and certain of its consolidated subsidiaries, including the Company, file a consolidated Federal income tax return. Current Federal income taxes are charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable operations for the current year. Deferred income tax assets and liabilities are recognized based on the difference between financial statement carrying amounts and income tax bases of assets and liabilities using enacted income tax rates and laws. Minority interest subject to redemption rights represents the remaining 16.3 million of private AllianceBernstein Units issued to former Bernstein shareholders in connection with AllianceBernstein's acquisition of Bernstein. AXA Financial agreed to provide liquidity to these former Bernstein shareholders after a two-year lockout period that ended October 2002. The Company acquired 10.7 million of the former Bernstein shareholders' AllianceBernstein Units in 2004. The outstanding 16.3 million AllianceBernstein Units may be sold to AXA Financial at the prevailing market price over the remaining four years ending in 2009. Generally, not more than 20% of the original AllianceBernstein Units issued to the former Bernstein shareholders may be put to AXA Financial in any one annual period. F-20 3) INVESTMENTS The following tables provide additional information relating to fixed maturities and equity securities:
GROSS GROSS AMORTIZED UNREALIZED UNREALIZED ESTIMATED COST GAINS LOSSES FAIR VALUE --------------- ----------------- ----------------- ---------------- (IN MILLIONS) DECEMBER 31, 2005 ----------------- Fixed Maturities: Available for Sale: Corporate..................... $ 23,222.8 $ 977.4 $ 190.7 $ 24,009.5 Mortgage-backed............... 2,386.3 8.3 39.3 2,355.3 U.S. Treasury, government and agency securities....... 1,448.7 37.5 7.6 1,478.6 States and political subdivisions................ 193.4 19.1 .3 212.2 Foreign governments........... 238.2 40.9 .1 279.0 Redeemable preferred stock.... 1,605.5 104.9 10.2 1,700.2 ----------------- ----------------- ----------------- ---------------- Total Available for Sale.... $ 29,094.9 $ 1,188.1 $ 248.2 $ 30,034.8 ================= ================= ================= ================ Equity Securities: Available for sale.............. $ 45.7 $ 2.1 $ .4 $ 47.4 Trading securities.............. .3 .9 .1 1.1 ----------------- ----------------- ----------------- ---------------- Total Equity Securities........... $ 46.0 $ 3.0 $ .5 $ 48.5 ================= ================= ================= ================ December 31, 2004 ----------------- Fixed Maturities: Available for Sale: Corporate..................... $ 22,285.8 $ 1,684.3 $ 45.3 $ 23,924.8 Mortgage-backed............... 3,472.4 47.7 9.7 3,510.4 U.S. Treasury, government and agency securities....... 964.1 54.9 1.3 1,017.7 States and political subdivisions................ 187.1 20.6 .8 206.9 Foreign governments........... 245.1 47.2 .1 292.2 Redeemable preferred stock.... 1,623.1 151.4 4.2 1,770.3 ----------------- ----------------- ----------------- ---------------- Total Available for Sale.... $ 28,777.6 $ 2,006.1 $ 61.4 $ 30,722.3 ================= ================= ================= ================ Equity Securities: Available for sale.............. $ 1.0 $ 1.2 $ .1 $ 2.1 Trading securities.............. .4 1.0 .2 1.2 ----------------- ----------------- ----------------- ---------------- Total Equity Securities........... $ 1.4 $ 2.2 $ .3 $ 3.3 ================= ================= ================= ================
For publicly traded fixed maturities and equity securities, estimated fair value is determined using quoted market prices. For fixed maturities without a readily ascertainable market value, the Company determines estimated fair values using a discounted cash flow approach, including provisions for credit risk, generally based on the assumption such securities will be held to maturity. Such estimated fair values do not necessarily represent the values for which these securities could have been sold at the dates of the consolidated balance sheets. At December 31, 2005 and 2004, securities without a readily ascertainable market value having an amortized cost of $4,307.8 million and $4,138.7 million, respectively, had estimated fair values of $4,492.4 million and $4,446.0 million, respectively. F-21 The contractual maturity of bonds at December 31, 2005 is shown below:
AVAILABLE FOR SALE ------------------------------------- AMORTIZED ESTIMATED COST FAIR VALUE ----------------- ----------------- (IN MILLIONS) Due in one year or less................................................ $ 1,285.2 $ 1,300.1 Due in years two through five.......................................... 4,632.4 4,805.1 Due in years six through ten........................................... 11,447.8 11,739.0 Due after ten years.................................................... 7,737.7 8,135.1 Mortgage-backed securities............................................. 2,386.3 2,355.3 ----------------- ----------------- Total.................................................................. $ 27,489.4 $ 28,334.6 ================= =================
Bonds not due at a single maturity date have been included in the above table in the year of final maturity. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The Company's management, with the assistance of its investment advisors, monitors the investment performance of its portfolio. This review process includes a quarterly review of certain assets by the Insurance Group's Investments Under Surveillance Committee that evaluates whether any investments are other than temporarily impaired. Based on the analysis, a determination is made as to the ability of the issuer to service its debt obligations on an ongoing basis. If this ability is deemed to be other than temporarily impaired, then the appropriate provisions are taken. The following table discloses fixed maturities (1,797 issues) that have been in a continuous unrealized loss position for less than a twelve month period and greater than a twelve month period as of December 31, 2005:
LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL ------------------------------- ---------------------------- ---------------------------- GROSS GROSS GROSS ESTIMATED UNREALIZED ESTIMATED UNREALIZED ESTIMATED UNREALIZED FAIR VALUE LOSSES FAIR VALUE LOSSES FAIR VALUE LOSSES --------------- -------------- ------------- ------------- ------------- ------------- (IN MILLIONS) Fixed Maturities: Corporate............. $ 6,386.3 $ 146.9 $ 815.4 $ 43.8 $ 7,201.7 $ 190.7 Mortgage-backed....... 1,735.9 27.4 299.3 11.9 2,035.2 39.3 U.S. Treasury, government and agency securities... 676.4 6.2 61.9 1.4 738.3 7.6 States and political subdivisions........ 22.7 .3 - - 22.7 .3 Foreign governments... 1.4 - 5.8 .1 7.2 .1 Redeemable preferred stock..... 396.5 8.9 16.9 1.3 413.4 10.2 -------------- --------------- -------------- --------------- -------------- --------------- Total Temporarily Impaired Securities .. $ 9,219.2 $ 189.7 $ 1,199.3 $ 58.5 $ 10,418.5 $ 248.2 ============== =============== ============== =============== ============== ===============
The Insurance Group's fixed maturity investment portfolio includes corporate high yield securities consisting primarily of public high yield bonds. These corporate high yield securities are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or National Association of Insurance Commissioners ("NAIC") designation of 3 (medium grade), 4 or 5 (below investment grade) or 6 (in or near default). At December 31, 2005, approximately $738.7 million or 2.5% of the $29,094.9 million aggregate amortized cost of fixed maturities held by the Company was considered to be other than investment grade. At December 31, 2005, the carrying value of fixed maturities which are non-income producing for the twelve months preceding the consolidated balance sheet date was $4.0 million. F-22 The Insurance Group holds equity in limited partnership interests and other equity method investments. The carrying values at December 31, 2005 and 2004 were $950.7 million and $891.0 million, respectively. The payment terms of mortgage loans on real estate may from time to time be restructured or modified. The investment in restructured mortgage loans on real estate, based on amortized cost, amounted to zero and $17.6 million at December 31, 2005 and 2004, respectively. Gross interest income on these loans included in net investment income aggregated $0.7 million, $6.9 million and $7.8 million in 2005, 2004 and 2003, respectively. Gross interest income on restructured mortgage loans on real estate that would have been recorded in accordance with the original terms of such loans amounted to $0.8 million, $8.5 million and $10.0 million in 2005, 2004 and 2003, respectively. Impaired mortgage loans along with the related investment valuation allowances for losses follow:
DECEMBER 31, ---------------------------------------- 2005 2004 ------------------ ------------------- (IN MILLIONS) Impaired mortgage loans with investment valuation allowances....... $ 78.3 $ 89.4 Impaired mortgage loans without investment valuation allowances.... 4.5 10.7 ------------------ ------------------- Recorded investment in impaired mortgage loans..................... 82.8 100.1 Investment valuation allowances.................................... (11.8) (11.3) ------------------ ------------------- Net Impaired Mortgage Loans........................................ $ 71.0 $ 88.8 ================== ===================
During 2005, 2004 and 2003, respectively, the Company's average recorded investment in impaired mortgage loans was $91.2 million, $148.3 million and $180.9 million. Interest income recognized on these impaired mortgage loans totaled $8.9 million, $11.4 million and $12.3 million for 2005, 2004 and 2003, respectively. Mortgage loans on real estate are placed on nonaccrual status once management believes the collection of accrued interest is doubtful. Once mortgage loans on real estate are classified as nonaccrual loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan on real estate has been restructured to where the collection of interest is considered likely. At December 31, 2005 and 2004, respectively, the carrying value of mortgage loans on real estate that had been classified as nonaccrual loans was $71.1 million and $79.2 million. The Insurance Group's investment in equity real estate is through direct ownership and through investments in real estate joint ventures. At December 31, 2005 and 2004, there was no equity real estate held-for-sale. For 2003, real estate of $2.8 million was acquired in satisfaction of debt; none was acquired in either 2005 or 2004. At December 31, 2005 and 2004, the Company owned $217.8 million and $218.8 million, respectively, of real estate acquired in satisfaction of debt of which zero and $2.2 million, respectively, are held as real estate joint ventures. Accumulated depreciation on real estate was $227.2 million and $207.5 million at December 31, 2005 and 2004, respectively. Depreciation expense on real estate totaled $22.6 million, $20.8 million and $38.8 million for 2005, 2004 and 2003, respectively. F-23 Investment valuation allowances for mortgage loans and equity real estate and changes thereto follow:
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) Balances, beginning of year........................ $ 11.3 $ 20.5 $ 55.0 Additions charged to income........................ 3.6 3.9 12.2 Deductions for writedowns and asset dispositions............................... (3.1) (13.1) (15.2) Deduction for transfer of real estate held-for-sale to real estate held for the production of income. - - (31.5) ----------------- ----------------- ----------------- Balances, End of Year.............................. $ 11.8 $ 11.3 $ 20.5 ================= ================= ================= Balances, end of year comprise: Mortgage loans on real estate.................... $ 11.8 $ 11.3 $ 18.8 Equity real estate............................... - - 1.7 ----------------- ----------------- ----------------- Total.............................................. $ 11.8 $ 11.3 $ 20.5 ================= ================= =================
4) EQUITY METHOD INVESTMENTS Included in equity real estate or other equity investments, as appropriate, is the Company's interest in real estate joint ventures, limited partnership interests and investment companies accounted for under the equity method with a total carrying value of $1,070.4 million and $1,008.2 million, respectively, at December 31, 2005 and 2004. The Company's total equity in net earnings (losses) for these real estate joint ventures and limited partnership interests was $157.2 million, $66.2 million and $(4.3) million, respectively, for 2005, 2004 and 2003. Summarized below is the combined financial information only for those real estate joint ventures and for those limited partnership interests accounted for under the equity method in which the Company has an investment of $10.0 million or greater and an equity interest of 10% or greater (3 and 6 individual ventures at December 31, 2005 and 2004, respectively) and the Company's carrying value and equity in net earnings for those real estate joint ventures and limited partnership interests:
DECEMBER 31, ------------------------------------- 2005 2004 ----------------- ----------------- (IN MILLIONS) BALANCE SHEETS Investments in real estate, at depreciated cost........................ $ 527.4 $ 537.1 Investments in securities, generally at estimated fair value........... 118.4 162.4 Cash and cash equivalents.............................................. 27.5 13.5 Other assets........................................................... 18.6 23.0 ----------------- ----------------- Total Assets........................................................... $ 691.9 $ 736.0 ================= ================= Borrowed funds - third party........................................... $ 282.7 $ 254.3 Other liabilities...................................................... 12.4 17.4 ----------------- ----------------- Total liabilities...................................................... 295.1 271.7 ----------------- ----------------- Partners' capital...................................................... 396.8 464.3 ----------------- ----------------- Total Liabilities and Partners' Capital................................ $ 691.9 $ 736.0 ================= ================= The Company's Carrying Value in These Entities Included Above.......... $ 135.6 $ 168.8 ================= =================
F-24
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) STATEMENTS OF EARNINGS Revenues of real estate joint ventures............. $ 98.2 $ 95.2 $ 95.6 Net revenues of other limited partnership interests...................................... 6.3 19.8 26.0 Interest expense - third party..................... (18.2) (16.9) (18.0) Other expenses..................................... (62.2) (64.0) (61.7) ----------------- ----------------- ----------------- Net Earnings....................................... $ 24.1 $ 34.1 $ 41.9 ================= ================= ================= The Company's Equity in Net Earnings of These Entities Included Above.......................... $ 11.6 $ 11.0 $ 5.0 ================= ================= =================
5) NET INVESTMENT INCOME AND INVESTMENT GAINS (LOSSES) The sources of net investment income follow:
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) Fixed maturities................................... $ 1,858.7 $ 1,879.5 $ 1,792.6 Mortgage loans on real estate...................... 238.2 249.6 279.5 Equity real estate................................. 126.4 124.8 136.9 Other equity investments........................... 73.0 78.4 49.3 Policy loans....................................... 248.8 251.0 260.1 Short Term Investments 123.7 61.5 53.3 Other investment income............................ 37.0 30.5 13.5 ----------------- ----------------- ----------------- Gross investment income.......................... 2,705.8 2,675.3 2,585.2 Investment expenses.............................. (213.0) (173.9) (198.3) ----------------- ----------------- ----------------- Net Investment Income.............................. $ 2,492.8 $ 2,501.4 $ 2,386.9 ================= ================= =================
Investment gains (losses) by investment category, including changes in the valuation allowances, follow:
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) Fixed maturities................................... $ 11.1 $ 26.3 $ (100.7) Mortgage loans on real estate...................... (2.2) .2 1.3 Equity real estate................................. 3.9 11.6 26.8 Other equity investments........................... 30.7 24.4 2.0 Other.............................................. 11.9 2.5 8.3 ----------------- ----------------- ----------------- Investment Gains (Losses), Net................... $ 55.4 $ 65.0 $ (62.3) ================= ================= =================
Writedowns of fixed maturities amounted to $31.2 million, $36.4 million and $193.2 million for 2005, 2004 and 2003, respectively. Writedowns of mortgage loans on real estate and equity real estate amounted to $1.7 million and zero, respectively, for 2005, $10.3 million and zero, respectively, for 2004 and $5.2 million and zero, respectively, for 2003. For 2005, 2004 and 2003, respectively, proceeds received on sales of fixed maturities classified as available for sale amounted to $2,220.0 million, $2,908.3 million and $4,773.5 million. Gross gains of $53.2 million, $47.7 million and $105.1 million and gross losses of $31.1 million, $9.7 million and $39.5 million, respectively, were realized on these sales. The change in unrealized investment gains (losses) related to fixed maturities classified as available for sale for 2005, 2004 and 2003 amounted to $(1,004.8) million, $0.8 million and $416.8 million, respectively. F-25 In 2005, 2004 and 2003, respectively, net unrealized holding gains (losses) on trading account equity securities of $6.0 million, $9.7 million and $2.1 million were included in net investment income in the consolidated statements of earnings. These trading securities had a carrying value of $120.0 million and $117.4 million and costs of $103.7 million and $107.2 million at December 31, 2005 and 2004, respectively. For 2005, 2004 and 2003, investment results passed through to certain participating group annuity contracts as interest credited to policyholders' account balances amounted to $68.6 million, $70.4 million and $76.5 million, respectively. Net unrealized investment gains (losses) included in the consolidated balance sheets as a component of accumulated other comprehensive income and the changes for the corresponding years, including Wind-up Annuities on a line-by-line basis, follow:
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) Balance, beginning of year......................... $ 874.1 $ 892.8 $ 681.1 Changes in unrealized investment gains (losses).... (1,008.1) (12.8) 440.8 Changes in unrealized investment (gains) losses attributable to: Participating group annuity contracts, Closed Block policyholder dividend obligation and other........................ 186.3 (1.5) (53.0) DAC............................................ 146.2 (2.5) (65.7) Deferred income taxes.......................... 233.8 (1.9) (110.4) ----------------- ----------------- ----------------- Balance, End of Year............................... $ 432.3 $ 874.1 $ 892.8 ================= ================= =================
2005 2004 2003 ----------------- ------------------- ----------------- (IN MILLIONS) Balance, end of year comprises: Unrealized investment gains (losses) on: Fixed maturities............................... $ 966.5 $ 2,003.2 $ 2,015.7 Other equity investments....................... 1.7 1.2 1.5 Other.......................................... - (28.1) (28.1) ----------------- ------------------- ----------------- Total........................................ 968.2 1,976.3 1,989.1 Amounts of unrealized investment (gains) losses attributable to: Participating group annuity contracts, Closed Block policyholder dividend obligation and other....................... (89.4) (275.7) (274.2) DAC.......................................... (196.0) (342.2) (339.7) Deferred income taxes........................ (250.5) (484.3) (482.4) ----------------- ------------------- ----------------- Total.............................................. $ 432.3 $ 874.1 $ 892.8 ================= =================== =================
Changes in unrealized gains (losses) reflect changes in fair value of only those fixed maturities and equity securities classified as available for sale and do not reflect any changes in fair value of policyholders' account balances and future policy benefits. 6) ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated other comprehensive income represents cumulative gains and losses on items that are not reflected in earnings. The balances for the past three years follow:
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) Unrealized gains on investments.................... $ 432.3 $ 874.1 $ 892.8 ----------------- ----------------- ----------------- Total Accumulated Other Comprehensive Income............................. $ 432.3 $ 874.1 $ 892.8 ================= ================= =================
F-26 The components of other comprehensive income for the past three years follow:
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) Net unrealized gains (losses) on investments: Net unrealized gains arising during the period..................................... $ (966.2) $ 69.4 $ 416.6 (Gains) losses reclassified into net earnings during the period.............................. (41.9) (82.2) 24.2 ----------------- ----------------- ----------------- Net unrealized gains on investments................ (1,008.1) (12.8) 440.8 Adjustments for policyholders liabilities, DAC and deferred income taxes.................. 566.3 (5.9) (229.1) ----------------- ----------------- ----------------- Change in unrealized (losses) gains, net of adjustments.................................... (441.8) (18.7) 211.7 ----------------- ----------------- ----------------- Total Other Comprehensive (Loss) Income............ $ (441.8) $ (18.7) $ 211.7 ================= ================= =================
7) CLOSED BLOCK The excess of Closed Block liabilities over Closed Block assets (adjusted to exclude the impact of related amounts in accumulated other comprehensive income) represents the expected maximum future post-tax earnings from the Closed Block that would be recognized in income from continuing operations over the period the policies and contracts in the Closed Block remain in force. As of January 1, 2001, the Company has developed an actuarial calculation of the expected timing of the Closed Block earnings. If the actual cumulative earnings from the Closed Block are greater than the expected cumulative earnings, only the expected earnings will be recognized in net income. Actual cumulative earnings in excess of expected cumulative earnings at any point in time are recorded as a policyholder dividend obligation because they will ultimately be paid to Closed Block policyholders as an additional policyholder dividend unless offset by future performance that is less favorable than originally expected. If a policyholder dividend obligation has been previously established and the actual Closed Block earnings in a subsequent period are less than the expected earnings for that period, the policyholder dividend obligation would be reduced (but not below zero). If, over the period the policies and contracts in the Closed Block remain in force, the actual cumulative earnings of the Closed Block are less than the expected cumulative earnings, only actual earnings would be recognized in income from continuing operations. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside the Closed Block. Many expenses related to Closed Block operations, including amortization of DAC, are charged to operations outside of the Closed Block; accordingly, net revenues of the Closed Block do not represent the actual profitability of the Closed Block operations. Operating costs and expenses outside of the Closed Block are, therefore, disproportionate to the business outside of the Closed Block. F-27 Summarized financial information for the Closed Block follows:
DECEMBER 31, December 31, 2005 2004 ----------------- ----------------- (IN MILLIONS) CLOSED BLOCK LIABILITIES: Future policy benefits, policyholders' account balances and other.... $ 8,866.1 $ 8,911.5 Policyholder dividend obligation..................................... 73.7 264.3 Other liabilities.................................................... 28.6 25.9 ----------------- ----------------- Total Closed Block liabilities....................................... 8,968.4 9,201.7 ----------------- ----------------- ASSETS DESIGNATED TO THE CLOSED BLOCK: Fixed maturities, available for sale, at estimated fair value (amortized cost of $5,761.5 and $5,488.6).......................... 5,908.7 5,823.2 Mortgage loans on real estate........................................ 930.3 1,098.8 Policy loans......................................................... 1,284.4 1,322.5 Cash and other invested assets....................................... 56.2 37.1 Other assets......................................................... 304.4 348.7 ----------------- ----------------- Total assets designated to the Closed Block.......................... 8,484.0 8,630.3 ----------------- ----------------- Excess of Closed Block liabilities over assets designated to the Closed Block.................................................. 484.4 571.4 Amounts included in accumulated other comprehensive income: Net unrealized investment gains, net of deferred income tax expense of $25.7 and $24.6 and policyholder dividend obligation of $73.7 and $264.3.................................. 47.8 45.7 ----------------- ----------------- Maximum Future Earnings To Be Recognized From Closed Block Assets and Liabilities............................................ $ 532.2 $ 617.1 ================= =================
Closed Block revenues and expenses follow:
2005 2004 2003 ---------------- ----------------- -------------------- (IN MILLIONS) REVENUES: Premiums and other income............................ $ 449.3 $ 471.0 $ 508.5 Investment income (net of investment expenses of $0, $0.3, and $2.4)................... 525.9 554.8 559.2 Investment gains (losses), net....................... 1.2 18.6 (35.7) ---------------- ----------------- -------------------- Total revenues....................................... 976.4 1,044.4 1,032.0 ---------------- ----------------- -------------------- BENEFITS AND OTHER DEDUCTIONS: Policyholders' benefits and dividends................ 842.5 883.8 924.5 Other operating costs and expenses................... 3.4 3.5 4.0 ---------------- ----------------- -------------------- Total benefits and other deductions.................. 845.9 887.3 928.5 ---------------- ----------------- -------------------- Net revenues before income taxes..................... 130.5 157.1 103.5 Income tax expense................................... (45.6) (56.4) (37.5) ---------------- ----------------- -------------------- Net Revenues......................................... $ 84.9 $ 100.7 $ 66.0 ================ ================= ====================
F-28 Reconciliation of the policyholder dividend obligation follows:
DECEMBER 31, ------------------------------------- 2005 2004 ----------------- ----------------- (IN MILLIONS) Balance at beginning of year.......................................... $ 264.3 $ 242.1 Unrealized investment (losses) gains................................... (190.6) 22.2 ----------------- ----------------- Balance at End of Year ................................................ $ 73.7 $ 264.3 ================= =================
Impaired mortgage loans along with the related investment valuation allowances follow:
DECEMBER 31, ------------------------------------- 2005 2004 ----------------- ----------------- (IN MILLIONS) Impaired mortgage loans with investment valuation allowances........... $ 59.1 $ 59.5 Impaired mortgage loans without investment valuation allowances........ 4.0 2.3 ----------------- ----------------- Recorded investment in impaired mortgage loans......................... 63.1 61.8 Investment valuation allowances........................................ (7.1) (4.2) ----------------- ----------------- Net Impaired Mortgage Loans............................................ $ 56.0 $ 57.6 ================= =================
During 2005, 2004 and 2003, the Closed Block's average recorded investment in impaired mortgage loans was $59.9 million, $64.2 million and $51.9 million, respectively. Interest income recognized on these impaired mortgage loans totaled $4.1 million, $4.7 million and $2.7 million for 2005, 2004 and 2003, respectively. Valuation allowances amounted to $7.1 million and $4.0 million on mortgage loans on real estate at December 31, 2005 and 2004, respectively. Writedowns of fixed maturities amounted to $7.7 million, $10.8 million and $37.8 million for 2005, 2004 and 2003, respectively. 8) WIND-UP ANNUITIES Summarized financial information for Wind-up Annuities follows:
DECEMBER 31, -------------------------------------- 2005 2004 ---------------- ----------------- (IN MILLIONS) BALANCE SHEETS Fixed maturities, available for sale, at estimated fair value (amortized cost of $796.9 and $643.6).............................. $ 823.5 $ 702.1 Equity real estate................................................... 197.5 190.1 Mortgage loans on real estate........................................ 6.7 21.4 Other invested assets................................................ 3.2 4.7 ---------------- ----------------- Total investments.................................................. 1,030.9 918.3 Cash and cash equivalents............................................ - 150.2 Other assets......................................................... 13.6 33.3 ---------------- ----------------- Total Assets......................................................... $ 1,044.5 $ 1,101.8 ================ ================= Policyholders liabilities............................................ $ 817.2 $ 844.6 Allowance for future losses.......................................... 60.1 132.7 Other liabilities.................................................... 167.2 124.5 ---------------- ----------------- Total Liabilities.................................................... $ 1,044.5 $ 1,101.8 ================ =================
F-29
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) STATEMENTS OF EARNINGS Investment income (net of investment expenses of $18.4, $17.2 and $21.0).............. $ 70.0 $ 68.5 $ 70.6 Investment (losses) gains, net..................... (.3) 3.6 5.4 ----------------- ----------------- ----------------- Total revenues..................................... 69.7 72.1 76.0 ----------------- ----------------- ----------------- Benefits and other deductions...................... 87.1 (99.4) 89.4 (Losses charged) earnings credited to allowance for future losses................................ (17.4) (27.3) (13.4) ----------------- ----------------- ----------------- Pre-tax loss from operations....................... - - - Pre-tax earnings from releasing the allowance for future losses................................ 23.2 12.0 5.2 Income tax expense................................. (8.0) (4.1) (1.8) ----------------- ----------------- ----------------- Earnings from Other Discontinued Operations.......................... $ 15.2 $ 7.9 $ 3.4 ================= ================= =================
The Company's quarterly process for evaluating the allowance for future losses applies the current period's results of Wind-up Annuities against the allowance, re-estimates future losses and adjusts the allowance, if appropriate. Additionally, as part of the Company's annual planning process, investment and benefit cash flow projections are prepared. These updated assumptions and estimates resulted in a release of allowance in each of the three years presented. During 2005, 2004 and 2003, Wind-up Annuities' average recorded investment in impaired mortgage loans was zero, $8.4 million and $16.2 million, respectively. Interest income recognized on these impaired mortgage loans totaled zero, $1.0 million and $1.3 million for 2005, 2004 and 2003, respectively. 9) GMDB, GMIB AND NO LAPSE GUARANTEE FEATURES A) Variable Annuity Contracts - GMDB and GMIB ------------------------------------------ The Company has certain variable annuity contracts with GMDB and GMIB features in-force that guarantee one of the following: o Return of Premium: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals); o Ratchet: the benefit is the greatest of current account value, premiums paid (adjusted for withdrawals), or the highest account value on any anniversary up to contractually specified ages (adjusted for withdrawals); o Roll-Up: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals) accumulated at contractually specified interest rates up to specified ages; or o Combo: the benefit is the greater of the ratchet benefit or the roll-up benefit. The following table summarizes the GMDB and GMIB liabilities, before reinsurance ceded, reflected in the General Account in future policy benefits and other policyholders liabilities in 2005: F-30
GMDB GMIB TOTAL ----------------- ----------------- ----------------- (IN MILLIONS) Balance at January 1, 2003......................... $ 128.4 $ 117.5 $ 245.9 Paid guarantee benefits.......................... (65.6) - (65.6) Other changes in reserve......................... 6.5 (31.9) (25.4) ----------------- ----------------- ----------------- Balance at December 31, 2003....................... 69.3 85.6 154.9 Paid guarantee benefits.......................... (46.8) - (46.8) Other changes in reserve......................... 45.1 32.0 77.1 ----------------- ----------------- ----------------- Balance at December 31, 2004....................... 67.6 117.6 185.2 Paid guarantee benefits.......................... (39.6) (2.2) (41.8) Other changes in reserve......................... 87.2 58.2 145.4 ----------------- ----------------- ----------------- Balance at December 31, 2005....................... $ 115.2 $ 173.6 $ 288.8 ================= ================= =================
Related GMDB reinsurance ceded amounts were:
GMDB ----------------- Balance at January 1, 2003......................... $ 21.5 Paid guarantee benefits.......................... (18.5) Other changes in reserve......................... 14.2 ----------------- Balance at December 31, 2003....................... 17.2 Paid guarantee benefits.......................... (12.9) Other changes in reserve......................... 6.0 ----------------- Balance at December 31, 2004....................... 10.3 Paid guarantee benefits.......................... (12.1) Other changes in reserve......................... 24.5 ----------------- Balance at December 31, 2005....................... $ 22.7 =================
The GMIB reinsurance contracts are considered derivatives and are reported at fair value; see Note 16 of Notes to Consolidated Financial Statements. The December 31, 2005 values for those variable annuity contracts with GMDB and GMIB features currently in-force are presented in the following table. For contracts with the GMDB feature, the net amount at risk in the event of death is the amount by which the GMDB benefits exceed related account values. For contracts with the GMIB feature, the net amount at risk in the event of annuitization is the amount by which the present value of the GMIB benefits exceeds related account values, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB guarantees may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive: F-31
RETURN OF PREMIUM RATCHET ROLL-UP COMBO TOTAL -------------- ------------- -------------- ------------- --------------- (DOLLARS IN MILLIONS) GMDB: ----- Account values invested in: General Account.................. $ 11,773 $ 239 $ 120 $ 553 $ 12,685 Separate Accounts................ $ 21,028 $ 6,931 $ 7,802 $ 15,383 $ 51,144 Net amount at risk, gross........... $ 574 $ 455 $ 1,800 $ 56 $ 2,885 Net amount at risk, net of amounts reinsured......................... $ 573 $ 308 $ 1,091 $ 56 $ 2,028 Average attained age of contractholders................... 49.5 60.6 63.4 60.8 52.3 Percentage of contractholders over age 70....................... 7.4% 22.2% 30.9% 21.0% 11.3% Range of contractually specified interest rates................... N/A N/A 3% - 6% 3% - 6% GMIB: ----- Account values invested in: General Account.................. N/A N/A $ - $ 775 $ 775 Separate Accounts................ N/A N/A $ 5,512 $ 21,165 $ 26,677 Net amount at risk, gross........... N/A N/A $ 389 $ - $ 389 Net amount at risk, net of amounts reinsured......................... N/A N/A $ 98 $ - $ 98 Weighted average years remaining until annuitization............... N/A N/A 2.9 8.8 7.3 Range of contractually specified interest rates.................... N/A N/A 3% - 6% 3% - 6%
B) Separate Account Investments by Investment Category Underlying GMDB ------------------------------------------------------------------- and GMIB Features ----------------- The total account values of variable annuity contracts with GMDB and GMIB features include amounts allocated to the guaranteed interest option which is part of the General Account and variable investment options which invest through Separate Accounts in variable insurance trusts. The following table presents the aggregate fair value of assets, by major investment category, held by Separate Accounts that support variable annuity contracts with GMDB and GMIB benefits and guarantees. The investment performance of the assets impacts the related account values and, consequently, the net amount of risk associated with the GMDB and GMIB benefits and guarantees. Since variable annuity contracts with GMDB benefits and guarantees may also offer GMIB benefits and guarantees in each contract, the GMDB and GMIB amounts listed are not mutually exclusive: F-32 INVESTMENT IN VARIABLE INSURANCE TRUST MUTUAL FUNDS
DECEMBER 31, December 31, 2005 2004 ---------------- ------------------ (IN MILLIONS) GMDB: Equity............................................................... $ 35,857 $ 32,055 Fixed income......................................................... 4,353 4,190 Balanced............................................................. 9,121 5,337 Other................................................................ 1,813 1,551 ---------------- ------------------ Total................................................................ $ 51,144 $ 43,133 ================ ================== GMIB: Equity............................................................... $ 17,540 $ 14,325 Fixed income......................................................... 2,608 2,425 Balanced............................................................. 5,849 2,768 Other................................................................ 680 565 ---------------- ------------------ Total................................................................ $ 26,677 $ 20,083 ================ ==================
C) Hedging Programs for GMDB and GMIB Features ------------------------------------------- In 2003, the Company initiated a program intended to hedge certain risks associated with the GMDB feature of the Accumulator(R) series of variable annuity products sold beginning April 2002. In 2004, the program was expanded to include hedging for certain risks associated with the GMIB feature of the Accumulator(R) series of variable annuity products sold beginning 2004. This program currently utilizes exchange-traded futures contracts that are dynamically managed in an effort to reduce the economic impact of unfavorable changes in GMDB and GMIB exposures attributable to movements in the equity and fixed income markets. At December 31, 2005, the total account value and net amount at risk of the hedged Accumulator(R) series of variable annuity contracts were $29,290 million and $71 million, respectively, with the GMDB feature and $14,164 million and zero, respectively, with the GMIB feature. Although these programs are designed to provide economic protection against the impact adverse market conditions may have with respect to GMDB and GMIB guarantees, they do not qualify for hedge accounting treatment under SFAS No. 133. Therefore, SFAS No. 133 requires gains or losses on the futures contracts used in these programs, including current period changes in fair value, to be recognized in investment income in the period in which they occur, and may contribute to earnings volatility. D) Variable and Interest-Sensitive Life Insurance Policies - No Lapse ------------------------------------------------------------------ Guarantee --------- The no lapse guarantee feature contained in variable and interest-sensitive life insurance policies keeps them in force in situations where the policy value is not sufficient to cover monthly charges then due. The no lapse guarantee remains in effect so long as the policy meets a contractually specified premium funding test and certain other requirements. The following table summarizes the no lapse guarantee liabilities reflected in the General Account in future policy benefits and other policyholders liabilities, and related reinsurance ceded:
DIRECT REINSURANCE LIABILITY CEDED NET ----------------- ----------------- ----------------- (IN MILLIONS) Balance at January 1, 2004......................... $ 37.4 $ - $ 37.4 Impact of adoption of SOP 03-1................... (23.4) (1.7) (25.1) Other changes in reserve......................... 6.5 (4.4) 2.1 ----------------- ----------------- ----------------- Balance at December 31, 2004....................... 20.5 (6.1) 14.4 Other changes in reserve........................ 14.3 (14.3) - ----------------- ----------------- ----------------- Balance at December 31, 2005....................... $ 34.8 $ (20.4) $ 14.4 ================= ================= =================
F-33 10) SHORT-TERM AND LONG-TERM DEBT Short-term and long-term debt consists of the following:
DECEMBER 31, -------------------------------------- 2005 2004 ---------------- ----------------- (IN MILLIONS) Short-term debt: Current portion of long-term debt.................................... $ 399.7 $ 399.9 Promissory note, 3.84% .............................................. 248.3 248.3 ---------------- ----------------- Total short-term debt................................................ 648.0 648.2 ---------------- ----------------- Long-term debt: AXA Equitable: Surplus Notes, 7.70%, due 2015..................................... 199.8 199.8 ---------------- ----------------- Total AXA Equitable............................................ 199.8 199.8 ---------------- ----------------- AllianceBernstein: Senior Notes, 5.625%, due 2006..................................... - 399.2 Other.............................................................. 7.6 8.3 ---------------- ----------------- Total AllianceBernstein........................................ 7.6 407.5 ---------------- ----------------- Total long-term debt................................................. 207.4 607.3 ---------------- ----------------- Total Short-term and Long-term Debt.................................. $ 855.4 $ 1,255.5 ================ =================
Short-term Debt --------------- AXA Equitable discontinued its commercial paper program concurrent with the maturity of its $350.0 million credit facility during the fourth quarter of 2004. On July 9, 2004, AXA and certain of its subsidiaries entered into a (euro)3.5 billion global credit facility which matures July 9, 2009, with a group of 30 commercial banks and other lenders. Under the terms of the revolving credit facility, up to $500.0 million is available to AXA Financial, the parent of AXA Equitable. AXA Equitable has a $350.0 million, one-year promissory note, of which $101.7 million is included within Wind-up Annuities. The promissory note, which matures in March 2006, is related to wholly owned real estate. Certain terms of the promissory note, such as interest rate and maturity date, are negotiated annually. At December 31, 2005 and 2004, the Company had pledged real estate of $320.8 million and $307.1 million, respectively, as collateral for certain short-term debt. In August 2001, AllianceBernstein issued $400.0 million 5.625% notes pursuant to a shelf registration statement under which AllianceBernstein may issue up to $600.0 million in senior debt securities. These AllianceBernstein notes mature in August 2006 and are redeemable at any time. The proceeds from the AllianceBernstein notes were used to reduce commercial paper and credit facility borrowings and for other general partnership purposes. Since 1998, AllianceBernstein has had a $425.0 million commercial paper program. In September 2002, AllianceBernstein entered into an $800.0 million five-year revolving credit facility with a group of commercial banks and other lenders. Of the $800.0 million total, $425.0 million is intended to provide back-up liquidity for AllianceBernstein's $425.0 million commercial paper program, with the balance available for general purposes. Under this revolving credit facility, the interest rate, at the option of AllianceBernstein, is a floating rate generally based upon a defined prime rate, a rate related to the London Interbank Offered Rate ("LIBOR") or the Federal funds rate. The revolving credit facility contains covenants that, among other things, require AllianceBernstein to meet certain financial ratios. AllianceBernstein was in compliance with the covenants at December 31, 2005. On February 17, 2006, Alliance Bernstein replaced the existing agreement with a new $800.0 million five-year revolving credit facility with substantially identical terms. F-34 At December 31, 2005, no borrowings were outstanding under AllianceBernstein's commercial paper program or revolving credit facilities. At December 31, 2005, AllianceBernstein maintained a $100.0 million extendible commercial notes ("ECN") program as a supplement to its $425.0 million commercial paper program. ECNs are short-term uncommitted debt instruments that do not require back-up liquidity support. At December 31, 2005, no amounts were outstanding under the ECN program. Long-term Debt -------------- At December 31, 2005, the Company was not in breach of any debt covenants. At December 31, 2005, aggregate maturities of the long-term debt based on required principal payments at maturity were $400.0 million for 2006, $7.6 million for 2007, zero for 2008, 2009, 2010, and $200.0 million thereafter. 11) INCOME TAXES A summary of the income tax expense in the consolidated statements of earnings follows:
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) Income tax expense: Current expense ................................. $ 237.5 $ 358.9 $ 112.5 Deferred expense................................. 282.0 37.4 128.0 ----------------- ----------------- ----------------- Total.............................................. $ 519.5 $ 396.3 $ 240.5 ================= ================= =================
The income taxes attributable to consolidated operations are different from the amounts determined by multiplying the earnings before income taxes and minority interest by the expected income tax rate of 35%. The sources of the difference and their tax effects follow:
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) Expected income tax expense........................ $ 715.8 $ 586.0 $ 332.6 Minority interest.................................. (175.9) (110.4) (58.7) Separate Account investment activity............... (87.2) (63.3) (29.1) Non-taxable investment income...................... (19.7) (22.6) (20.8) Non-deductible penalty............................. 1.1 - 14.8 Adjustment of tax audit reserves................... 11.1 7.7 (9.9) Non-deductible goodwill and other intangibles...... 2.8 2.7 - State income taxes................................. 28.3 - - AllianceBernstein Federal and foreign taxes........ 41.4 - - Other.............................................. 1.8 (3.8) 11.6 ----------------- ----------------- ----------------- Income Tax Expense................................. $ 519.5 $ 396.3 $ 240.5 ================= ================= =================
The components of the net deferred income taxes are as follows: F-35
DECEMBER 31, 2005 December 31, 2004 -------------------------------- --------------------------------- ASSETS LIABILITIES Assets Liabilities --------------- --------------- --------------- ---------------- (IN MILLIONS) Compensation and related benefits...... $ - $ 285.3 $ - $ 213.9 Reserves and reinsurance............... 929.2 - 945.1 - DAC.................................... - 2,200.6 - 2,026.8 Unrealized investment gains............ - 250.7 - 483.7 Investments............................ - 739.5 - 557.9 Other.................................. 107.2 - - 41.9 --------------- --------------- --------------- ---------------- Total.................................. $ 1,036.4 $ 3,476.1 $ 945.1 $ 3,324.2 =============== =============== =============== ================
In 2003, the IRS commenced an examination of the AXA Financial Group's consolidated Federal income tax returns, which includes the Company, for the years 1997 through 2001. While that audit process is not yet complete, the IRS began an examination of AXA Financial Group's consolidated 2002 and 2003 returns during 2005. Management believes these audits will have no material adverse effect on the Company's consolidated results of operations or financial position. 12) REINSURANCE AGREEMENTS The Insurance Group assumes and cedes reinsurance with other insurance companies. The Insurance Group evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Ceded reinsurance does not relieve the originating insurer of liability. The Insurance Group reinsured most of its new variable life, universal life and term life policies on an excess of retention basis. Through October 2005, the Insurance Group retained mortality risk up to a maximum of $15 million on single-life policies and $20 million on second-to-die policies with the excess 100% reinsured. In November 2005, the Insurance Group increased the retention on single life policies to $25 million and on second to die policies to $30 million with the excess 100% reinsured. For certain segments of its business, the Insurance Group ceded 50% of the business underwritten by AXA Equitable on a guaranteed or simplified issue basis was ceded on a yearly renewable term basis. The Insurance Group also reinsures the entire risk on certain substandard underwriting risks and in certain other cases. Likewise, certain risks that would otherwise be reinsured on a proportional basis have been retained. At December 31, 2005, the Company had reinsured in the aggregate approximately 29.7% of its current exposure to the GMDB obligation on annuity contracts in-force and, subject to certain maximum amounts or caps in any one period, approximately 74.8% of its current liability exposure resulting from the GMIB feature. See Note 9 of Notes to Consolidated Financial Statements. Based on management's estimates of future contract cash flows and experience, the estimated fair values of the GMIB reinsurance contracts, considered derivatives under SFAS No. 133, at December 31, 2005 and 2004 were $132.6 million and $90.0 million, respectively. The increase (decrease) in estimated fair value was $42.6 million, $61.0 million and $(91.0) million for 2005, 2004 and 2003, respectively. At December 31, 2005 and 2004, respectively, reinsurance recoverables related to insurance contracts amounted to $2.60 billion and $2.55 billion. Reinsurance payables related to insurance contracts totaling $39.7 million and $35.5 million are included in other liabilities in the consolidated balance sheets. The Insurance Group cedes substantially all of its group life and health business to a third party insurer. Insurance liabilities ceded totaled $288.4 million and $381.1 million at December 31, 2005 and 2004, respectively. The Insurance Group also cedes a portion of its extended term insurance and paid up life insurance and substantially all of its individual disability income business through various coinsurance agreements. In addition to the sale of insurance products, the Insurance Group acts as a professional retrocessionaire by assuming life reinsurance from professional reinsurers. The Insurance Group has also assumed accident, health, aviation and space risks by participating in or reinsuring various reinsurance pools and arrangements. Reinsurance assumed reserves at December 31, 2005 and 2004 were $624.6 million and $653.0 million, respectively. F-36 The following table summarizes the effect of reinsurance (excluding group life and health):
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) Direct premiums.................................... $ 901.0 $ 828.9 $ 913.8 Reinsurance assumed................................ 170.1 191.2 153.2 Reinsurance ceded.................................. (189.4) (140.5) (177.6) ----------------- ----------------- ----------------- Premiums........................................... $ 881.7 $ 879.6 $ 889.4 ================= ================= ================= Universal Life and Investment-type Product Policy Fee Income Ceded.......................... $ 169.3 $ 134.8 $ 100.3 ================= ================= ================= Policyholders' Benefits Ceded...................... $ 300.2 $ 361.0 $ 390.9 ================= ================= ================= Interest Credited to Policyholders' Account Balances Ceded................................... $ 50.9 $ 50.2 $ 49.7 ================= ================= =================
13) EMPLOYEE BENEFIT PLANS The Company (other than AllianceBernstein) sponsors qualified and non-qualified defined benefit plans covering substantially all employees (including certain qualified part-time employees), managers and certain agents. These pension plans are non-contributory and their benefits are based on a cash balance formula or, for certain participants, years of service and final average earnings, if greater, under certain grandfathering rules in the plans. AllianceBernstein maintains a qualified, non-contributory, defined benefit retirement plan covering current and former employees who were employed by AllianceBernstein in the United States prior to October 2, 2000. AllianceBernstein's benefits are based on years of credited service, average final base salary and primary social security benefits. The Company uses a December 31 measurement date for its pension and postretirement plans. Generally, the Company's funding policy is to make the minimum contribution required by the Employee Retirement Income Security Act of 1974 ("ERISA"). The Company made cash contributions of $78.7 million in 2005. No significant cash contributions to the Company's qualified plans are expected to be required to satisfy their minimum funding requirements for the year ended 2006. Components of net periodic pension expense follow:
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) Service cost....................................... $ 36.0 $ 34.6 $ 31.8 Interest cost on projected benefit obligations..... 123.7 121.9 122.6 Expected return on assets.......................... (173.7) (170.9) (173.9) Net amortization and deferrals..................... 78.8 64.7 53.4 ----------------- ----------------- ----------------- Net Periodic Pension Expense....................... $ 64.8 $ 50.3 $ 33.9 ================= ================= =================
F-37 The projected benefit obligations under the pension plans were comprised of:
DECEMBER 31, ------------------------------------- 2005 2004 ----------------- ----------------- (IN MILLIONS) Benefit obligations, beginning of year................................. $ 2,212.0 $ 2,013.3 Service cost........................................................... 30.0 28.6 Interest cost.......................................................... 123.7 121.9 Actuarial losses ...................................................... 128.7 184.0 Benefits paid.......................................................... (128.9) (135.8) ----------------- ----------------- Benefit Obligations, End of Year....................................... $ 2,365.5 $ 2,212.0 ================= =================
The change in plan assets and the funded status of the pension plans was as follows:
DECEMBER 31, ----------------------------------- 2005 2004 ---------------- ----------------- (IN MILLIONS) Plan assets at fair value, beginning of year.............................. $ 2,126.7 $ 2,015.1 Actual return on plan assets.............................................. 208.9 243.9 Contributions............................................................. 78.5 11.4 Benefits paid and fees.................................................... (135.6) (143.7) ---------------- ----------------- Plan assets at fair value, end of year.................................... 2,278.5 2,126.7 Projected benefit obligations............................................. 2,365.5 2,212.0 ---------------- ----------------- (Underfunding) excess of plan assets over projected benefit obligations... (87.0) (85.3) Unrecognized prior service cost........................................... (24.4) (29.8) Unrecognized net loss from past experience different from that assumed....................................................... 957.3 947.5 Unrecognized net asset at transition...................................... (1.0) (1.3) ---------------- ----------------- Prepaid Pension Cost, Net................................................. $ 844.9 $ 831.1 ================ =================
The prepaid pension costs for pension plans with projected benefit obligations in excess of plan assets were $868.3 million and $852.4 million and the accrued liabilities for pension plans with accumulated benefit obligations in excess of plan assets were $23.4 million and $21.3 million at December 31, 2005 and 2004, respectively. The following table discloses the estimated fair value of plan assets and the percentage of estimated fair value to total plan assets:
DECEMBER 31, ------------------------------------------------------------ 2005 2004 -------------------------------- -------------------------- (IN MILLIONS) ESTIMATED Estimated FAIR VALUE % Fair Value % ------------------------- ------ ------------------ ------ Corporate and government debt securities........ $ 452.3 19.9 $ 450.1 21.2 Equity securities............................... 1,526.5 67.0 1,468.0 69.0 Equity real estate ............................. 221.8 9.7 192.8 9.1 Short-term investments.......................... 77.9 3.4 14.9 .7 Other........................................... - - .9 - ------------------------- ------------------ Total Plan Assets............................... $ 2,278.5 $ 2,126.7 ========================= ==================
The primary investment objective of the plans of the Company is to maximize return on assets, giving consideration to prudent risk. The asset allocation is designed with a long-term investment horizon, based on target investment of 65% equities, 25% fixed income and 10% real estate. Emphasis is given to equity investments, given their higher expected rate of return. Fixed income investments are included to provide less volatile return. Real estate investments offer diversity to the total portfolio and long-term inflation protection. F-38 A secondary investment objective of the plans of the Company is to minimize variation in annual net periodic pension cost over the long term and to fund as much of the future liability growth as practical. Specifically, a reasonable total rate of return is defined as income plus realized and unrealized capital gains and losses such that the growth in projected benefit obligation is less than the return on investments plus contributions. The assumed discount rates for measurement of the benefit obligations at December 31, 2005 and 2004 each reflect the rates at which pension benefits then could be effectively settled. Specifically at December 31, 2005, projected nominal cash outflows to fund expected annual benefits payments under the Company's qualified and non-qualified pension and postretirement benefit plans were discounted using a published high-quality bond yield curve. The discount rate of 5.25% disclosed below as having been used to measure the benefits obligation at December 31, 2005 represents the blended or level equivalent discount rate that produces the same present value measure of the benefits obligation as the aforementioned discounted cash flow analysis. This methodology is a refinement from that used at December 31, 2004 and years prior thereto for purpose of measuring the benefits obligation, for which the assumed discount rate was estimated by benchmarking off of a published long-term bond index determined to be consistent with the timing and amount of expected benefit payments. The following table discloses the weighted-average assumptions used to measure the Company's pension benefit obligations and net periodic pension cost at and for the years ended December 31, 2005 and 2004.
AXA FINANCIAL GROUP -------------------------------- 2005 2004 ---- ---- Discount rate: Benefit obligation............................................... 5.25% 5.75% Periodic cost.................................................... 5.75% 6.25% Rate of compensation increase: Benefit obligation and periodic cost............................. 6.00% 5.75% Expected long-term rate of return on plan assets (periodic cost)... 8.50% 8.50%
As noted above, the pension plans' target asset allocation is 65% equities, 25% fixed maturities, and 10% real estate. Management reviewed the historical investment returns and future expectations of returns from these asset classes to conclude that a long-term expected rate of return of 8.5% is reasonable. The aggregate accumulated benefit obligation and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of plan assets were $66.9 million and $47.9 million at December 31, 2005 and $59.3 million and $40.7 million at December 31, 2004, respectively. The accumulated benefit obligation for all defined benefit pension plans was $2,289.9 million and $ 2,072.6 million at December 31, 2005 and 2004, respectively. The aggregate projected benefit obligation for pension plans with projected benefit obligations in excess of plan assets was $2,365.5 million at December 31, 2005 and $2,212.0 million at December 31, 2004. Prior to 1987, the pension plan funded participants' benefits through the purchase of non-participating annuity contracts from AXA Equitable. Benefit payments under these contracts were approximately $21.7 million, $23.2 million and $24.5 million for 2005, 2004 and 2003, respectively. The following table sets forth an estimate of future benefits expected to be paid in each of the next five years, beginning January 1, 2006, and in the aggregate for the five years thereafter. These estimates are based on the same assumptions used to measure the respective benefit obligations at December 31, 2005 and include benefits attributable to estimated future employee service. Pension Benefits -------------------- (In Millions) 2006......................$ 158.2 2007...................... 169.1 2008...................... 169.4 2009...................... 172.5 2010...................... 174.2 Years 2011-2015............ 889.8 F-39 The Medicare Prescription Drug, Improvement and Modernization Act of 2003 introduced a prescription drug benefit under Medicare Part D that would go into effect in 2006 as well as a Federal subsidy to employers whose plans provide an "actuarially equivalent" prescription drug benefit. In 2005, following the issuance of regulations, management and its actuarial advisors concluded that the prescription drug benefits provided under the Company's retiree medical plans are actuarially equivalent to the new Medicare prescription drug benefits. Consequently, the estimated subsidy has been reflected in measurements of the accumulated postretirement benefits obligations for these plans as of January 1, 2005, and the resulting aggregate reduction of $51.9 million is accounted for prospectively as an actuarial experience gain in accordance with FSP No. 106-2. The impact of the MMA, including the effect of the subsidy, resulted in a decrease in the annual net periodic postretirement benefits costs for 2005 of approximately $7.4 million. AllianceBernstein maintains several unfunded deferred compensation plans for the benefit of certain eligible employees and executives. The AllianceBernstein Capital Accumulation Plan was frozen on December 31, 1987 and no additional awards have been made. For the active plans, benefits vest over a period ranging from 3 to 8 years and are amortized as compensation and benefit expense. ACMC, Inc. ("ACMC"), a subsidiary of the Company, is obligated to make capital contributions to AllianceBernstein in amounts equal to benefits paid under the AllianceBernstein Capital Accumulation Plan and the contractual unfunded deferred compensation arrangements. In connection with the acquisition of Bernstein, AllianceBernstein agreed to invest $96.0 million per annum for three years to fund purchases of AllianceBernstein Holding units or an AllianceBernstein sponsored money market fund in each case for the benefit of certain individuals who were stockholders or principals of Bernstein or hired to replace them. The Company has recorded compensation and benefit expenses in connection with these deferred compensation plans totaling $186.2 million, $146.7 million and $124.2 million for 2005, 2004 and 2003, respectively (including $29.1 million, $61.3 million and $85.1 million for 2005, 2004 and 2003, respectively, relating to the Bernstein deferred compensation plan). 14) DERIVATIVES AND FAIR VALUE OF FINANCIAL INSTRUMENTS Derivatives ----------- The Insurance Group primarily uses derivatives for asset/liability risk management, for hedging individual securities and certain equity exposures and to reduce the Insurance Group's exposure of interest rate fluctuations. Various derivative instruments are used to achieve these objectives, including interest rate floors and interest rate swaps. In addition, the Company periodically enters into futures contracts to hedge certain equity exposures, including the program to hedge certain risks associated with the GMDB/GMIB features of the Accumulator series of annuity products. At December 31, 2005, the Company's outstanding equity-based futures contracts were exchanged-traded and net settled each day. Also, the Company has purchased reinsurance contracts to mitigate the risks associated with the impact of potential market fluctuations on future policyholder elections of GMIB features contained in annuity contracts issued by the Company. See Note 12 to Notes to Consolidated Financial Statements. Margins on individual insurance and annuity contracts are affected by interest rate fluctuations. If interest rates fall, crediting interest rates and dividends would be adjusted subject to competitive pressures. In addition, policies are subject to minimum rate guarantees. To hedge exposure to lower interest rates, the Company has used interest rate floors. At December 31, 2005 and 2004, respectively the outstanding notional amount of interest rate floors was $24.0 billion and $12.0 billion. For 2005 and 2004, respectively, net unrealized losses of $3.7 million and $3.9 million were recognized from floor contracts. These derivatives do not qualify for hedge accounting treatment under GAAP. The Company issues certain variable annuity products with GMDB and GMIB features. The risk associated with the GMDB feature is that under-performance of the financial markets could result in GMDB benefits, in the event of death, being higher than what accumulated policyholder account balances would support. The risk associated with the GMIB feature is that under-performance of the financial markets could result in GMIB benefits, in the event of election, being higher than what accumulated policyholders account balances would support. The Company initiated a dynamic hedging program in the third quarter 2003, utilizing exchange traded futures contracts, to hedge certain risks associated with the GMDB feature of certain annuity products with a total account value of $29,290 million at December 31, 2005 and, in 2004, initiated a similar program to hedge certain risks associated with the GMIB feature of certain annuity products with a total account value of $14,164 million at December 31, 2005. The futures contracts are managed to correlate with changes in the value of the GMDB and GMIB feature that result from financial markets movements. AXA Financial Group retains basis risk and risk associated with actual versus expected assumptions for mortality, lapse and election rate. This program does not qualify for hedge accounting treatment under GAAP. At December 31, 2005, the Company had open exchange-traded futures positions on the S&P 500, Russell 1000 and F-40 NASDAQ 100 indices, having aggregate notional totals of $1,848.0 million and initial margin requirements of $99.4 million. Contracts are net settled daily. At December 31, 2005, the Company had open exchange-traded futures positions on the 10-year U.S. Treasury Note, having aggregate notional totals $286.6 million and initial margin requirements of $5.0 million. Contracts are net settled daily. For 2005 and 2004, net realized gains (losses) of $(140.9) million and $(63.1) million and net unrealized gains (losses) of $59.2 million and (20.6) million were recognized from futures contracts utilized in this program and were partially offset by similar declines in the GMDB and GMIB reserve. AXA Equitable is exposed to equity market fluctuations through investments in its variable annuity Separate Accounts. In 2005, AXA Equitable initiated a program utilizing exchange traded equity futures designed to minimize such risk. At December 31, 2005, AXA Equitable had open exchange-traded futures positions with an aggregate notional amount of $73.3 million and an initial margin requirement of $4.0 million. The Company is exposed to counterparty risk attributable to hedging transactions entered into with counterparties. Exposure to credit risk is controlled with the respect to each counterparty through a credit appraisal and approval process. Each counterparty is currently rated 1 by the National Association of Insurance Commissioners ("NAIC"). All derivatives outstanding at December 31, 2005 and 2004 are recognized on the balance sheet at their fair values. The outstanding notional amounts of derivative financial instruments purchased and sold were:
DECEMBER 31, ------------------------------------- 2005 2004 ----------------- ----------------- (IN MILLIONS) Notional Amount by Derivative Type: Options: Floors.......................................................... $ 24,000 $ 12,000 Exchange traded U.S. Treasuries and equity index futures........ 2,208 1,113 ----------------- ----------------- Total............................................................... $ 26,208 $ 13,113 ================= =================
At December 31, 2005 and 2004 and during the years then ended, there were no hybrid instruments that required bifurcation of an embedded derivative component under the provisions of SFAS No. 133. All gains and losses on derivative financial instruments utilized by the Company in 2005, 2004 and 2003 were reported in earnings. None of the derivatives were designated as qualifying hedges under SFAS No. 133. For 2005, 2004 and 2003, respectively, investment results on derivative positions, principally in Net investment income, included gross gains of $84.2 million, $26.2 million and $0.6 million and gross losses of $169.7 million, $114.2 million and $42.6 million that were recognized. Fair Value of Financial Instruments ----------------------------------- The Company defines fair value as the quoted market prices for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are estimated using present value or other valuation techniques. The fair value estimates are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value estimates cannot be substantiated by comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. Certain financial instruments are excluded, particularly insurance liabilities other than financial guarantees and investment contracts. Fair market values of off-balance-sheet financial instruments of the Insurance Group were not material at December 31, 2005 and 2004. Fair values for mortgage loans on real estate are estimated by discounting future contractual cash flows using interest rates at which loans with similar characteristics and credit quality would be made. Fair values for foreclosed mortgage loans and problem mortgage loans are limited to the estimated fair value of the underlying collateral if lower. F-41 Fair values of policy loans are estimated by discounting the face value of the loans from the time of the next interest rate review to the present, at a rate equal to the excess of the current estimated market rates over the current interest rate charged on the loan. The estimated fair values for the Company's association plan contracts, supplementary contracts not involving life contingencies ("SCNILC") and annuities certain, which are included in policyholders' account balances, and guaranteed interest contracts are estimated using projected cash flows discounted at rates reflecting expected current offering rates. The fair values for variable deferred annuities and single premium deferred annuities, included in policyholders' account balances, are estimated as the discounted value of projected account values. Current account values are projected to the time of the next crediting rate review at the current crediting rates and are projected beyond that date at the greater of current estimated market rates offered on new policies or the guaranteed minimum crediting rate. Expected cash flows and projected account values are discounted back to the present at the current estimated market rates. Fair values for long-term debt are determined using published market values, where available, or contractual cash flows discounted at market interest rates. The estimated fair values for non-recourse mortgage debt are determined by discounting contractual cash flows at a rate that takes into account the level of current market interest rates and collateral risk. The estimated fair values for recourse mortgage debt are determined by discounting contractual cash flows at a rate based upon current interest rates of other companies with credit ratings similar to the Company. The Company's carrying value of short-term borrowings approximates their estimated fair value. The carrying value and estimated fair value for financial instruments not previously disclosed in Notes 3, 7, 8 and 10 of Notes to Consolidated Financial Statements are presented below:
DECEMBER 31, -------------------------------------------------------------------- 2005 2004 -------------------------------- --------------------------------- CARRYING ESTIMATED Carrying Estimated VALUE FAIR VALUE Value Fair Value --------------- --------------- --------------- ---------------- (IN MILLIONS) Consolidated: ------------- Mortgage loans on real estate.......... $ 3,233.9 $ 3,329.0 $ 3,131.9 $ 3,321.4 Other limited partnership interests.... 937.3 937.3 891.0 891.0 Policy loans........................... 3,824.2 4,245.6 3,831.4 4,358.2 Policyholders liabilities: Investment contracts................. 18,021.0 18,289.1 17,755.5 18,175.5 Long-term debt......................... 207.4 240.2 607.3 665.9 Closed Block: ------------- Mortgage loans on real estate.......... $ 930.3 $ 957.7 $ 1,098.8 $ 1,162.9 Other equity investments............... 3.3 3.3 3.8 3.8 Policy loans........................... 1,284.4 1,454.1 1,322.5 1,535.4 SCNILC liability....................... 11.4 11.6 13.1 13.1 Wind-up Annuities: ------------------ Mortgage loans on real estate.......... $ 6.7 $ 7.1 $ 21.4 $ 23.1 Other equity investments............... 3.1 3.1 4.4 4.4 Guaranteed interest contracts.......... 6.5 6.4 6.8 6.8 Long-term debt......................... 101.7 101.7 101.7 101.7
15) COMMITMENTS AND CONTINGENT LIABILITIES In addition to its debt and lease commitments discussed in Notes 10 and 17 of Notes to Consolidated Financial Statements, from time to time, the Company has provided certain guarantees or commitments to affiliates, investors and others. At December 31, 2005, these arrangements included commitments by the Company to provide equity financing of $465.2 million to certain limited partnerships under certain conditions. Management believes the Company will not incur material losses as a result of these commitments. F-42 AXA Equitable is the obligor under certain structured settlement agreements it had entered into with unaffiliated insurance companies and beneficiaries. To satisfy its obligations under these agreements, AXA Equitable owns single premium annuities issued by previously wholly owned life insurance subsidiaries. AXA Equitable has directed payment under these annuities to be made directly to the beneficiaries under the structured settlement agreements. A contingent liability exists with respect to these agreements should the previously wholly owned subsidiaries be unable to meet their obligations. Management believes the need for AXA Equitable to satisfy those obligations is remote. The Company had $60.5 million of undrawn letters of credit related to reinsurance at December 31, 2005. AXA Equitable had $46.9 million in commitments under existing mortgage loan agreements at December 31, 2005. In February 2002, AllianceBernstein signed a $125.0 million agreement with a commercial bank under which it guaranteed certain obligations of SCB LLC incurred in the ordinary course of its business in the event SCB LLC is unable to meet these obligations. At December 31, 2005, AllianceBernstein was not required to perform under the agreement and had no liability outstanding in connection with the agreement. 16) LITIGATION A number of lawsuits have been filed against life and health insurers in the jurisdictions in which AXA Equitable and its respective insurance subsidiaries do business involving insurers' sales practices, alleged agent misconduct, alleged failure to properly supervise agents, and other matters. Some of the lawsuits have resulted in the award of substantial judgments against other insurers, including material amounts of punitive damages, or in substantial settlements. In some states, juries have substantial discretion in awarding punitive damages. AXA Equitable,and AXA Life, like other life and health insurers, from time to time are involved in such litigations. In October 2000, an action entitled AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, AS TRUSTEE F/B/O EMERALD INVESTMENTS LP AND EMERALD INVESTMENTS LP V. AXA CLIENT SOLUTIONS, LLC; THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES; AND AXA FINANCIAL, INC. was commenced in the United States District Court for the Northern District of Illinois. The complaint alleges that the defendants, in connection with certain annuities issued by AXA Equitable (i) breached an agreement with the plaintiffs involving the execution of subaccount transfers, and (ii) wrongfully withheld withdrawal charges in connection with the termination of such annuities. Plaintiffs seek substantial lost profits and injunctive relief, punitive damages and attorneys' fees. Plaintiffs also seek return of the withdrawal charges. In March 2001, plaintiffs filed an amended complaint. The District Court granted defendants' motion to dismiss AXA Client Solutions and AXA Financial from the amended complaint, and dismissed the conversion claims in June 2001. In July 2004, the court dismissed EMERALD's complaint for lack of subject matter (diversity) jurisdiction. In June 2004, Emerald filed a new complaint that was substantially similar to the complaint filed in the dismissed action against AXA Equitable, AXA Client Solutions, LLC, and AXA Financial in the United States District Court for the Northern District of Illinois. In July 2004, EMERALD filed an amended complaint and AXA Equitable filed a partial motion to dismiss the amended complaint, which was granted. In September 2004, the Court granted EMERALD's motion to dismiss several affirmative defenses asserted by AXA Equitable. In December 2005, the Court granted summary judgment on liability with respect to three of EMERALD's causes of action. In January 2006, AXA Equitable filed a motion for reconsideration. While the monetary damages sought by plaintiffs, if awarded, could have a material adverse effect on the consolidated financial position and results of operations of the Company, management believes that the ultimate resolution of this litigation should not have a material adverse effect on the Company's consolidated financial position. After the District Court denied defendants' motion to assert certain defenses and counterclaims in AMERICAN NATIONAL BANK, AXA Equitable commenced a separate action, in December 2001, entitled THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES V. AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, AS TRUSTEE F/B/O EMERALD INVESTMENTS LP AND EMERALD INVESTMENTS LP, in the United States District Court for the Northern District of Illinois. The complaint arises out of the same facts and circumstances as described in AMERICAN NATIONAL BANK. AXA Equitable's complaint alleges common law fraud and equitable rescission in connection with certain annuities issued by AXA Equitable. AXA Equitable seeks unspecified money damages, rescission, punitive damages and attorneys' fees. Defendants' counterclaims, filed in March 2002, allege common law fraud, violations of the Federal and Illinois Securities Acts and violations of the Illinois and New York Consumer Fraud Acts. Defendants seek unspecified money damages, punitive damages and attorneys' fees. In May 2002, the District Court granted in part and denied in part AXA Equitable's motion to dismiss defendants' counterclaims, dismissing defendants' Illinois Securities Act and New York Consumer Fraud Act claims. In September 2004, the court granted AXA Equitable's motion to dismiss this action and retained jurisdiction over EMERALD's counterclaims in the action. F-43 In January 2004, DH2, Inc., an entity related to Emerald Investments LP filed a lawsuit in the United States District Court for the Northern District of Illinois against AXA Equitable and EQ Advisors Trust ("EQAT"), asserting claims for breach of contract and breach of fiduciary duty, claims under the Federal securities laws, and misappropriation of trade secrets. The complaint alleges that AXA Equitable and EQAT wrongfully misappropriated DH2, Inc.'s confidential and proprietary information to implement fair value pricing of securities within the subaccounts of DH2, Inc.'s variable annuity, which diminished the profitability of its proprietary trading strategy. The complaint also alleges that AXA Equitable and EQAT implemented fair value pricing for an improper purpose and without adequate disclosure. The complaint further alleges that AXA Equitable and EQAT are not permitted to implement fair value pricing of securities. In July 2004, DH2 filed an amended complaint adding the individual trustees of EQAT as defendants. In March 2005, the Court granted all defendants' motion to dismiss, dismissing DH2's claims for alleged violations of the Investment Company Act of 1940, as amended (the "Investment Company Act") with prejudice and dismissing the remaining claims without prejudice on the ground that DH2 failed to state a claim under the Federal securities laws. In April 2005, DH2 filed a second amended complaint, which alleges claims substantially similar to those included in the original amended complaint. In December 2005, the court granted in part and denied in part, defendant's motion to dismiss the second amended complaint. A putative class action entitled STEFANIE HIRT, ET AL. V. THE EQUITABLE RETIREMENT PLAN FOR EMPLOYEES, MANAGERS AND AGENTS, ET AL. was filed in the District Court for the Southern District of New York in August 2001 against The Equitable Retirement Plan for Employees, Managers and Agents (the "Retirement Plan") and The Officers Committee on Benefit Plans of Equitable Life, as Plan Administrator. The action was brought by five participants in the Retirement Plan and purports to be on behalf of "all Plan participants, whether active or retired, their beneficiaries and Estates, whose accrued benefits or pension benefits are based on the Plan's Cash Balance Formula". The complaint challenges the change, effective January 1, 1989, in the pension benefit formula from a final average pay formula to a cash balance formula. Plaintiffs allege that the change to the cash balance formula violates ERISA by reducing the rate of accruals based on age, failing to comply with ERISA's notice requirements and improperly applying the formula to retroactively reduce accrued benefits. The relief sought includes a declaration that the cash balance plan violates ERISA, an order enjoining the enforcement of the cash balance formula, reformation and damages. In April 2002, plaintiffs filed a motion seeking to certify a class of "all Plan participants, whether active or retired, their beneficiaries and Estates, whose accrued benefits or pension benefits are based on the Plan's Cash Balance Formula". Also in April 2002, plaintiffs agreed to dismiss with prejudice their claim that the change to the cash balance formula violates ERISA by improperly applying the formula to retroactively reduce accrued benefits. That claim has been dismissed. In March 2003, plaintiffs filed an amended complaint elaborating on the remaining claims in the original complaint and adding additional class and individual claims alleging that the adoption and announcement of the cash balance formula and the subsequent announcement of changes in the application of the cash balance formula failed to comply with ERISA. By order dated May 2003, the District Court, as requested by the parties, certified the case as a class action, including a sub-class of all current and former Plan participants, whether active, inactive or retired, their beneficiaries or estates, who were subject to a 1991 change in application of the cash balance formula. In July 2004, the parties filed cross motions for summary judgment asking the court to find in their respective favors on plaintiffs' claim that (1) the cash balance formula of the retirement plan violates ERISA's age discrimination provisions and (2) the notice of plan amendment distributed by AXA Equitable violated ERISA's notice rules. Following a hearing on the motions, the court ordered a limited amount of additional discovery to be conducted followed by a subsequent hearing. In April 2005, the Court denied the cross motions for summary judgment without prejudice. In July 2005, the parties refiled cross motions for summary judgment, and an evidentiary hearing was held in August 2005 on one of the claims. In January 2003, a putative class action entitled BERGER ET AL. V. AXA NETWORK, LLC AND THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES was commenced in the United States District Court for the Northern District of Illinois by two former agents on behalf of themselves and other similarly situated present, former and retired agents who, according to the complaint, "(a) were discharged by Equitable Life from `statutory employee status' after January 1, 1999, because of Equitable Life's adoption of a new policy stating that in any given year, those who failed to meet specified sales goals during the preceding year would not be treated as `statutory employees,' or (b) remain subject to discharge from `statutory employee' status based on the policy applied by Equitable Life". The complaint alleges that the company improperly "terminated" the agents' full-time life insurance salesman statutory employee status in or after 1999 by requiring attainment of minimum production credit levels for 1998, thereby making the agents ineligible for benefits and "requiring" them to pay Self-Employment Contribution Act taxes. The former agents, who assert claims for violations of ERISA and 26 U.S.C. 3121, and breach of contract, seek declaratory and injunctive relief, plus restoration of benefits and an adjustment of their benefit plan contributions and payroll tax withholdings. In July 2003, the United States District Court for the Northern District of Illinois granted in part and denied in part AXA Equitable's motion to dismiss the complaint. AXA Equitable has answered plaintiffs' remaining claim for violation of ERISA. In March 2004, the District F-44 Court entered an order certifying a class consisting of "[a]ll present, former and retired Equitable agents who (a) lost eligibility for benefits under any Equitable ERISA plan during any period on or after January 1, 1999 because of the application of the policy adopted by Equitable of using compliance with specified sales goals as the test of who was a "full time life insurance salesman" and thereby eligible for benefits under any such plan, or (b) remain subject to losing such benefits in the future because of the potential application to them of that policy". In May 2005, the Court granted AXA Equitable's motion for summary judgment and dismissed the remaining claim of violation of ERISA. In May 2005, the plaintiffs filed an appeal to the 7th Circuit Court of Appeals. In September 2004, a petition for appraisal entitled CEDE & CO. V. AXA FINANCIAL, INC. was filed in the Delaware Court of Chancery by an alleged former MONY stockholder. The petition seeks a judicial appraisal of the value of the MONY shares held by former MONY stockholders holding approximately 3.6 million shares of MONY common stock who demanded appraisal pursuant to Section 262 of the General Corporation Law of the State of Delaware and have not withdrawn their demands. The parties are engaged in discovery. On or about November 4, 2004, a petition for appraisal entitled HIGHFIELDS CAPITAL LTD. V. AXA FINANCIAL, INC. was filed in the Delaware Court of Chancery by another alleged former MONY stockholder. The relief sought by the Highfields Capital petition is substantially identical to that sought pursuant to the Cede & Co. petition. The parties are engaged in discovery. In February 2005, the Delaware Court of Chancery consolidated the two actions for all purposes. In April 2004, a purported nationwide class action lawsuit was filed in the Circuit Court for Madison County, Illinois entitled MATTHEW WIGGENHORN V. EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES. The lawsuit alleges that AXA Equitable uses stale prices for the foreign securities within the investment divisions of its variable insurance products. The complaint further alleges that AXA Equitable's use of stale pricing diluted the returns of the purported class. The complaint also alleges that AXA Equitable breached its fiduciary duty to the class by allowing market timing in general within AXA Equitable's variable insurance products, thereby diluting the returns of the class. In June 2005, this case was transferred by the Judicial Panel on Multidistrict Litigation to the U.S. District Court in Maryland, where other market-timing related litigation is pending. In June 2005, plaintiff filed an amended complaint. In July 2005, AXA Equitable filed a motion to dismiss the amended complaint, which is pending. ALLIANCE LITIGATION In April 2002, a consolidated complaint entitled IN RE ENRON CORPORATION SECURITIES LITIGATION ("Enron Complaint") was filed in the United States District Court for the Southern District of Texas, Houston Division, against numerous defendants, including AllianceBernstein. The principal allegations of the Enron Complaint, as they pertain to AllianceBernstein, are that AllianceBernstein violated Sections 11 and 15 of the Securities Act of 1933, as amended ("Securities Act") with respect to a registration statement filed by Enron and effective with the SEC on July 18, 2001, which was used to sell $1.9 billion Enron Zero Coupon Convertible Notes due 2021. Plaintiffs allege the registration statement was materially misleading and that Frank Savage, a director of Enron, who was at that time an employee of AllianceBernstein and a director of the general partner of AllianceBernstein (the "General Partner"), signed the registration statement at issue. Plaintiffs therefore assert that AllianceBernstein is itself liable for the allegedly misleading registration statement. Plaintiffs seek rescission or a rescissionary measure of damages. In June 2002, AllianceBernstein moved to dismiss the Enron Complaint as the allegations therein pertain to it. In March 2003, that motion was denied. In May 2003, a First Amended Consolidated Complaint, with substantially identical allegations as to AllianceBernstein, was filed. AllianceBernstein filed its answer in June 2003. In May 2003, plaintiffs filed an Amended Motion For Class Certification. In October 2003, following the completion of class discovery, AllianceBernstein filed its opposition to class certification. AllianceBernstein's motion is pending. The case is currently in discovery. In September 2002, a complaint entitled LAWRENCE E. JAFFE PENSION PLAN, LAWRENCE E. JAFFE TRUSTEE U/A 1198 V. ALLIANCE CAPITAL MANAGEMENT L.P., ALFRED HARRISON AND ALLIANCE PREMIER GROWTH FUND, INC. ("JAFFE COMPLAINT") was filed in the United States District Court for the Southern District of New York against AllianceBernstein, Alfred Harrison (a former director) and the AllianceBernstein Premier Growth Fund (now known as the AllianceBernstein Large Cap Growth Fund "Large Cap Growth Fund") alleging violation of the Investment Company Act. Plaintiff seeks damages equal to Large Cap Growth Fund's losses as a result of Large Cap Growth Fund's investment in shares of Enron and a recovery of all fees paid by Large Cap Growth Fund to AllianceBernstein beginning November 1, 2000. In March 2003, the court granted AllianceBernstein's motion to transfer the JAFFE COMPLAINT to the United States District Court for the District of New Jersey for coordination with the now dismissed BENAK V. ALLIANCE CAPITAL MANAGEMENT L.P. AND ALLIANCE PREMIER GROWTH FUND action then pending. In December 2003, plaintiff filed an amended complaint ("Amended Jaffe Complaint") in the United States District Court for the District of New Jersey. The AMENDED JAFFE COMPLAINT alleges violations of Section 36(a) of the Investment Company Act, common law negligence, and negligent misrepresentation. Specifically, the AMENDED JAFFE COMPLAINT alleges that (i) the defendants breached their fiduciary duties of loyalty, care F-45 and good faith to Large Cap Growth Fund by causing Large Cap Growth Fund to invest in the securities of Enron, (ii) the defendants were negligent for investing in securities of Enron, and (iii) through prospectuses and other documents, defendants misrepresented material facts related to Large Cap Growth Fund's investment objective and policies. In January 2004, defendants moved to dismiss the AMENDED JAFFE COMPLAINT. In May 2005, the court granted defendant's motion and dismissed the case on the ground that plaintiff failed to make a demand on the Large Cap Growth Fund's Board of Directors ("LCG Board") pursuant to Rule 23.1 of the Federal Rules of Civil Procedure. Plaintiff's time to file an appeal has expired. In June 2005, plaintiff made a demand on the LCG Board, requesting that the LCG Board take action against AllianceBernstein for the reasons set forth in the AMENDED JAFFE COMPLAINT. In December 2005, the LCG Board rejected plaintiff's demand. In December 2002, a putative class action complaint entitled PATRICK J. GOGGINS ET AL. V. ALLIANCE CAPITAL MANAGEMENT L.P. ET AL. ("GOGGINS COMPLAINT") was filed in the United States District Court for the Southern District of New York against AllianceBernstein, Large Cap Growth Fund and individual directors and certain officers of Large Cap Growth Fund. In August 2003, the court granted AllianceBernstein's motion to transfer the Goggins Complaint to the United States District Court for the District of New Jersey. In December 2003, plaintiffs filed an amended complaint ("AMENDED GOGGINS COMPLAINT") in the United States District Court for the District of New Jersey, which alleges that defendants violated Sections 11, 12(a)(2) and 15 of the Securities Act because Large Cap Growth Fund's registration statements and prospectuses contained untrue statements of material fact and omitted material facts. More specifically, the AMENDED GOGGINS COMPLAINT alleges that the Large Cap Growth Fund's investment in Enron was inconsistent with the Large Cap Growth Fund's stated strategic objectives and investment strategies. Plaintiffs seek rescissionary relief or an unspecified amount of compensatory damages on behalf of a class of persons who purchased shares of Large Cap Growth Fund during the period October 31, 2000 through February 14, 2002. In January 2004, AllianceBernstein moved to dismiss the AMENDED GOGGINS COMPLAINT. In December 2004, the court granted AllianceBernstein's motion and dismissed the case. In January 2005, plaintiffs appealed the court's decision. In January 2006, the U.S. Court of Appeals for the Third Circuit affirmed the dismissal. Plaintiffs' time to seek further review of the court's decision expires on April 13, 2006. In October 2003, a purported class action complaint entitled ERB ET AL. V. ALLIANCE CAPITAL MANAGEMENT L.P. ("ERB COMPLAINT") was filed in the Circuit Court of St. Clair County, Illinois against AllianceBernstein. Plaintiff, purportedly a shareholder in the Large Cap Growth Fund, alleged that AllianceBernstein breached unidentified provisions of Large Cap Growth Fund's prospectus and subscription and confirmation agreements that allegedly required that every security bought for Large Cap Growth Fund's portfolio must be a "1-rated" stock, the highest rating that AllianceBernstein's research analysts could assign. Plaintiff alleges that AllianceBernstein impermissibly purchased shares of stocks that were not 1-rated. In June 2004, plaintiff filed an amended complaint ("AMENDED ERB COMPLAINT") in the Circuit Court of St. Clair County, Illinois. The AMENDED ERB COMPLAINT allegations are substantially similar to those contained in the previous complaint, however, the AMENDED ERB COMPLAINT adds a new plaintiff and seeks to allege claims on behalf of a purported class of persons or entities holding an interest in any portfolio managed by AllianceBernstein's Large Cap Growth Team. The AMENDED ERB COMPLAINT alleges that AllianceBernstein breached its contracts with these persons or entities by impermissibly purchasing shares of stocks that were not 1-rated. Plaintiffs seek rescission of all purchases of any non-1-rated stocks AllianceBernstein made for Large Cap Growth Fund and other Large Cap Growth Team clients' portfolios over the past eight years, as well as an unspecified amount of damages. In July 2004, AllianceBernstein removed the ERB action to the United States District Court for the Southern District of Illinois on the basis that plaintiffs' claims are preempted under the Securities Litigation Uniform Standards Act. In August 2004, the District Court remanded the action to the Circuit Court. In September 2004, AllianceBernstein filed a notice of appeal with respect to the District Court's order. In December 2004, plaintiffs moved to dismiss AllianceBernstein's appeal. In September 2005, AllianceBernstein's appeal was denied. Market Timing-Related Matters In October 2003, a purported class action complaint entitled HINDO, ET AL. V. ALLIANCEBERNSTEIN GROWTH & INCOME FUND ET AL. ("Hindo Complaint") was filed against AllianceBernstein, AllianceBernstein Holding, the General Partner, AXA Financial, the U.S. Funds, the registrants and issuers of those funds, certain officers of AllianceBernstein (the "AllianceBernstein defendants"), and certain other unaffiliated defendants, as well as unnamed Doe defendants. The Hindo Complaint was filed in the United States District Court for the Southern District of New York by alleged shareholders of two of the U.S. Funds. The HINDO COMPLAINT alleges that certain of the AllianceBernstein defendants failed to disclose that they improperly allowed certain hedge funds and other unidentified parties to engage in "late trading" and "market timing" of U.S. Fund securities, violating Sections 11 and 15 of the Securities Act, Sections 10(b) and 20(a) of the Exchange Act, and Sections 206 and 215 of the Investment Advisers Act of 1940 (the "Advisers Act"). Plaintiffs seek an unspecified amount of compensatory damages and rescission of their contracts with AllianceBernstein, including recovery of all fees paid to AllianceBernstein pursuant to such contracts. F-46 Since October 2003, forty-three additional lawsuits making factual allegations generally similar to those in the HINDO COMPLAINT were filed in various Federal and state courts against AllianceBernstein and certain other defendants, and others may be filed. Such lawsuits have asserted a variety of theories for recovery including, but not limited to, violations of the Securities Act, the Exchange Act, the Advisers Act, the Investment Company Act, the Employee Retirement Income Security Act of 1974,as amended ("ERISA"), certain state securities statutes and common law. All state court actions against AllianceBernstein either were voluntarily dismissed or removed to Federal court. In February 2004, the Judicial Panel on Multidistrict Litigation ("MDL Panel") transferred all Federal actions to the United States District Court for the District of Maryland ("Mutual Fund MDL"). All of the actions removed to the Federal court also were transferred to the Mutual Fund MDL. The plaintiffs in the removed actions have since moved for remand, and that motion is pending. In September 2004, plaintiffs filed consolidated amended complaints with respect to four claim types: mutual fund shareholder claims; mutual fund derivative claims; derivative claims brought on behalf of AllianceBernstein Holding; and claims brought under ERISA by participants in the Profit Sharing Plan for Employees of AllianceBernstein. All four complaints include substantially identical factual allegations, which appear to be based in large part on the SEC Order and the NYAG Assurance of Discontinuance (the "NYAG AoD"). The claims in the mutual fund derivative consolidated amended complaint are generally based on the theory that all fund advisory agreements, distribution agreements and 12b-1 plans between AllianceBernstein and the U.S. Funds should be invalidated, regardless of whether market timing occurred in each individual fund, because each was approved by fund trustees on the basis of materially misleading information with respect to the level of market timing permitted in funds managed by AllianceBernstein. The claims asserted in the other three consolidated amended complaints are similar to those that the respective plaintiffs asserted in their previous Federal lawsuits. All of these lawsuits seek an unspecified amount of damages. In February 2004, AllianceBernstein received (i) a subpoena duces tecum from the Office of the Attorney General of the State of West Virginia and (ii) a request for information from the Office of the State Auditor, Securities Commission, for the State of West Virginia ("WV Securities Commissioner") (subpoena and request together, the "Information Requests"). Both Information Requests required AllianceBernstein to produce documents concerning, among other things, any market timing or late trading in its sponsored mutual funds. AllianceBernstein responded to the Information Requests and has been cooperating fully with the investigation. In April 2005, a complaint entitled THE ATTORNEY GENERAL OF THE STATE OF WEST VIRGINIA V. AIM ADVISORS, INC., ET AL. ("Wvag Complaint") was filed against AllianceBernstein, AllianceBernstein Holding, and various other unaffiliated defendants. The WVAG COMPLAINT was filed in the Circuit Court of Marshall County, West Virginia by the Attorney General of the State of West Virginia. The WVAG COMPLAINT makes factual allegations generally similar to those in the HINDO COMPLAINT. In May 2005, defendants removed the WVAG COMPLAINT to the U.S. District Court for the Northern District of West Virginia. In July 2005, plaintiff moved to remand. In October 2005, the WVAG Complaint was transferred to the Mutual Fund MDL. In August 2005, the WV Securities Commissioner signed a "Summary Order to Cease and Desist, and Notice of Right to Hearing" addressed to AllianceBernstein and AllianceBernstein Holding. The Summary Order claims that AllianceBernstein and AllianceBernstein Holding violated the West Virginia Uniform Securities Act and makes factual allegations generally similar to those in the SEC Order and NYAG AoD. In January 2006, AllianceBernstein, AllianceBernstein Holding and various unaffiliated defendants filed a Petition for Writ of Prohibition and Order Suspending Proceedings in West Virginia state court seeking to vacate the Summary Order and for other relief. AXA Financial, AXA S.A. and AXA Equitable are named as defendants in the mutual fund shareholder complaint and the AllianceBernstein Holding unitholder derivative complaint. Claims have been asserted against all these companies that include both control person and direct liability. AXA Financial is named as a defendant in the mutual fund complaint and the ERISA complaint. As previously disclosed, AllianceBernstein recorded charges to income totaling $330 million during the second half of 2003 in connection with establishing the $250 million restitution fund and certain other matters. During 2005, AllianceBernstein paid $8 million related to market timing and has cumulatively paid $310 million related to these matters (excluding the WVAG COMPLAINT-related expenses). Revenue Sharing-Related Matters In June 2004, a purported class action complaint entitled AUCOIN, ET AL. V. ALLIANCE CAPITAL MANAGEMENT L.P., ET AL. ("AUCOIN COMPLAINT") was filed against AllianceBernstein, AllianceBernstein Holding, the General Partner, AXA Financial, AllianceBernstein Investments, Inc., a wholly-owned subsidiary of AllianceBernstein, certain current and former F-47 directors of the U.S. Funds, and unnamed Doe defendants. The AUCOIN COMPLAINT names the U.S. Funds as nominal defendants. The AUCOIN COMPLAINT was filed in the United States District Court for the Southern District of New York by an alleged shareholder of the AllianceBernstein Growth & Income Fund. The AUCOIN COMPLAINT alleges, among other things, (i) that certain of the defendants improperly authorized the payment of excessive commissions and other fees from U.S. Fund assets to broker-dealers in exchange for preferential marketing services, (ii) that certain of the defendants misrepresented and omitted from registration statements and other reports material facts concerning such payments, and (iii) that certain defendants caused such conduct as control persons of other defendants. The AUCOIN COMPLAINT asserts claims for violation of Sections 34(b), 36(b) and 48(a) of the Investment Company Act, Sections 206 and 215 of the Advisers Act, breach of common law fiduciary duties, and aiding and abetting breaches of common law fiduciary duties. Plaintiffs seek an unspecified amount of compensatory damages and punitive damages, rescission of their contracts with AllianceBernstein, including recovery of all fees paid to AllianceBernstein pursuant to such contracts, an accounting of all U.S. Fund-related fees, commissions and soft dollar payments, and restitution of all unlawfully or discriminatorily obtained fees and expenses. Since June 22, 2004, nine additional lawsuits making factual allegations substantially similar to those in the AUCOIN COMPLAINT were filed against AllianceBernstein and certain other defendants. All nine of the lawsuits (i) were brought as class actions filed in the United States District Court for the Southern District of New York, (ii) assert claims substantially identical to the Aucoin Complaint, and (iii) are brought on behalf of shareholders of U.S. Funds. In February 2005, plaintiffs filed a consolidated amended class action complaint (the "AUCOIN CONSOLIDATED AMENDED COMPLAINT") that asserts claims substantially similar to the AUCOIN COMPLAINT and the nine additional lawsuits referenced above. In October 2005, the District Court dismissed each of the claims set forth in the AUCOIN CONSOLIDATED AMENDED COMPLAINT, except for plaintiffs' claim under Section 36(b) of the Investment Company Act. In January 2006, the District Court granted defendants' motion for reconsideration and dismissed the remaining claim under Section 36(b) of the Investment Company Act. Plaintiffs have moved for leave to amend their consolidated complaint. ----------------------------------- Although the outcome of litigation generally cannot be predicted with certainty, management believes that, except as otherwise noted, the ultimate resolution of the litigations described above involving AXA Equitable and/or its subsidiaries should not have a material adverse effect on the consolidated financial position of the Company. Except as noted above, management cannot make an estimate of loss, if any, or predict whether or not any of such other litigations described above will have a material adverse effect on the Company's consolidated results of operations in any particular period. In addition to the matters previously reported and those described above, AXA Equitable and its subsidiaries are involved in various legal actions and proceedings in connection with their businesses. Some of the actions and proceedings have been brought on behalf of various alleged classes of claimants and certain of these claimants seek damages of unspecified amounts. While the ultimate outcome of such matters cannot be predicted with certainty, in the opinion of management no such matter is likely to have a material adverse effect on the Company's consolidated financial position or results of operations. However, it should be noted that the frequency of large damage awards, including large punitive damage awards that bear little or no relation to actual economic damages incurred by plaintiffs in some jurisdictions, continues to create the potential for an unpredictable judgment in any given matter. 17) LEASES The Company has entered into operating leases for office space and certain other assets, principally information technology equipment and office furniture and equipment. Future minimum payments under noncancelable operating leases for 2006 and the four successive years are $160.6 million, $153.3 million, $145.1 million, $130.9 million, $126.4 million and $647.0 million thereafter. Minimum future sublease rental income on these noncancelable operating leases for 2006 and the four successive years is $5.4 million, $3.8 million, $3.1 million, $2.5 million, $2.5 million and $15.8 million thereafter. At December 31, 2005, the minimum future rental income on noncancelable operating leases for wholly owned investments in real estate for 2006 and the four successive years is $104.1 million, $105.4 million, $113.8 million, $112.6 million, $112.6 million and $997.9 million thereafter. F-48 The Company has entered into capital leases for certain information technology equipment. Future minimum payments under noncancelable capital leases for 2006 and the four successive years are $0.5 million, $0.5 million, $0.3 million and $0.2 million. 18) INSURANCE GROUP STATUTORY FINANCIAL INFORMATION AXA Equitable is restricted as to the amounts it may pay as dividends to AXA Financial. Under the New York Insurance Law, a domestic life insurer may, without prior approval of the Superintendent; pay a dividend to its shareholders not exceeding an amount calculated based on a statutory formula. This formula would permit AXA Equitable to pay shareholder dividends not greater than $511.1 million during 2006. Payment of dividends exceeding this amount requires the insurer to file notice of its intent to declare such dividends with the Superintendent who then has 30 days to disapprove the distribution. For 2005, 2004 and 2003, the Insurance Group statutory net income totaled $780.4 million, $571.4 million and $549.4 million, respectively. Statutory surplus, capital stock and Asset Valuation Reserve ("AVR") totaled $6,241.7 million and $5,201.5 million at December 31, 2005 and 2004, respectively. In 2005, 2004 and 2003, respectively, AXA Equitable paid shareholder dividends of $500.0 million, $500.0 million and $400.0 million. At December 31, 2005, the Insurance Group, in accordance with various government and state regulations, had $27.5 million of securities deposited with such government or state agencies. At December 31, 2005 and for the year then ended, there were no differences in net income and capital and surplus resulting from practices prescribed and permitted by the State of New York and those prescribed by NAIC Accounting Practices and Procedures effective at December 31, 2005. Accounting practices used to prepare statutory financial statements for regulatory filings of stock life insurance companies differ in certain instances from GAAP. The differences between statutory surplus and capital stock determined in accordance with Statutory Accounting Principles ("SAP") and total shareholder's equity under GAAP are primarily: (a) the inclusion in SAP of an AVR intended to stabilize surplus from fluctuations in the value of the investment portfolio; (b) future policy benefits and policyholders' account balances under SAP differ from GAAP due to differences between actuarial assumptions and reserving methodologies; (c) certain policy acquisition costs are expensed under SAP but deferred under GAAP and amortized over future periods to achieve a matching of revenues and expenses; (d) under SAP, income taxes are provided on the basis of amounts currently payable with provisions made for deferred amounts that reverse within one year while under GAAP, deferred taxes are recorded for temporary differences between the financial statements and tax basis of assets and liabilities where the probability of realization is reasonably assured; (e) the valuation of assets under SAP and GAAP differ due to different investment valuation and depreciation methodologies, as well as the deferral of interest-related realized capital gains and losses on fixed income investments; (f) the valuation of the investment in AllianceBernstein and AllianceBernstein Holding under SAP reflects a portion of the market value appreciation rather than the equity in the underlying net assets as required under GAAP; (g) the provision for future losses of the discontinued Wind-Up Annuities business is only required under GAAP; (h) reporting the surplus notes as a component of surplus in SAP but as a liability in GAAP; (i) computer software development costs are capitalized under GAAP but expensed under SAP; and (j) certain assets, primarily pre-paid assets, are not admissible under SAP but are admissible under GAAP. The following reconciles the Insurance Group's statutory change in surplus and capital stock and statutory surplus and capital stock determined in accordance with accounting practices prescribed by the NYID with net earnings and equity on a GAAP basis. F-49
2005 2004 2003 ----------------- ----------------- ----------------- (IN MILLIONS) Net change in statutory surplus and capital stock.................................... $ 779.6 $ 196.8 $ 43.4 Change in AVR...................................... 260.6 528.1 152.2 ----------------- ----------------- ----------------- Net change in statutory surplus, capital stock and AVR.......................................... 1,040.2 724.9 195.6 Adjustments: Future policy benefits and policyholders' account balances............................... (51.9) (398.8) (245.7) DAC.............................................. 598.0 529.2 556.1 Deferred income taxes............................ 227.6 122.5 30.9 Valuation of investments......................... 40.0 10.1 39.6 Valuation of investment subsidiary............... (1,278.3) (460.3) (321.6) Change in fair value of guaranteed minimum income benefit reinsurance contracts.......... 42.6 61.0 (91.0) Shareholder dividends paid....................... 500.0 500.0 400.0 Changes in non-admitted assets................... .5 (74.7) (35.1) Other, net....................................... (75.8) (98.9) (2.1) GAAP adjustments for Wind-up Annuities........... 30.9 14.9 (2.3) ----------------- ----------------- ----------------- Net Earnings of the Insurance Group................ $ 1,073.8 $ 929.9 $ 524.4 ================= ================= ================= DECEMBER 31, --------------------------------------------------------- 2005 2004 2003 ----------------- ----------------- ------------------ (IN MILLIONS) Statutory surplus and capital stock................ $ 5,111.1 $ 4,331.5 $ 4,134.7 AVR................................................ 1,130.6 870.0 341.9 ----------------- ----------------- ------------------ Statutory surplus, capital stock and AVR........... 6,241.7 5,201.5 4,476.6 Adjustments: Future policy benefits and policyholders' account balances............................... (1,934.0) (1,882.1) (1,483.3) DAC.............................................. 7,557.3 6,813.9 6,290.4 Deferred income taxes............................ (1,294.6) (1,770.4) (1,729.8) Valuation of investments......................... 1,281.6 2,237.6 2,196.3 Valuation of investment subsidiary............... (3,251.6) (1,973.3) (1,513.0) Fair value of guaranteed minimum income benefit reinsurance contracts................. 132.6 90.0 29.0 Non-admitted assets.............................. 1,056.0 1,055.5 1,130.2 Issuance of surplus notes........................ (524.8) (599.7) (599.6) Other, net....................................... 258.3 147.9 77.7 GAAP adjustments for Wind-up Annuities........... (80.6) (96.4) (103.9) ----------------- ----------------- ------------------ Equity of the Insurance Group...................... $ 9,441.9 $ 9,224.5 $ 8,770.6 ================= ================= ==================
19) BUSINESS SEGMENT INFORMATION The Company's operations consist of Insurance and Investment Services segments. The Company's management evaluates the performance of each of these segments independently and allocates resources based on current and future requirements of each segment. The Insurance segment offers a variety of traditional, variable and interest-sensitive life insurance products, disability income, annuity products, mutual funds, and other investment products to individuals and small groups. It also administers traditional participating group annuity contracts with conversion features, generally for corporate qualified pension plans, and association plans which provide full service retirement programs for individuals affiliated with F-50 professional and trade associations. This segment includes Separate Accounts for individual insurance and annuity products. The Investment Services segment is principally comprised of the investment management business of AllianceBernstein. AllianceBernstein provides diversified investment management and related services globally to a broad range of clients including: (a) institutional clients, including pension funds, endowment funds and domestic and foreign financial institutions and governments, (b) private clients, including high net worth individuals, trusts and estates, charitable foundations and other entities, by means of separately managed accounts, hedge funds, mutual funds and other investment vehicles, (c) individual investors, principally through a broad line of mutual funds, and (d) institutional investors by means of in-depth research, portfolio strategy, trading and other services. This segment also includes institutional Separate Accounts principally managed by AllianceBernstein that provide various investment options for large group pension clients, primarily defined benefit and contribution plans, through pooled or single group accounts. Intersegment investment advisory and other fees of approximately $123.7 million, $118.4 million and $103.0 million for 2005, 2004 and 2003, respectively, are included in total revenues of the Investment Services segment. The following tables reconcile segment revenues and earnings from continuing operations before income taxes to total revenues and earnings as reported on the consolidated statements of earnings and segment assets to total assets on the consolidated balance sheets, respectively.
2005 2004 2003 ----------------- ----------------- ------------------ (IN MILLIONS) SEGMENT REVENUES: Insurance.......................................... $ 5,771.2 $ 5,447.7 $ 4,734.4 Investment Services................................ 3,265.0 3,031.5 2,738.5 Consolidation/elimination.......................... (84.7) (82.8) (70.4) ----------------- ----------------- ------------------ Total Revenues..................................... $ 8,951.5 $ 8,396.4 $ 7,402.5 ================= ================= ================== SEGMENT EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND MINORITY INTEREST: Insurance.......................................... $ 1,120.8 $ 946.3 $ 631.6 Investment Services................................ 924.2 728.8 318.6 Consolidation/elimination.......................... - (.9) - ----------------- ----------------- ------------------ Total Earnings from Continuing Operations before Income Taxes and Minority Interest....... $ 2,045.0 $ 1,674.2 $ 950.2 ================= ================= ================== DECEMBER 31, -------------------------------------------------------- 2005 2004 2003 ----------------- ----------------- ------------------ (IN MILLIONS) SEGMENT ASSETS: Insurance.......................................... $ 118,803.7 $ 110,141.1 $ 98,822.1 Investment Services................................ 15,161.4 14,326.3 15,410.1 Consolidation/elimination.......................... 2.0 26.7 33.1 ----------------- ----------------- ------------------ Total Assets....................................... $ 133,967.1 $ 124,494.1 $ 114,265.3 ================= ================= ==================
F-51 20) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The quarterly results of operations for 2005 and 2004 are summarized below:
THREE MONTHS ENDED ------------------------------------------------------------------------------ MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 ----------------- ----------------- ------------------ ------------------ (IN MILLIONS) 2005 ---- Total Revenues................ $ 2,212.5 $ 2,224.2 $ 2,151.4 $ 2,363.4 ================= ================= ================== ================== Earnings from Continuing Operations.................. $ 265.1 $ 278.5 $ 281.6 $ 233.4 ================= ================= ================== ================== Net Earnings.................. $ 265.0 $ 278.6 $ 296.8 $ 233.4 ================= ================= ================== ================== 2004 ---- Total Revenues................ $ 2,131.8 $ 2,027.0 $ 2,100.4 $ 2,165.7 ================= ================= ================== ================== Earnings from Continuing Operations....... $ 227.4 $ 269.3 $ 204.6 $ 192.5 ================= ================= ================== ================== Net Earnings.................. $ 226.6 $ 270.5 $ 220.2 $ 212.6 ================= ================= ================== ==================
21) ACCOUNTING FOR SHARE-BASED COMPENSATION AXA Financial sponsors a stock incentive plan for employees of AXA Equitable. AllianceBernstein sponsors its own stock option plans for certain employees. In January 2001, certain employees exchanged AXA ADR options for tandem Stock Appreciation Rights and at-the-money AXA ADR options of equivalent intrinsic value. The maximum obligation for the Stock Appreciation Rights is $73.3 million, based upon the underlying price of AXA ADRs at January 2, 2001. The Company recorded an increase in the Stock Appreciation Rights liability of $31.2 million, $14.3 million and $12.0 million for 2005, 2004 and 2003, respectively, primarily reflecting the variable accounting for the Stock Appreciation Rights based on the change in the market value of AXA ADRs in 2005, 2004 and 2003. At December 31, 2005, the Stock Appreciation Rights liability was $50.9 million. The Company has elected to continue to account for stock-based compensation using the intrinsic value method prescribed in APB No. 25. Accordingly, no compensation expense for employee stock option awards is recognized in the consolidated statements of earnings for the years 2005, 2004, and 2003, respectively, as all are for a fixed number of shares and their exercise price equals the market value of the underlying shares on the date of grant. The following table illustrates the effect on net income had compensation expense for employee stock option awards been measured and recognized by AXA Financial Group under the fair-value-based method of SFAS No. 123.
2005 2004 2003 ----------------- ----------------- ------------------- (IN MILLIONS) Net income, as reported............................ $ 1,073.8 $ 929.9 $ 524.4 Less: total stock-based employee compensation expense determined under fair value method for all awards, net of income tax benefit........... (23.2) (21.4) (35.8) ----------------- ----------------- ------------------- Pro Forma Net Earnings............................. $ 1,050.6 $ 908.5 $ 488.6 ================= ================= ===================
For purpose of preparing the SFAS 123 pro-forma disclosures above, the Black-Scholes-Merton formula was used by the Company to estimate the fair values of the option awards. Shown below are the relevant input assumptions used to derive those values. For the 2005 awards of options to purchase AXA ordinary shares and AXA ADRs, implied volatilities F-52 were considered in determining the stock price volatility assumption and the expected dividend was calculated as a yield. With respect to the valuation of options to purchase AXA ADRs, these methodologies each constitute a change in accounting estimate. The assumptions applied in previous years primarily considered historical realized stock price volatility and defined the expected dividend as an annual amount. These changes are consistent with the fair value measurement objectives of SFAS Nos. 123 and 123(R) and, accordingly, will be applied prospectively in determining the fair values of employee stock options to be measured and accounted for in accordance with SFAS 123(R).
AXA AXA Financial AllianceBernstein ----------- ----------------------------- ------------------------ 2005 2005 2004 2003 2005 2004 2003 ----------- ---------- ---------- ------- -------- ------- ------- Dividend yield.............. 3.15% 3.01% 2.24% 2.48% 6.2% 3.5% 6.1% Expected volatility......... 25% 25% 43% 46% 31% 32% 32% Risk-free interest rate..... 3.09% 4.27% 2.86% 2.72% 3.7% 4.0% 3.0% Expected life in years...... 5 5 5 5 3 5 5 Weighted average fair value per option at grant date................ $4.30 $4.85 $6.94 $4.39 $7.04 $8.00 $5.96
A summary of the activity in the option shares of AXA Financial and AllianceBernstein's option plans follows, including information about options outstanding and exercisable at December 31, 2005. In addition to the activity presented below, approximately 3.5 million options to purchase AXA ordinary shares were granted on March 29, 2005 under the Stock Option Plan at an exercise price of 20.87 euros. These awards have a contractual life of 10 years; none are exercisable at December 31, 2005.
AXA FINANCIAL ALLIANCEBERNSTEIN ----------------------------------- --------------------------------- WEIGHTED WEIGHTED AVERAGE AVERAGE AXA ADRS EXERCISE UNITS EXERCISE (IN MILLIONS) PRICE (IN MILLIONS) PRICE ------------------ ---------------- --------------- ----------------- Balance at January 1, 2003....... 35.3 $25.14 16.4 $34.92 Granted........................ 9.1 $12.60 .1 $35.01 Exercised...................... (1.7) $7.85 (1.2) $17.26 Forfeited...................... (1.8) $25.16 (1.5) $43.27 ------------------ --------------- Balance at December 31, 2003..... 40.9 $23.04 13.8 $35.55 Granted........................ 7.2 $20.66 .1 $33.00 Exercised...................... (2.5) $14.82 (2.5) $18.43 Forfeited...................... (1.6) $23.74 (1.8) $46.96 ------------------ --------------- Balance at December 31, 2004..... 44.0 $23.03 9.6 $37.82 Granted........................ 1.8 $26.77 - $45.45 Exercised...................... (5.7) $15.58 (1.7) $24.13 Forfeited...................... (1.5) $29.22 (.4) $47.10 ------------------ --------------- Balance at December 31, 2005 .... 38.6 $24.06 7.5 $40.45 ================== ===============
(1) The 2005 AllianceBernstein grants totalled 17,604 Units. F-53 Information about options outstanding and exercisable at December 31, 2005 follows:
OPTIONS OUTSTANDING OPTIONS EXERCISABLE -------------------------------------------------- ------------------------------------- WEIGHTED AVERAGE WEIGHTED WEIGHTED RANGE OF NUMBER REMAINING AVERAGE NUMBER AVERAGE EXERCISE OUTSTANDING CONTRACTUAL EXERCISE EXERCISABLE EXERCISE PRICES (IN MILLIONS) LIFE (YEARS) PRICE (IN MILLIONS) PRICE -------------------- ----------------- ---------------- --------------- ------------------ ---------------- AXA ADRs -------------------- $ 6.33 - $ 8.97 .1 .61 $ 8.13 .1 $ 8.13 $10.13 - $15.12 7.4 6.45 $12.67 4.3 $12.79 $15.91 - $22.84 12.3 6.63 $19.62 8.0 $19.06 $25.96 - $32.86 14.5 3.57 $30.16 12.1 $30.64 $35.85 4.3 3.43 $35.85 4.3 $35.85 ----------------- ------------------ $ 6.33 - $35.85 38.6 5.08 $24.06 28.8 $24.06 ================= ================== AllianceBernstein Holding Units -------------------- $12.56 - $18.47 .6 1.59 $16.28 .6 $16.28 $25.63 - $30.25 1.2 3.54 $28.61 1.2 $28.62 $32.52 - $48.50 2.8 5.96 $39.62 2.0 $41.85 $50.15 - $50.56 1.6 5.92 $50.25 1.3 $50.25 $51.10 - $58.50 1.3 4.95 $53.77 1.3 $53.77 ----------------- ------------------ $12.56 - $58.50 7.5 5.02 $40.45 6.4 $40.79 ================= ==================
The Company's ownership interest in AllianceBernstein will continue to be reduced upon the exercise of unit options granted to certain AllianceBernstein employees. Options are exercisable over periods of up to ten years. In 1997, AllianceBernstein Holding established a long-term incentive compensation plan under which grants are made to key employees for terms established by AllianceBernstein Holding at the time of grant. These awards include options, restricted AllianceBernstein Holding units and phantom restricted AllianceBernstein Holding units, performance awards, other AllianceBernstein Holding unit based awards, or any combination thereof. At December 31, 2005, approximately 10.9 million AllianceBernstein Holding units of a maximum 41.0 million units were subject to options granted and 0.2 million AllianceBernstein Holding units were subject to awards made under this plan. 22) RELATED PARTY TRANSACTIONS The Company reimburses AXA Financial for expenses relating to the Excess Retirement Plan, Supplemental Executive Retirement Plan and certain other employee benefit plans that provide participants with medical, life insurance, and deferred compensation benefits. Such reimbursement was based on the cost to AXA Financial of the benefits provided which totaled $57.2 million and $55.0 million, respectively, for 2005 and 2004. The Company paid $695.0 million and $658.8 million, respectively, of commissions and fees to AXA Distribution and its subsidiaries for sales of insurance products for 2005 and 2004. The Company charged AXA Distribution's subsidiaries $324.4 million and $293.1 million, respectively, for their applicable share of operating expenses for 2005 and 2004, pursuant to the Agreements for Services. In September 2001, AXA Equitable loaned $400.0 million to AXA Insurance Holding Co. Ltd., a Japanese subsidiary of AXA. This investment has an interest rate of 5.89% and matures on June 15, 2007. All payments, including interest payable semi-annually, are guaranteed by AXA. Both AXA Equitable and AllianceBernstein, along with other AXA affiliates, participate in certain intercompany cost sharing and service agreements that include technology and professional development arrangements. Payments by AXA Equitable and AllianceBernstein to AXA under such agreements totaled approximately $32.8 million, $30.2 million and $16.7 million in 2005, 2004 and 2003, respectively. Payments by AXA and AXA affiliates to AXA Equitable under such agreements totaled $30.4 million, $38.9 million and $32.5 million in 2005, 2004 and 2003, respectively. F-54 In 2003, AXA Equitable entered into a reinsurance agreement with AXA Financial Reinsurance Company (Bermuda), LTD ("AXA Bermuda"), an indirect, wholly owned subsidiary of AXA Financial, to cede certain term insurance policies written after December 2002. AXA Equitable ceded $57.9 million, $28.6 million and $9.0 million of premiums and $26.3 million, $16.4 million and $2.8 million of reinsurance reserves to AXA Bermuda in 2005, 2004 and 2003, respectively. In 2004, as a result of AXA Financial's acquisition of MONY, the Company restructured certain operations to reduce expenses and recorded pre-tax provisions of $45.6 million related to severance and $33.0 million related to the write-off of capitalized software. During 2005 and 2004, total severance payments made to employees totaled $19.2 million and $5.0 million, respectively. In 2005, AXA Financial issued a note to AXA-Equitable in the amount of $325.0 million with an interest rate of 6.00% and a maturity date of December 1, 2035. Interest on this note is payable semi-annually. Commissions, fees and other income includes certain revenues for services provided to mutual funds managed by AllianceBernstein described below:
2005 2004 2003 ----------------- ----------------- ------------------ (IN MILLIONS) Investment advisory and services fees.............. $ 729.3 $ 746.6 $ 748.2 Distribution revenues.............................. 397.8 447.3 436.0 Shareholder servicing fees......................... 99.3 116.0 126.4 Other revenues..................................... 8.0 8.8 11.4 Brokerage.......................................... 2.4 4.2 4.4
F-55 PART C OTHER INFORMATION ----------------- Item 24. Financial Statements and Exhibits (a) Financial Statements included in Part B. 1. Separate Account Nos. 3 (Pooled), 4 (Pooled), 10 (Pooled) and 13 (Pooled) (The Alliance Mid Cap Growth, Common Stock, Balanced and Bond Funds): - Report of Independent Registered Public Accounting Firm - PricewaterhouseCoopers LLP 2. Separate Account No. 3 (Pooled): - Statements of Assets and Liabilities, December 31, 2005 - Statements of Operations and Changes in Net Assets for the Years Ended December 31, 2005 and 2004 - Portfolio of Investments, December 31, 2005 3. Separate Account No. 4 (Pooled): - Statements of Assets and Liabilities, December 31, 2005 - Statements of Operations and Changes in Net Assets for the Years Ended December 31, 2005 and 2004 - Portfolio of Investments, December 31, 2005 4. Separate Account No. 10 (Pooled): - Statements of Assets and Liabilities, December 31, 2005 - Statements of Operations and Changes in Net Assets for the Years Ended December 31, 2005 and 2004 - Portfolio of Investments, December 31, 2005 5. Separate Account No. 13 (Pooled): - Statements of Assets and Liabilities, December 31, 2005 - Statements of Operations and Changes in Net Assets for the Years Ended December 31, 2005 and 2004 - Portfolio of Investments, December 31, 2005 6. Separate Account No. 66: - Report of Independent Registered Public Accounting Firm - PricewaterhouseCoopers LLP - Statement of Assets and Liabilities, December 31, 2005 - Statement of Operations for the Year Ended December 31, 2005 - Statement of Changes in Net Assets for the Years Ended December 31, 2005 and 2004 - Notes to Financial Statements 7. Separate Account Nos. 3 (Pooled), 4 (Pooled), 10 (Pooled), and 13 (Pooled) - Notes to Financial Statements C-1 8. AXA Equitable Life Insurance Company: - Report of Independent Registered Public Accounting Firm - PricewaterhouseCoopers LLP - Consolidated Balance Sheets, December 31, 2005 and 2004 - Consolidated Statements of Earnings for the Years Ended December 31, 2005, 2004 and 2003 - Consolidated Statements of Shareholder's Equity Years Ended December 31, 2005, 2004 and 2003 - Consolidated Statements of Cash Flows for the Years Ended December 31, 2005, 2004 and 2003 - Notes to Consolidated Financial Statements 9. AllianceBernstein L.P.: - Report of Independent Registered Public Accounting Firm - KPMG LLP - Consolidated Statements of Financial Condition as of December 31, 2005 and 2004; - Consolidated Statements of Income for the Years Ended December 31, 2005, 2004 and 2003; - Consolidated Statements of Changes in Partners' Capital and Comprehensive Income for the Years Ended December 31, 2005, 2004 and 2003; - Consolidated Statements of Cash Flows for the Years Ended December 31, 2005, 2004 and 2003; - Notes to Consolidated Financial Statements; - Report on Management's Assessment of the Effectiveness of Internal Control Over Financial Reporting as of December 31, 2005 and the Effectiveness of Internal Control Over Financial reporting as of December 31, 2005. 10. AllianceBernstein Holding L.P.: - Report of Independent Registered Public Accounting Firm - KPMG LLP - Statements of Financial Condition as of December 31, 2005 and 2004; - Statements of Income for the Years Ended December 31, 2005, 2004 and 2003; - Statements of Changes in Partners' Capital and Comprehensive Income for the Years Ended December 31, 2005, 2004 and 2003; - Statements of Cash Flows for the Years Ended December 31, 2005, 2004 and 2003; - Notes to Financial Statements. - Report on Management's Assessment of the Effectiveness of Internal Control Over Financial Reporting as of December 31, 2005 and the Effectiveness of Internal Control Over Financial reporting as of December 31, 2005. (b) Exhibits. The following exhibits correspond to those required by paragraph(b) of item 24 as to exhibits in Form N-4: 1. Resolutions of the Board of Directors of The Equitable Life Assurance Society of the United States ("Equitable") authorizing the establishment of Separate Account Nos. 3, 4 and 10 and additional similar separate accounts, incorporated herein by reference to Exhibit 1 to Post-Effective Amendment No. 2 to Registration No. 2-91983, filed on April 14, 1986. 2. Not Applicable. 3. (a) Investment Advisory Agreement between Equitable and Equitable Investment Management Corporation dated October 31, 1983, incorporated herein by reference to Exhibit 4 to Post-Effective Amendment No. 2 to Registration No. 2-91983, filed on April 14, 1986. (b) Investment Advisory and Management Agreement by and between Alliance Capital Management L.P., Alliance Corporate Finance Group Incorporated, an indirect wholly owned subsidiary of Alliance, and The Equitable Life Assurance Society of the United States, incorporated by reference to Exhibit No. 3(b) to Registration Statement No. 33-76030, filed on March 3, 1994. (c) Participation Agreement among EQ Advisors Trust, The Equitable Life Assurance Society of the United States, Equitable Distributors, Inc. and EQ Financial Consultants, Inc. (now AXA Advisors, LLC), dated as of the 14th day of April 1997, incorporated by reference to the Registration Statement of EQ Advisors Trust (File No. 333-17217) on Form N-1A, filed August 28, 1997. (d) Sales Agreement, dated as of January 1, 1995, by and among Equico Securities, Inc. (now AXA Advisors, LLC), Equitable, Separate Account A, Separate Account No. 301 and Separate Account No. 51, incorporated by reference to Exhibit No. 3(d) to Registration Statement No. 33-76030, filed on April 24, 1995. (e) Distribution Agreement for services by The Equitable Life Assurance Society of the United States to AXA Network, LLC, and its subsidiaries dated January 1, 2000, incorporated by reference to Exhibit No. 3(d) to Registration Statement File No. 33-58950, filed on April 19, 2001. (f) Distribution Agreement for services by AXA Network, LLC and its subsidiaries to The Equitable Life Assurance Society of the United States dated January 1, 2000. Incorporated by reference to Exhibit No. 3(e) to Registration Statement File No. 33-58950 filed on April 19, 2001. (g) Form of Participation Agreement among AXA Premier VIP Trust, The Equitable Life Assurance Society of the United States, Equitable Distributors, Inc., AXA Distributors LLC, and AXA Advisors, LLC, incorporated by reference to Exhibit No. 8(b) to Registration Statement File No. 333-60730, filed on December 5, 2001. (h) General Agent Sales Agreement dated January 1, 2000 between The Equitable Life Assurance Society of the United States and AXA Network, LLC and its subsidiaries, incorporated herein by reference to Exhibit 3(h) to the Registration Statement on Form N-4, File No. 2-30070, filed April 19, 2004. (i) First Amendment General Agent Sales Agreement dated January 1, 2000 between The Equitable Life Assurance Society of the United States and AXA Network, LLC and its subsidiaries, incorporated herein by reference to Exhibit 3(i) to the Registration Statement on Form N-4, File No. 2-30070, filed April 19, 2004. (j) Second Amendment to General Agent Sales Agreement dated January 1, 2000 between The Equitable Life Assurance Society of the United States and AXA Network, LLC and its subsidiaries, incorporated herein by reference to Exhibit 3(j) to the Registration Statement on Form N-4, File No. 2-30070, filed April 19, 2004. 4. (a)1 Group Annuity Contract AC 5000-83T (No. 15,740) between Equitable and United States Trust Company of New York as Trustee under Retirement Investment Account Master Retirement Trust, incorporated herein by reference to Exhibit 6(a)1 to Post-Effective Amendment No. 2 to Registration No. 2-91983 filed on April 14, 1986. C-2 (a)2 Riders 1, 2, 3, 4, 5, 6 and 7 to Group Annuity Contract AC 5000-83T (No. 15,740) between Equitable and United States Trust Company of New York as Trustee under Retirement Investment Account Master Retirement Trust, as executed, incorporated herein by reference to Exhibit 6(a)2 to Post-Effective Amendment No. 4 to Registration No. 2-91983 filed on April 28, 1988. (a)3 Form of Rider 8 to Group Annuity Contract AC 5000-83T (No. 15,740) between Equitable and United States Trust Company of New York as Trustee under Retirement Investment Account Master Retirement Trust, incorporated herein by reference to Exhibit 6(a)3 to Post-Effective Amendment No. 8 to Registration No. 2-91983, filed on February 25, 1992. (a)4 Form of Rider 9 to Group Annuity Contract AC 5000-83T between Equitable and United States Trust Company of New York as Trustee under Retirement Investment Account Master Retirement Trust, incorporated by reference to Exhibit No. 4(a)4 to Registration Statement No. 33-76030, filed on March 3, 1994. (b)1 Group Annuity Contract AC 5000-83E (No. 15,739) between Equitable and United States Trust Company of New York as Trustee under Retirement Investment Account Retirement Trust, incorporated herein by reference to Exhibit 6(b)1 to Post-Effective Amendment No. 2 to Registration No. 2-91983, filed on April 14, 1986. (b)2 Riders l, 2, 3, 4, 5, 6 and 7 to Group Annuity Contract AC 5000-83E (No. 15,739) between Equitable and United States Trust Company of New York as Trustee under Retirement Investment Account Retirement Trust, as executed, incorporated herein by reference to Exhibit 6(b)2 to Post-Effective Amendment No. 2 to Registration No. 2-91983, filed on April 14, 1986. (b)3 Form of Rider 8 to Group Annuity Contract AC 5000-83E (No. 15,739) between Equitable and United States Trust Company of New York, as Trustee under Retirement Investment Account Master Retirement Trust, incorporated herein by reference to Exhibit 6(b)3 to Post-Effective Amendment No. 8 to Registration No. 2-91983, filed on February 25, 1992. (b)4 Form of Rider 9 to Group Annuity Contract AC 5000-83E between Equitable and United States Trust Company of New York, as Trustee under Retirement Investment Account Master Retirement Trust, incorporated by reference to Exhibit No. 4(b)4 to Registration Statement No. 33-76030, filed on March 3, 1994. (c)1 Retirement Investment Account Master Retirement Trust effective as of January 1, 1979, incorporated herein by reference to Exhibit 6(c)1 to Post-Effective Amendment No. 2 to Registration No. 2-91983, filed on April 14, 1986. (c)2 Amendment to the Retirement Investment Account Master Retirement Trust effective July 1, 1984, incorporated herein by reference to Exhibit 6(c)3 to Post-Effective Amendment No. 2 to Registration No. 2-9983, filed on April 14, 1986. C-3 (c)3 Revised Retirement Investment Account Master Retirement Trust effective as of March 1, 1990, incorporated herein by reference to Exhibit 6(c)3 to Post-Effective Amendment No. 6 to Registration No. 2-91983, filed on April 27, 1990. (c)4 Form of Restated Retirement Investment Account Master Retirement Trust as submitted to the Internal Revenue Service, incorporated herein by reference to Exhibit 6(c)4 to Post-Effective Amendment No. 8 to Registration No. 2-91983, filed on February 25, 1992. 5. Not applicable. 6. (a) Copy of the Restated Charter of Equitable, as amended January 1, 1997, incorporated by reference to Exhibit No. 6(a) to Registration Statement No. 33-76030 on April 28, 1997. (b) Restated Charter of AXA Equitable, as amended December 6, 2004, incorporated herein by reference to Exhibit No. 3.2 to Form 10-K, (File No. 000-20501), filed on March 31, 2005. (c) By-Laws of Equitable, as amended November 21, 1996, as amended January 1, 1997, incorporated by reference to Exhibit No. 6(b) to Registration Statement No. 33-76030 on April 28, 1997. (d) By-Laws of AXA Equitable, as amended September 7, 2004, incorporated herein by reference to Exhibit No. 6.(c) to Registration Statement on Form N-4, (File No. 333-05593), filed on April 20, 2006. 7. Not applicable. 8. (a) Retirement Investment Account Enrollment Forms - Including Participation and Enrollment Agreements, incorporated herein by reference to Exhibit 7(a) to Post-Effective Amendment No. 2 to Registration No. 2-91983, filed on April 14, 1986. (b)(1) Supplementary Agreement to Master Retirement Trust Participation Agreement, incorporated herein by reference to Exhibit 7(b)(1) to Post-Effective Amendment No. 2 to Registration No. 2-91983, filed on April 14, 1986. (b)(2) Supplementary Agreement B to Master Retirement Trust Participation Agreement (RIA Loans), incorporated herein by reference to Exhibit 7(b)(2) to Post-Effective Amendment No. 4 to Registration No. 2-91983, filed on April 28, 1988. (b)(3) Form of Supplementary Agreement A to Master Retirement Trust Participation Agreement (RIA Partial Funding), as amended, incorporated herein by reference to Exhibit 7(b)(3) to Post-Effective Amendment No. 4 to Registration No. 2-91983, filed on April 30, 1991. C-4 (b)(4) Form of Supplementary Agreement to Master Retirement Trust Participation Agreement (The Bond Account), incorporated herein by reference to Exhibit 7(b)(4) to Post-Effective Amendment No. 8 to Registration No. 2-91983, filed on April 14, 1986. (c) Basic Installation Information Form, dated May, 1989, incorporated herein by reference to Exhibit 7(c) to Post-Effective Amendment No. 9 to Registration Statement No. 2-91983, filed on April 24, 1992. (d) RIA Installation Agreement, dated May, 1989, incorporated herein by reference to Exhibit 7(d) to Post-Effective Amendment No. 9 to Registration No. 2-91983, filed on April 24, 1992. (e) Form of Participation Agreement among EQ Advisors Trust, Equitable, AXA Distributors LLC and AXA Advisors, LLC, incorporated herein by reference to Exhibit 23.(h)(4)(ix) to Post-Effective Amendment No. 27 to the Registration Statement on Form N-1A to the Registration Statement of EQ Advisors Trust on Form N-1A (File Nos. 33-17217 and 811-07953), filed on January 15, 2004. 9. (a) Opinion and consent of Herbert P. Shyer, Executive Vice President and General Counsel of Equitable Life, dated August 28, 1984, incorporated herein by reference to Exhibit 12(a) to Pre-Effective Amendment No. l to Registration No. 2-91983, filed on August 28, 1984. (b) Opinion and consent of Herbert P. Shyer, Executive Vice President and General Counsel of Equitable, dated April 14, 1986, incorporated herein by reference to Post-Effective Amendment No. 2 to Registration No. 2-91983, filed on April 14, 1986. (c) Opinion and consent of Melvin S. Altman, Esq., Vice President and Associate General Counsel of Equitable, incorporated herein by reference to Post-Effective Amendment No. 9 to Registration No. 2-91983, filed on April 24, 1992. (d) Opinion and consent of Hope E. Rosenbaum, Esq., Vice President and Counsel of Equitable, incorporated by reference to Exhibit No. 9(d) to Registration Statement No. 33-76030, filed on March 3, 1994. (e) Opinion and Consent of Robin Wagner, Esq., Vice President and Counsel previously filed with this Registration Statement File No. 333-59404 on April 24, 2001. (f) Opinion and Consent of Dodie Kent, Vice President and Counsel of AXA Equitable, as to the legality of the Securities being registered previously filed with this Registration Statement, File No. 333-59404 on April 27, 2004. 10. (a)(i) Consent of PricewaterhouseCoopers LLP. (a)(ii) Consent of KPMG LLP. (b) Powers of Attorney, incorporated herein by reference to Exhibit 10.(f) to Registration Statement File No. 333-05593 on Form N-4, filed on April 20, 2005. (c) Powers of Attorney are filed herewith. 11. Not applicable. 12. Not applicable. 13. Not applicable. C-5 Item 25. Directors and Officers of AXA Equitable. Set forth below is information regarding the directors and principal officers of AXA Equitable. AXA Equitable's address is 1290 Avenue of Americas, New York, New York 10104. The business address of the persons whose names are preceded by an asterisk is that of AXA Equitable. POSITIONS AND NAME AND PRINCIPAL OFFICES WITH BUSINESS ADDRESS AXA EQUITABLE ---------------- ------------- DIRECTORS Bruce W. Calvert Director 78 Pine Street, 2nd Floor New Canaan, CT 06840 Henri de Castries Director AXA 25, Avenue Matignon 75008 Paris, France Denis Duverne Director AXA 25, Avenue Matignon 75008 Paris, France C-6 POSITIONS AND NAME AND PRINCIPAL OFFICES WITH BUSINESS ADDRESS AXA EQUITABLE ---------------- --------- Mary R. (Nina) Henderson Director Henderson Advisory Consulting 425 East 86th Street Apt 12-C New York, NY 10028 James F. Higgins Director Morgan Stanley Harborside Financial Center Plaza Two, Second Floor Jersey City, NJ 07311 W. Edwin Jarmain Director Jarmain Group Inc. 77 King Street West Toronto, M5K 1K2 Canada Christina Johnson Director Christina Johnson and Associates 200 Railroad Avenue Greenwich, CT 06830 Scott D. Miller Director Six Sigma Academy 315 East Hopkins Street Suite 401 Aspen, CO 81611 C-7 POSITIONS AND NAME AND PRINCIPAL OFFICES WITH BUSINESS ADDRESS AXA EQUITABLE ---------------- --------- Joseph H. Moglia Director Ameritrade Holding Corporation 4211 South 102nd Street Omaha, NE 68127 Peter J. Tobin Director 1 Briarwood Lane Denville, NJ 07834 OFFICER-DIRECTORS ----------------- *Christopher M. Condron Chairman of the Board, President, Chief Executive Officer and Director *Stanley B. Tulin Vice Chairman of the Board, Chief Financial Officer and Director OTHER OFFICERS -------------- *Leon Billis Executive Vice President and AXA Group Deputy Chief Information Officer *Harvey Blitz Senior Vice President *Kevin R. Byrne Senior Vice President, Chief Investment Officer and Treasurer *Stuart L. Faust Senior Vice President and Deputy General Counsel *Alvin H. Fenichel Senior Vice President and Controller *Jennifer Blevins Executive Vice President *Mary Beth Farrell Executive Vice President *Robert S. Jones, Jr. Executive Vice President *Richard S. Dziadzio Executive Vice President *Barbara Goodstein Executive Vice President *Andrew McMahon Executive Vice President C-8 POSITIONS AND NAME AND PRINCIPAL OFFICES WITH BUSINESS ADDRESS AXA EQUITABLE ---------------- --------- *Paul J. Flora Senior Vice President and Auditor *James D. Goodwin Senior Vice President *Edward J. Hayes Senior Vice President *Kevin E. Murray Executive Vice President and Chief Information Officer *Anthony C. Pasquale Senior Vice President *Karen Field Hazin Vice President, Secretary and Associate General Counsel *Richard V. Silver Executive Vice President and General Counsel *Naomi J. Weinstein Vice President *Charles A. Marino Senior Vice President and Chief Actuary *James A. Shepherdson Executive Vice President C-9 Item 26. Persons Controlled by or under Common Control with AXA Equitable or ---------------------------------------------------------------- Registrant ---------- Separate Account Nos. 3, 4, 10, 13 and 66 of AXA Equitable Life Insurance Company (the "Separate Account") are each separate accounts of AXA Equitable. AXA Equitable, a New York stock life insurance company, is a wholly owned subsidiary of AXA Financial, Inc. (the "Holding Company"). AXA owns 100% of the outstanding common stock of the Holding Company (assuming conversion of the convertible preferred stock held by AXA). AXA is able to exercise significant influence over the operations and capital structure of the Holding Company and its subsidiaries, including AXA Equitable. AXA, a French company, is the holding company for an international group of insurance and related financial services companies. AXA's Abbreviated AXA Organizational Chart and the AXA Organizational Chart are incorporated by reference to Exhibit 26 to Registration Statement (File No. 333-05593) on Form N-4, filed April 20, 2006. C-10 AXA FINANCIAL, INC. - SUBSIDIARY ORGANIZATION CHART- 2005 --------------------------------------------------------- AS OF 12/31/05
State of State of Type of Incorp. or Principal Federal Subsidiary Domicile Operation Tax ID # ---------- -------- --------- --------- -------------------------------------------- AXA Financial, Inc. (Notes 1 & 2) ** DE NY 13-3623351 ------------------------------------------------------------------------------------------------------------------------------------ Frontier Trust Company, FSB (Note 7) ND ND 45-0373941 ------------------------------------------------------------------------ -------------------------------------------- MONY Agricultural Investment Advisers, Inc. Operating DE CO 75-2961816 ------------------------------------------------------------------------------------------------------------------------------- MONY Capital Management, Inc. Operating DE NY 13-4194065 ------------------------------------------------------------------------------------------------------------------------------- MONY Asset Management, Inc. Operating DE NY 13-4194080 ------------------------------------------------------------------------------------------------------------------------------- MONY Holdings, LLC HCO DE NY 13-3976138 ------------------------------------------------------------------------------------------------------------------------------- See Attached Listing C ------------------------------------------------------------------------------------------------------------------------------- AXA Financial Services, LLC (Note 2) DE NY 52-2197822 ------------------------------------------------------------------------------------------------------------------------------- AXA Financial (Bermuda) Ltd. Insurance Bermuda Bermuda 14-1903564 ---------------------------------------------------------------------------------------------------------------------------- AXA Distribution Holding Corporation (Note 2) DE NY 13-4078005 ---------------------------------------------------------------------------------------------------------------------------- AXA Advisors, LLC (Note 5) DE NY 13-4071393 ------------------------------------------------------------------------------------------------------------------------- AXA Network, LLC (Note 6) Operating DE NY 06-1555494 ------------------------------------------------------------------------------------------------------------------------- AXA Network of Alabama, LLC Operating AL AL 06-1562392 ---------------------------------------------------------------------------------------------------------------------- AXA Network of Connecticut, Maine and New York, LLC Operating DE NY 13-4085852 ---------------------------------------------------------------------------------------------------------------------- AXA Network Insurance Agency of Massachusetts, LLC Operating MA MA 04-3491734 ---------------------------------------------------------------------------------------------------------------------- AXA Network of Nevada, Inc. Operating NV NV 13-3389068 ---------------------------------------------------------------------------------------------------------------------- AXA Network of Puerto Rico, Inc. Operating P.R. P.R. 66-0577477 ---------------------------------------------------------------------------------------------------------------------- AXA Network Insurance Agency of Texas, Inc. Operating TX TX 75-2529724 ---------------------------------------------------------------------------------------------------------------------------- AXA Equitable Life Insurance Company (Note 2 & 9) * Insurance NY NY 13-5570651 ---------------------------------------------------------------------------------------------------------------------------- AXA Life and Annuity Company * (Note 10) Insurance CO CO 13-3198083 ------------------------------------------------------------------------------------------------------------------------- Equitable Deal Flow Fund, L.P. Investment DE NY 13-3385076 ------------------------------------------------------------------------------------------------------------------------- Equitable Managed Assets, L.P. Investment DE NY 13-3385080 ------------------------------------------------------------------------------------------------------------------------- Real Estate Partnership Equities (various) Investment ** - ------------------------------------------------------------------------------------------------------------------------- Equitable Holdings, LLC (Notes 3 & 4) HCO NY NY 22-2766036 ------------------------------------------------------------------------------------------------------------------------- See Attached Listing A ------------------------------------------------------------------------------------------------------------------------- ACMC, Inc. (Note 4) HCO DE NY 13-2677213 ------------------------------------------------------------------------------------------------------------------------- Wil-Gro, Inc Investment PA PA 23-2702404 ------------------------------------------------------------------------------------------------------------------------- STCS, Inc. Investment DE NY 13-3761592 ------------------------------------------------------------------------------------------------------------------------- EVSA, Inc. Investment DE PA 23-2671508 ------------------------------------------------------------------------------------------------------------------------- Parent's Number of Percent of Shares Ownership Comments Owned or Control (e.g., Basis of Control) ----- ---------- ------------------------ AXA Financial, Inc. (Notes 1 & 2) ** ----------------------------------------------------------------------------- Frontier Trust Company, FSB (Note 7) 1,000 100.00% ------------------------------------------------------------------------ MONY Agricultural Investment Advisers, Inc. 100.00% ------------------------------------------------------------------------ MONY Capital Management, Inc. 100.00% ------------------------------------------------------------------------ MONY Asset Management, Inc. 100.00% ------------------------------------------------------------------------ MONY Holdings, LLC 100.00% ------------------------------------------------------------------------ See Attached Listing C ------------------------------------------------------------------------ AXA Financial Services, LLC (Note 2) - 100.00% ------------------------------------------------------------------------ AXA Financial (Bermuda) Ltd. 250,000 100.00% --------------------------------------------------------------------- AXA Distribution Holding Corporation (Note 2) 1,000 100.00% --------------------------------------------------------------------- AXA Advisors, LLC (Note 5) - 100.00% ------------------------------------------------------------------ AXA Network, LLC (Note 6) - 100.00% ------------------------------------------------------------------ AXA Network of Alabama, LLC - 100.00% --------------------------------------------------------------- AXA Network of Connecticut, Maine and New York, LLC - 100.00% --------------------------------------------------------------- AXA Network Insurance Agency of Massachusetts, LLC - 100.00% --------------------------------------------------------------- AXA Network of Nevada, Inc. 100.00% --------------------------------------------------------------- AXA Network of Puerto Rico, Inc. 100.00% --------------------------------------------------------------- AXA Network Insurance Agency of Texas, Inc. 1,050 100.00% --------------------------------------------------------------------- AXA Equitable Life Insurance Company (Note 2 & 9) * 2,000,000 100.00% NAIC # 62944 --------------------------------------------------------------------- AXA Life and Annuity Company * (Note 10) 1,000,000 100.00% NAIC # 62880 ------------------------------------------------------------------ Equitable Deal Flow Fund, L.P. - - G.P & L.P. ------------------------------------------------------------------ Equitable Managed Assets, L.P. - - G.P. ------------------------------------------------------------------ Real Estate Partnership Equities (various) - - ** ------------------------------------------------------------------ Equitable Holdings, LLC (Notes 3 & 4) - 100.00% ------------------------------------------------------------------ See Attached Listing A ------------------------------------------------------------------ ACMC, Inc. (Note 4) 5,000,000 100.00% ------------------------------------------------------------------ Wil-Gro, Inc 1,000 100.00% ------------------------------------------------------------------ STCS, Inc. 1,000 100.00% ------------------------------------------------------------------ EVSA, Inc. 50 100.00% ------------------------------------------------------------------
Page 1 of 7 AXA FINANCIAL, INC. - SUBSIDIARY ORGANIZATION CHART- 2005 --------------------------------------------------------- * Affiliated Insurer ** Information relating to Equitable's Real Estate Partnership Equities is disclosed in Schedule BA, Part 1 of Equitable Life's Annual Statement, which has been filed with the N.Y.S. Insurance Department. *** All subsidiaries are corporations, except as otherwise noted. 1. The Equitable Companies Incorporated changed its name to AXA Financial, Inc. on Sept. 3, 1999. 2. Effective Sept. 20, 1999, AXA Financial, Inc. transferred ownership of Equitable Life to AXA Client Solutions, LLC, which was formed on July 19, 1999. Effective January 1, 2002, AXA Client Solutions, LLC transferred ownership of Equitable Life and AXA Distribution Holding Corp. to AXA Financial, Inc. Effective May 1, 2002, AXA Client Solutions, LLC changed its name to AXA Financial Services, LLC. Effective June 1, 2002, AXA Financial, Inc. transferred ownership of Equitable Life and AXA Distribution Holding Corp. to AXA Financial Services, LLC. 3. Equitable Holding Corp. was merged into Equitable Holdings, LLC on Dec. 19, 1997. 4. In October 1999, Alliance Capital Management Holding L.P. ("Alliance Holding") reorganized by transferring its business and assets to Alliance Capital Management L.P., a newly formed private partnership ("Alliance Capital"). As of December 21, 2005, AXF and its subsidiaries owned 61.08% of the issued and outstanding units of limited partnership interest in Alliance Capital (the "Alliance Capital Units"), as follows: AXF held directly 32,699,454 Alliance Capital Units (12.66%), AXA Equitable Life directly owned 8,165,204 Alliance Capital Units (3.16%), ACMC, Inc. owned 66,220,822 Alliance Capital Units (25.65%), and ECMC, LLC owned 40,880,637 Alliance Capital Units (15.84%). Alliance Capital Management Corporation also owns a 1% general partnership interest in Alliance Capital. In addition, ECMC, LLC and ACMC, Inc. each own 722,178 units (0.28% each), representing assignments of beneficial ownership of limited partnership interests in Alliance Holding (the "Alliance Holding Units"). Alliance Capital Management Corp. owns 100,000 units of general partnership interest (0.04%), in Alliance Holding. Alliance Holding Units are publicly traded on the New York Stock exchange. On December 21, 2004, AXF contributed 4,389,192 (1.70%)Alliance Capital Units to MONY Life and 1,225,000 (.47%)Alliance Capital Units to MLOA. 5. EQ Financial Consultants (formerly, Equico Securities, Inc.) was merged into AXA Advisors, LLC on Sept. 20, 1999. AXA Advisors, LLC was transferred from Equitable Holdings, LLC to AXA Distribution Holding Corporation on Sept. 21, 1999. 6. Effective March 15, 2000, Equisource of New York, Inc. and 14 of its subsidiaries were merged into AXA Network, LLC, which was then sold to AXA Distribution Holding Corp. EquiSource of Alabama, Inc. became AXA Network of Alabama, LLC. EquiSource Insurance Agency of Massachusetts, Inc. became AXA Network Insurance Agency of Massachusetts, LLC. Equisource of Nevada, Inc., of Puerto Rico, Inc., and of Texas, Inc., changed their names from "EquiSource" to become "AXA Network", respectively. Effective February 1, 2002, Equitable Distributors Insurance Agency of Texas, Inc. changed its name to AXA Distributors Insurance Agency of Texas, Inc. Effective February 13, 2002 Equitable Distributors Insurance Agency of Massachusetts, LLC changed its name to AXA Distributors Insurance Agency of Massachusetts, LLC. 7. Effective June 6, 2000, Frontier Trust Company was sold by ELAS to AXF and merged into Frontier Trust Company, FSB. 8. Effective June 1, 2001, Equitable Structured Settlement Corp was transferred from ELAS to Equitable Holdings, LLC. 9. Effective September 2004, The Equitable Life Assurance Society of the United States changed its name to AXA Equitable Life Insurance Company. 10. Effective September 2004, The Equitable of Colorado changed its name to AXA Life and Annuity Company. 11. Effective February 18, 2005, MONY Realty Capital, Inc. was sold to MMA. 12. Effective May 26, 2005, Matrix Capital Markets Group was sold. 13. Effective May 26, 2005, Matrix Private Equities was sold. 14. Effective December 2, 2005, Advest Group was sold to Merrill Lynch. Page 2 of 7 AXA FINANCIAL, INC. - SUBSIDIARY ORGANIZATION CHART- 2005 --------------------------------------------------------- Dissolved - On November 3, 2000, Donaldson, Lufkin & Jenrette, Inc. was sold to Credit Suisse Group. - 100 Federal Street Funding Corporation was dissolved August 31, 1998. - 100 Federal Street Realty Corporation was dissolved December 20, 2001. - CCMI Corp. was dissolved on October 7, 1999. - ELAS Realty, Inc. was dissolved January 29, 2002. - EML Associates, L.P. was dissolved March 27, 2001. - EQ Services, Inc. was dissolved May 11, 2001. - Equitable BJVS, Inc. was dissolved October 3, 1999. - Equitable Capital Management Corp. became ECMC, LLC on November 30, 1999. - Equitable JV Holding Corp. was dissolved on June 1, 2002.F142 - Equitable JVS II, Inc. was dissolved December 4, 1996 - Equitable Underwriting & Sales Agency (Bahamas) Ltd. was dissolved on December 31, 2000. - EREIM LP Associates (L.P.) was dissolved March 27, 2001. - EREIM Managers Corporation was dissolved March 27, 2001. - EVLICO East Ridge, Inc. was dissolved Jan. 13, 2001 - EVLICO, Inc. was dissolved in 1999. - Franconom, Inc. was dissolved on December 4, 2000. - GP/EQ Southwest, Inc. was dissolved October 21, 1997 - HVM Corp. was dissolved on Feb. 16, 1999. - ML/EQ Real Estate Portfolio, L.P. was dissolved March 27, 2001. - Prime Property Funding, Inc. was dissolved in Feb. 1999. - Sarasota Prime Hotels, Inc. became Sarasota Prime Hotels, LLC. - Six-Pac G.P., Inc. was dissolved July 12,1999 - Paramount Planners, LLC., a direct subsidiary of AXA Distribution Holding Corporation, was dissolved on December 5, 2003 - Equitable Rowes Wharf, Inc. was dissolved October 12, 2004 - ECLL Inc. was dissolved July 15, 2003 - MONY Realty Partners, Inc. was dissolved February 2005 Page 3 of 7 AXA FINANCIAL, INC. - SUBSIDIARY ORGANIZATION CHART- 2005 --------------------------------------------------------- LISTING A - EQUITABLE HOLDINGS, LLC -----------------------------------
State of State of Type of Incorp. or Principal Federal Subsidiary Domicile Operation Tax ID # ---------- -------- --------- --------- AXA Financial, Inc. ------------------------------------------------------------------------------ AXA Financial Services, LLC (Note 2) ------------------------------------------------------------------------- AXA Equitable Life Insurance Company * ---------------------------------------------------------------------- Equitable Holdings, LLC ------------------------------------------------------------------------------------------------------------------------- ELAS Securities Acquisition Corporation Operating DE NY 13-3049038 ---------------------------------------------------------------------------------------------------------------------- Equitable Casualty Insurance Company * Operating VT VT 06-1166226 ---------------------------------------------------------------------------------------------------------------------- ECMC, LLC (See Note 4 on Page 2) Operating DE NY 13-3266813 ---------------------------------------------------------------------------------------------------------------------- Equitable Capital Private Income & Equity Partnership II, L.P. Investment DE NY 13-3544879 ---------------------------------------------------------------------------------------------------------------------- Alliance Capital Management Corporation (See Note 4 on Page 2) Operating DE NY 13-3633538 ---------------------------------------------------------------------------------------------------------------------- See Attached Listing B ---------------------------------------------------------------------------------------------------------------------- Equitable JVS, Inc. Investment DE GA 58-1812697 ---------------------------------------------------------------------------------------------------------------------- Astor Times Square Corp. Investment NY NY 13-3593699 ------------------------------------------------------------------------------------------------------------------- Astor/Broadway Acquisition Corp. Investment NY NY 13-3593692 ------------------------------------------------------------------------------------------------------------------- PC Landmark, Inc. Investment TX TX 75-2338215 ------------------------------------------------------------------------------------------------------------------- EJSVS, Inc. Investment DE NJ 58-2169594 ---------------------------------------------------------------------------------------------------------------------- AXA Distributors, LLC Operating DE NY 52-2233674 ---------------------------------------------------------------------------------------------------------------------- AXA Distributors Insurance Agency of Alabama, LLC Operating DE AL 52-2255113 ------------------------------------------------------------------------------------------------------------------- AXA Distributors Insurance Agency, LLC Operating DE CT, ME,NY 06-1579051 ------------------------------------------------------------------------------------------------------------------- AXA Distributors Insurance Agency of Massachusetts, LLC Operating MA MA 04-3567096 ------------------------------------------------------------------------------------------------------------------- AXA Distributors Insurance Agency of Texas, Inc. Operating TX TX 74-3006330 ---------------------------------------------------------------------------------------------------------------------- J.M.R. Realty Services, Inc. Operating DE NY 13-3813232 ---------------------------------------------------------------------------------------------------------------------- Equitable Structured Settlement Corp. (See Note 8 on Page 2) Operating DE NJ 22-3492811 ---------------------------------------------------------------------------------------------------------------------- Parent's Number of Percent of Shares Ownership Comments Owned or Control (e.g., Basis of Control) ----- ---------- ------------------------ AXA Financial, Inc. ------------------------------------------------------------------------------ AXA Financial Services, LLC (Note 2) ------------------------------------------------------------------------- AXA Equitable Life Insurance Company * ---------------------------------------------------------------------- Equitable Holdings, LLC ------------------------------------------------------------------- ELAS Securities Acquisition Corporation 500 100.00% ---------------------------------------------------------------- Equitable Casualty Insurance Company * 1,000 100.00% ---------------------------------------------------------------- ECMC, LLC (See Note 4 on Page 2) - 100.00% ---------------------------------------------------------------- Equitable Capital Private Income & Equity ECMC is G.P. Partnership II, L.P. - - ("Deal Flow Fund II") ---------------------------------------------------------------- Alliance Capital Management Corporation (See Note 4 on Page 2) 100 100.00% ---------------------------------------------------------------- See Attached Listing B ---------------------------------------------------------------- Equitable JVS, Inc. 1,000 100.00% ---------------------------------------------------------------- Astor Times Square Corp. 100 100.00% ------------------------------------------------------------- Astor/Broadway Acquisition Corp. 100 100.00% G.P. of Astor Acquisition. L.P. ------------------------------------------------------------- PC Landmark, Inc. 1,000 100.00% ------------------------------------------------------------- EJSVS, Inc. 1,000 100.00% ---------------------------------------------------------------- AXA Distributors, LLC - 100.00% ---------------------------------------------------------------- AXA Distributors Insurance Agency of Alabama, LLC - 100.00% ------------------------------------------------------------- AXA Distributors Insurance Agency, LLC - 100.00% ------------------------------------------------------------- AXA Distributors Insurance Agency of Massachusetts, LLC - 100.00% ------------------------------------------------------------- AXA Distributors Insurance Agency of Texas, Inc. 1,000 100.00% ---------------------------------------------------------------- J.M.R. Realty Services, Inc. 1,000 100.00% ---------------------------------------------------------------- Equitable Structured Settlement Corp. (See Note 8 on Page 2) 100 100.00% ----------------------------------------------------------------
* Affiliated Insurer Equitable Investment Corp merged into Equitable Holdings, LLC on November 30, 1999. Equitable Capital Management Corp. became ECMC, LLC on November 30, 1999. Effective March 15, 2000, Equisource of New York, Inc. and its subsidiaries were merged into AXA Network, LLC, which was then sold to AXA Distribution Holding Holding Corp. Effective January 1, 2002, Equitable Distributors, Inc. merged into AXA Distributors, LLC. Page 4 of 7 AXA FINANCIAL, INC. - SUBSIDIARY ORGANIZATION CHART- 2005 --------------------------------------------------------- LISTING B - ALLIANCE CAPITAL MANAGEMENT CORP. ---------------------------------------------
State of State of Type of Incorp. or Principal Federal Subsidiary Domicile Operation Tax ID # ---------- -------- --------- --------- AXA Financial, Inc. -------------------------------------------------------------------------------- AXA Financial Services, LLC (Note 2) --------------------------------------------------------------------------- AXA Equitable Life Insurance Company ------------------------------------------------------------------------ Equitable Holdings, LLC --------------------------------------------------------------------- Alliance Capital Management Corporation ---------------------------------------------------------------------------------------------------------------------- Alliance Capital Management Holding L.P.(See Note 4 on Page 2) Operating DE NY ------------------------------------------------------------------------------------------------------------------- Alliance Capital Management L.P. (See Note 4 on Page 2) Operating DE NY 13-3434400 ------------------------------------------------------------------------------------------------------------------- Cursitor Alliance LLC HCO DE MA 22-3424339 ---------------------------------------------------------------------------------------------------------------- Alliance Capital Management LLC HCO DE NY ---------------------------------------------------------------------------------------------------------------- Sanford C. Bernstein & Co., LLC Operating DE NY ---------------------------------------------------------------------------------------------------------------- Alliance Capital Management Corp. of Delaware HCO DE NY 13-2778645 ---------------------------------------------------------------------------------------------------------------- ACAM Trust Company Private Ltd. Operating India India - ------------------------------------------------------------------------------------------------------------- ACM International (Argentina) SRL Operating Argentina Argentina - ------------------------------------------------------------------------------------------------------------- ACM International (France) SAS Operating France France - ------------------------------------------------------------------------------------------------------------- ACM Software Services Ltd. Operating DE NY 13-3910857 ------------------------------------------------------------------------------------------------------------- Alliance Barra Research Institute, Inc. Operating DE NY 13-3548918 ------------------------------------------------------------------------------------------------------------- Alliance Capital Asset Management (Japan) Ltd Operating Japan Japan - ------------------------------------------------------------------------------------------------------------- Alliance Capital Australia Limited Operating Aust. Aust. - ------------------------------------------------------------------------------------------------------------- Far Eastern Alliance Asset Management Operating Taiwan Taiwan - ------------------------------------------------------------------------------------------------------------- Alliance Capital Global Derivatives Corp. Operating DE NY 13-3626546 ------------------------------------------------------------------------------------------------------------- Alliance Capital Latin America Ltd. Operating Brazil Brazil - ------------------------------------------------------------------------------------------------------------- Alliance Capital Limited Operating U.K. U.K. - ------------------------------------------------------------------------------------------------------------- ACM Bernstein GmbH Operating Gemany Germany - ---------------------------------------------------------------------------------------------------- Alliance Capital Services Ltd. Operating U.K. U.K. - ------------------------------------------------------------------------------------------------------------- Alliance Capital (Luxembourg) S.A. Operating Lux. Lux. - ------------------------------------------------------------------------------------------------------------- ACM New-Alliance (Luxemberg) S.A. Operating Lux. Lux. - ---------------------------------------------------------------------------------------------------- ACM Bernstein International (Deutchland) GmbH Operating Germany Germany - ------------------------------------------------------------------------------------------------------------- Alliance Capital Management (Asia) Ltd. Operating DE Singapore 13-3752293 ------------------------------------------------------------------------------------------------------------- Alliance Capital Management Australia Limited Operating Aust. Aust. - ------------------------------------------------------------------------------------------------------------- Alliance Capital Management Canada, Inc. Operating DE Canada 13-3630460 ------------------------------------------------------------------------------------------------------------- Alliance Capital Management New Zealand Limited Operating N.Z. N.Z. - ------------------------------------------------------------------------------------------------------------- Parent's Number of Percent of Shares Ownership Comments Owned or Control (e.g., Basis of Control) ----- ---------- ------------------------ AXA Financial, Inc. -------------------------------------------------------------------------------- AXA Financial Services, LLC (Note 2) --------------------------------------------------------------------------- AXA Equitable Life Insurance Company ------------------------------------------------------------------------ Equitable Holdings, LLC --------------------------------------------------------------------- Alliance Capital Management Corporation owns 1% GP interest in Alli- ance Capital Management L.P. and 100,000 GP units in Alliance Capital Management Holding L.P. ------------------------------------------------------------------ Alliance Capital Management Holding L.P.(See Note 4 on Page 2) - --------------------------------------------------------------- Alliance Capital Management L.P. (See Note 4 on Page 2) --------------------------------------------------------------- Cursitor Alliance LLC 100.00% ------------------------------------------------------------ Alliance Capital Management LLC 100.00% ------------------------------------------------------------ Sanford C. Bernstein & Co., LLC 100.00% ------------------------------------------------------------ Alliance Capital Management Corp. of Delaware 10 100.00% ------------------------------------------------------------ ACAM Trust Company Private Ltd. 100.00% --------------------------------------------------------- ACM International (Argentina) SRL 100.00% Alliance Capital Oceanic Corp. owns 1% --------------------------------------------------------- ACM International (France) SAS 100.00% --------------------------------------------------------- ACM Software Services Ltd. 100.00% --------------------------------------------------------- Alliance Barra Research Institute, Inc. 1,000 100.00% --------------------------------------------------------- Alliance Capital Asset Management (Japan) Ltd 100.00% --------------------------------------------------------- Alliance Capital Australia Limited 100.00% --------------------------------------------------------- Far Eastern Alliance Asset Management 20.00% 3rd parties = 80% --------------------------------------------------------- Alliance Capital Global Derivatives Corp. 1,000 100.00% --------------------------------------------------------- Alliance Capital Latin America Ltd. 99.00% Alliance Capital Oceanic Corp. owns 1% --------------------------------------------------------- Alliance Capital Limited 250,000 100.00% --------------------------------------------------------- ACM Bernstein GmbH 100.00% ------------------------------------------------ Alliance Capital Services Ltd. 1,000 100.00% --------------------------------------------------------- Alliance Capital (Luxembourg) S.A. 3,999 99.98% Alliance Cap. Oceanic Corp. owns 0.025% --------------------------------------------------------- ACM New-Alliance (Luxemberg) S.A. 1.00% New Alliance Asset Management (Asia) Ltd owns 99.% ------------------------------------------------ ACM Bernstein International (Deutchland) GmbH 100.00% New Alliance Asset Management (Asia) Ltd owns 99.% --------------------------------------------------------- Alliance Capital Management (Asia) Ltd. 100.00% --------------------------------------------------------- Alliance Capital Management Australia Limited 50.00% 3rd parties = 50% --------------------------------------------------------- Alliance Capital Management Canada, Inc. 18,750 100.00% --------------------------------------------------------- Alliance Capital Management New Zealand Limited 50.00% 3rd parties = 50% ---------------------------------------------------------
Page 5 of 7 AXA FINANCIAL, INC. - SUBSIDIARY ORGANIZATION CHART- 2005 --------------------------------------------------------- LISTING B - ALLIANCE CAPITAL MANAGEMENT CORP. ---------------------------------------------
State of State of Type of Incorp. or Principal Federal Subsidiary Domicile Operation Tax ID # ---------- -------- --------- --------- AXA Financial, Inc. ------------------------------------------------------------------------------ AXA Financial Services, LLC (Note 2) ------------------------------------------------------------------------- AXA Equitable Life Insurance Company ---------------------------------------------------------------------- Equitable Holdings, LLC ------------------------------------------------------------------- Alliance Capital Management Corporation ---------------------------------------------------------------- Alliance Capital Management L.P. ------------------------------------------------------------- Alliance Capital Management Corp. of Delaware (Cont'd) ---------------------------------------------------------------------------------------------------------------- Alliance Capital Management (Proprietary) Ltd. Operating So Africa So Africa - ------------------------------------------------------------------------------------------------------------- Alliance Capital Management (Singapore) Ltd. Operating Singapore Singapore - ------------------------------------------------------------------------------------------------------------- Alliance Capital (Mauritius) Private Ltd. Operating Mauritius Mauritius - ------------------------------------------------------------------------------------------------------------- Alliance Capital Asset Management (India) Private Ltd. Operating India India - ---------------------------------------------------------------------------------------- AllianceBernstein Invest. Res. & Manag. (India) Pvt. Operating India India - ------------------------------------------------------------------------------------------------------------- Alliance Capital Oceanic Corp. Operating DE NY 13-3441277 ------------------------------------------------------------------------------------------------------------- Alliance Capital Real Estate, Inc. Operating DE NY 13-3441277 ------------------------------------------------------------------------------------------------------------- Alliance Corporate Finance Group Inc. Operating DE NY 52-1671668 ------------------------------------------------------------------------------------------------------------- Alliance Eastern Europe, Inc. Operating DE NY 13-3802178 ------------------------------------------------------------------------------------------------------------- AllianceBernstein Investment Research and Management, Inc. (Alliance Fund Distributors, Inc.) Operating DE NY 13-3191825 ------------------------------------------------------------------------------------------------------------- Alliance Global Investor Services, Inc. Operating DE NJ 13-3211780 ------------------------------------------------------------------------------------------------------------- New Alliance Asset Management (Asia) Ltd Operating H.K. H.K. - ------------------------------------------------------------------------------------------------------------- Alliance Capital Taiwan Limited Operating Taiwan Taiwan - ---------------------------------------------------------------------------------------------------- ACM New-Alliance (Luxembourg) S.A. Operating Lux. Lux. - ------------------------------------------------------------------------------------------------------------- Meiji - Alliance Capital Corp. Operating DE NY 13-3613617 ------------------------------------------------------------------------------------------------------------- Sanford C. Bernstein Ltd. Operating U.K. U.K. - ------------------------------------------------------------------------------------------------------------- Sanford C. Bernstein (CREST Nominees) Ltd. Operating U.K. U.K. - ------------------------------------------------------------------------------------------------------------- Whittingdale Holdings Ltd. Operating U.K. U.K. - ------------------------------------------------------------------------------------------------------------- ACM Investments Ltd. Operating U.K. U.K. - ---------------------------------------------------------------------------------------------------- Alliance Capital Whittingdale Ltd. Operating U.K. U.K. - ---------------------------------------------------------------------------------------------------- Cursitor Holdings Ltd. Operating U.K. U.K. - ---------------------------------------------------------------------------------------------------- Parent's Number of Percent of Shares Ownership Comments Owned or Control (e.g., Basis of Control) ----- ---------- ------------------------ AXA Financial, Inc. ------------------------------------------------------------------------------ AXA Financial Services, LLC (Note 2) ------------------------------------------------------------------------- AXA Equitable Life Insurance Company ---------------------------------------------------------------------- Equitable Holdings, LLC ------------------------------------------------------------------- Alliance Capital Management Corporation ---------------------------------------------------------------- Alliance Capital Management L.P. ------------------------------------------------------------- Alliance Capital Management Corp. of Delaware (Cont'd) ---------------------------------------------------------- Alliance Capital Management (Proprietary) Ltd. 80.00% 3rd parties = 20% ------------------------------------------------------- Alliance Capital Management (Singapore) Ltd. 100.00% ------------------------------------------------------- Alliance Capital (Mauritius) Private Ltd. 100.00% ------------------------------------------------------- Alliance Capital Asset Management (India) Private Ltd. 75.00% 3rd parties = 25% ---------------------------------------------- AllianceBernstein Invest. Res. & Manag. (India) Pvt. 100.00% ------------------------------------------------------- Alliance Capital Oceanic Corp. 1,000 100.00% inactive ------------------------------------------------------- Alliance Capital Real Estate, Inc. 100.00% inactive ------------------------------------------------------- Alliance Corporate Finance Group Inc. 1,000 100.00% ------------------------------------------------------- Alliance Eastern Europe, Inc. 100.00% ------------------------------------------------------- AllianceBernstein Investment Research and Management, Inc. (Alliance Fund Distributors, Inc.) 100 1 ------------------------------------------------------- Alliance Global Investor Services, Inc. 100 100.00% formerly, Alliance Fund Services, Inc. ------------------------------------------------------- New Alliance Asset Management (Asia) Ltd 50.00% 3rd parties = 50% ------------------------------------------------------- Alliance Capital Taiwan Limited 99.00% Others owns 1% ---------------------------------------------- ACM New-Alliance (Luxembourg) S.A. 99.00% ACM Global Investor Svcs owns 1% ------------------------------------------------------- Meiji - Alliance Capital Corp. 50,000 50.00% Meiji Mutual Life owns 50% ------------------------------------------------------- Sanford C. Bernstein Ltd. 100.00% ------------------------------------------------------- Sanford C. Bernstein (CREST Nominees) Ltd. 100.00% ------------------------------------------------------- Whittingdale Holdings Ltd. 100.00% ------------------------------------------------------- ACM Investments Ltd. 100.00% ---------------------------------------------- Alliance Capital Whittingdale Ltd. 100.00% ---------------------------------------------- Cursitor Holdings Ltd. 100.00% ----------------------------------------------
Page 6 of 7 AXA FINANCIAL, INC. - SUBSIDIARY ORGANIZATION CHART- 2005 --------------------------------------------------------- LISTING C - MONY ----------------
State of State of Type of Incorp. or Principal Federal Subsidiary Domicile Operation Tax ID # ---------- -------- --------- --------- AXA Financial, Inc. ------------------------------------------------------------------------------ AXA Financial Services, LLC (Note 2) ------------------------------------------------------------------------- AXA Equitable Life Insurance Company * ------------------------------------------------------------------------------------------------------------------------------- MONY Agricultural Investment Advisers, Inc. Operating DE CO 75-2961816 ------------------------------------------------------------------------------------------------------------------------------- MONY Capital Management, Inc. Operating DE NY 13-4194065 ------------------------------------------------------------------------------------------------------------------------------- MONY Asset Management, Inc. Operating DE NY 13-4194080 ------------------------------------------------------------------------------------------------------------------------------- MONY Holdings, LLC HCO DE NY 13-3976138 ------------------------------------------------------------------------------------------------------------------------------- MONY Life Insurance Company * Insurance NY NY 13-1632487 ---------------------------------------------------------------------------------------------------------------------------- MONY International Holdings, LLC HCO DE NY 13-3790446 ------------------------------------------------------------------------------------------------------------------------- MONY International Life Insurance Co. Seguros de Vida S.A. Insurance Argentina Argentina 98-0157781 ---------------------------------------------------------------------------------------------------------------------- MONY Financial Resources of the Americas Limited HCO Jamaica Jamaica ---------------------------------------------------------------------------------------------------------------------- MONY Bank & Trust Company of the Americas, Ltd. Operating Cayman Islands Cayman Islands 98-0152047 ---------------------------------------------------------------------------------------------------------------------- MONY Consultoria e Corretagem de Seguros Ltda. Operating Brazil Brazil ------------------------------------------------------------------------------------------------------------------- MONY Life Insurance Company of the Americas, Ltd. Insurance Cayman Islands Cayman Islands 98-0152046 ------------------------------------------------------------------------------------------------------------------------- MONY Life Insurance Company of America Insurance AZ NY 86-0222062 ------------------------------------------------------------------------------------------------------------------------- Sagamore Financial, LLC HCO OH OH 31-1296919 ------------------------------------------------------------------------------------------------------------------------- U.S. Financial Life Insurance Company * Insurance OH OH 38-2046096 ------------------------------------------------------------------------------------------------------------------------- MONY Financial Services, Inc. HCO DE NY 11-3722370 ------------------------------------------------------------------------------------------------------------------------- Financial Marketing Agency, Inc. Operating OH OH 31-1465146 ---------------------------------------------------------------------------------------------------------------------- MONY Brokerage, Inc. Operating DE PA 22-3015130 ---------------------------------------------------------------------------------------------------------------------- MBI Insurance Agency of Ohio, Inc. Operating OH OH 31-1562855 ------------------------------------------------------------------------------------------------------------------- MBI Insurance Agency of Alabama, Inc. Operating AL AL 62-1699522 ------------------------------------------------------------------------------------------------------------------- MBI Insurance Agency of Texas, Inc. Operating TX TX 74-2861481 ------------------------------------------------------------------------------------------------------------------- MBI Insurance Agency of Massachusetts, Inc. Operating MA MA 06-1496443 ------------------------------------------------------------------------------------------------------------------- MBI Insurance Agency of Washington, Inc. Operating WA WA 91-1940542 ------------------------------------------------------------------------------------------------------------------- MBI Insurance Agency of New Mexico, Inc. Operating NM NM 62-1705422 ---------------------------------------------------------------------------------------------------------------------- 1740 Ventures, Inc. Operating NY NY 13-2848244 ---------------------------------------------------------------------------------------------------------------------- Enterprise Capital Management, Inc. Operating GA GA 58-1660289 ---------------------------------------------------------------------------------------------------------------------- Enterprise Fund Distributors, Inc. Operating DE GA 22-1990598 ---------------------------------------------------------------------------------------------------------------------- MONY Assets Corp. HCO NY NY 13-2662263 ---------------------------------------------------------------------------------------------------------------------- MONY Benefits Management Corp. Operating DE NY 13-3363383 ------------------------------------------------------------------------------------------------------------------- MONY Benefits Service Corp. Operating DE NY 13-4194349 ---------------------------------------------------------------------------------------------------------------------- 1740 Advisers, Inc. Operating NY NY 13-2645490 ---------------------------------------------------------------------------------------------------------------------- MONY Securities Corporation Operating NY NY 13-2645488 ---------------------------------------------------------------------------------------------------------------------- Trusted Insurance Advisers General Agency Corp. Operating MN NY 41-1941465 ------------------------------------------------------------------------------------------------------------------- Trusted Investment Advisers Corp. Operating MN NY 41-1941464 ------------------------------------------------------------------------------------------------------------------- Parent's Number of Percent of Shares Ownership Comments Owned or Control (e.g., Basis of Control) ----- ---------- ------------------------ AXA Financial, Inc. ------------------------------------------------------------------------------ AXA Financial Services, LLC (Note 2) ------------------------------------------------------------------------- AXA Equitable Life Insurance Company * ------------------------------------------------------------------------- MONY Agricultural Investment Advisers, Inc. 100.00% ------------------------------------------------------------------------- MONY Capital Management, Inc. 100.00% ------------------------------------------------------------------------- MONY Asset Management, Inc. 100.00% ------------------------------------------------------------------------- MONY Holdings, LLC 100.00% ------------------------------------------------------------------------- MONY Life Insurance Company * 100.00% ---------------------------------------------------------------------- MONY International Holdings, LLC 100.00% ------------------------------------------------------------------- MONY International Life Insurance Co. Seguros de Vida S.A. 100.00% ---------------------------------------------------------------- MONY Financial Resources of the Americas Limited 99.00% ---------------------------------------------------------------- MONY Bank & Trust Company of the Americas, Ltd. 100.00% ---------------------------------------------------------------- MONY Consultoria e Corretagem de Seguros Ltda. 99.00% ------------------------------------------------------------- MONY Life Insurance Company of the Americas, Ltd. 100.00% ------------------------------------------------------------------- MONY Life Insurance Company of America 100.00% ------------------------------------------------------------------- Sagamore Financial, LLC 1,993,940 100.00% ------------------------------------------------------------------- U.S. Financial Life Insurance Company * 405,000 100.00% ------------------------------------------------------------------- MONY Financial Services, Inc. 1,000 100.00% ------------------------------------------------------------------- Financial Marketing Agency, Inc. 99 99.00% ---------------------------------------------------------------- MONY Brokerage, Inc. 1,500 100.00% ---------------------------------------------------------------- MBI Insurance Agency of Ohio, Inc. 5 100.00% ------------------------------------------------------------- MBI Insurance Agency of Alabama, Inc. 1 100.00% ------------------------------------------------------------- MBI Insurance Agency of Texas, Inc. 10 100.00% ------------------------------------------------------------- MBI Insurance Agency of Massachusetts, Inc. 5 100.00% ------------------------------------------------------------- MBI Insurance Agency of Washington, Inc. 1 100.00% ------------------------------------------------------------- MBI Insurance Agency of New Mexico, Inc. 1 100.00% ---------------------------------------------------------------- 1740 Ventures, Inc. 1,000 100.00% ---------------------------------------------------------------- Enterprise Capital Management, Inc. 500 100.00% ---------------------------------------------------------------- Enterprise Fund Distributors, Inc. 1,000 100.00% ---------------------------------------------------------------- MONY Assets Corp. 200,000 100.00% ---------------------------------------------------------------- MONY Benefits Management Corp. 9,000 90.00% ------------------------------------------------------------- MONY Benefits Service Corp. 2,500 90.00% ---------------------------------------------------------------- 1740 Advisers, Inc. 14,600 100.00% ---------------------------------------------------------------- MONY Securities Corporation 7,550 100.00% ---------------------------------------------------------------- Trusted Insurance Advisers General Agency Corp. 1,000 100.00% ------------------------------------------------------------- Trusted Investment Advisers Corp. 1 100.00% -------------------------------------------------------------
- As of February 18, 2005, MONY Realty Capital, Inc. was sold to MMA. - As of February 2005, MONY Realty Parnters, Inc. was dissolved - MONY Financial Resources of the Americas Limited, is 99% owned by MONY International Holdings, LLCand an individual holds one share of it stock for Jamaican regulatory reasons. - MONY Financial Resources of the Americas Limited, is 99% owned by MONY International Holdings, LLCand an individual holds one share of it stock for Brazilian regulatory reasons. - Enterprise Accumulation Trust was merged into EQAT on July 9, 2004 - MONY Series Funds, Inc. was merged into EQAT on July 9, 2004 Page 7 of 7 Item 27. Number of Contractowners ------------------------ As of February 28, 2006, there were 1,316 owners of qualified and non-qualified RIA Contracts offered by the registrant. Item 28. Indemnification (a) Indemnification of Directors and Officers The By-Laws of AXA Equitable Life Insurance Company ("AXA Equitable") provide, in Article VII, as follows: 7.4 Indemnification of Directors, Officers and Employees. (a) To the extent permitted by the law of the State of New York and subject to all applicable requirements thereof: (i) any person made or threatened to be made a party to any action or proceeding, whether civil or criminal, by reason of the fact that he or she, or his or her testator or intestate, is or was a director, officer or employee of the Company shall be indemnified by the Company; (ii) any person made or threatened to be made a party to any action or proceeding, whether civil or criminal, by reason of the fact that he or she, or his or her testator or intestate serves or served any other organization in any capacity at the request of the Company may be indemnified by the Company; and (iii) the related expenses of any such person in any of said categories may be advanced by the Company. (b) To the extent permitted by the law of the State of New York, the Company may provide for further indemnification or advancement of expenses by resolution of shareholders of the Company or the Board of Directors, by amendment of these By-Laws, or by agreement. (Business Corporation Law ss. 721-726; Insurance Law ss. 1216) The directors and officers of AXA Equitable are insured under policies issued by Lloyd's of London, X.L. Insurance Company, Arch Insurance Company, Endurance Insurance Company, U.S. Specialty Insurance, Starr Excess Liability International and ACE Insurance Company. The annual limit on such policies is $150 million, and the policies insure that officers and directors against certain liabilities arising out of their conduct in such capacities. (b) Indemnification of Principal Underwriter To the extent permitted by law of the State of New York and subject to all applicable requirements thereof, AXA Advisors, LLC has undertaken to indemnify each of its directors and officers who is made or threatened to be made a party to any action or proceeding, whether civil or criminal, by reason of the fact the director or officer, or his or her testator or intestate, is or was a director or officer of AXA Advisors, LLC. (c) Undertaking Insofar as indemnification for liability arising under the Securities Act of 1933 ("Act") may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. Item 29. Principal Underwriters ---------------------- (a) AXA Advisors, LLC, an affiliate of AXA Equitable, MONY Life Insurance Company and MONY Life Insurance Company of America is the principal underwriter for AXA Equitable's Separate Account A, Separate Account No. 301, Separate Account No. 45, Separate Account No. 49, Separate Account I, Separate Account FP, and AXA Premier VIP Trust and EQ Advisors Trust; and of MONY Variable Account A, MONY Variable Account L, MONY America Variable Account A, MONY America Variable Account L, MONY America Variable Account A, MONY America Variable Account L, MONY Variable Account S, MONY America Variable Account S and Keynote Series Account. AXA Advisors's principal business address is 1290 Avenue of the Americas, NY, NY 10104. (b) Set forth below is certain information regarding the directors and principal officers of AXA Advisors, LLC. The business address of the persons whose names are preceded by an asterisk is that of AXA Advisors, LLC. NAME AND PRINCIPAL POSITIONS AND OFFICES WITH UNDERWRITER BUSINESS ADDRESS (AXA ADVISORS LLC) ---------------- -------------------------------------- *Harvey E. Blitz Assistant Vice President and Director *Robert S. Jones, Jr. Chairman of the Board and Director *Ned Dane President and Director *Richard Dziadzio Director *Barbara Goodstein Director *James A. Shepherdson Director *Mark Wutt Executive Vice President *Anthony F. Recine Chief Compliance Officer - Investment Advisory Activities Edward J. Hayes Executive Vice President 200 Plaza Drive Secaucus, NJ 07096 Stephen T. Burnthall Senior Vice President 6435 Shiloh Road Suite A Alpharetta, GA 30005 James Goodwin Senior Vice President 333 Thornall Street Edison, NJ 08837 Jeffrey Green Senior Vice President 4251 Crums Mill Road Harrisburg, PA 17112 *Kevin R. Byrne Senior Vice President and Treasurer *Jill Cooley Chief Risk Officer and Director *David Cerza First Vice President *Donna M. Dazzo First Vice President *Amy Franceschini First Vice President *Peter Mastrantuono First Vice President *Raymond T. Barry Vice President *Michael Brzozowski Vice President *Claire A. Comerford Vice President *Mark D. Godofsky Senior Vice President and Controller *Janet Friedman Vice President *Stuart Abrams Senior Vice President and General Counsel *Patricia Roy Vice President and Chief Compliance Officer - Broker-Dealer Activities C-11 *Linda J. Galasso Assistant Secretary *Francesca Divone Secretary *Maurya Keating Vice President and Counsel *Gary Gordon Vice President Gisela Jackson Vice President 4251 Crums Mill Road Harrisburg, PA 17112 *Frank Massa Vice President *Carolann Matthews Vice President *Jose Montenegro Vice President Edna Russo Vice President 333 Thornall Street Edison, NJ 08837 *Michael Ryniker Vice President *Frank Acierno Assistant Vice President *Ruth Shorter Assistant Vice President *Richard Morin Assistant Vice President *Irina Gyula Assistant Vice President (ii) AXA DISTRIBUTORS, LLC NAME AND PRINCIPAL POSITIONS AND OFFICES WITH UNDERWRITER BUSINESS ADDRESS (AXA DISTRIBUTORS, LLC) ---------------- -------------------------------------- *James A. Shepherdson Director and Chairman of the Board, President and Chief Executive Officer *Philip Meserve Director and Executive Vice President of Business Development *James Mullery Director, Executive Vice President and Chief Sales Director *Douglas Dubitsky Managing Director, Chief Service Officer *Michael Brandreit Managing Director and National Sales Manager *John Kennedy Managing Director and National Sales Manager *Jeff Herman Senior Vice President *Anthea Perkinson Senior Vice President and National Accounts Director, Financial Institutions *Nelida Garcia Senior Vice President *William Costello Senior Vice President and National Accounts Director *Michael McCarthy Managing Director and National Sales Manager *Norman J. Abrams Vice President and General Counsel *Linda J. Galasso Vice President and Secretary *Ronald R. Quest Vice President and Treasurer *Patrick O'Shea Vice President and Chief Financial Officer (c) The information under "Distribution of the Contracts" in the Prospectus and Statement of Additional Information forming a part of this Registration Statement is incorporated herein by reference. Item 30. Location of Accounts and Records -------------------------------- The records required to be maintained by Section 31(a) of the Investment Company Act of 1940 and Rules 31a-1 to 31a-3 thereunder are maintained by AXA Equitable Life Insurance Company at: 135 West 50th Street New York, New York 10020; 1290 Avenue of the Americas, New York, New York 10104; and 200 Plaza Drive, Secaucus, New Jersey 07094. Item 31. Management Services ------------------- Not applicable. Item 32. Undertakings ------------ The Registrant hereby undertakes: (a) to file a post-effective amendment to this registration statement as frequently as is necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old for so long as payments under the variable annuity contracts may be accepted; (b) to include either (1) as part of any application to purchase a contract offered by the prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a postcard or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information; and (c) to deliver any Statement of Additional Information and any financial statements required to be made available under this Form promptly upon written or oral request. C-12 SIGNATURES As required by the Securities Act of 1933, the Registrant certifies that it meets the requirements of The Securities Act Rule 485(b) for effectiveness of this amendment to the Registration Statement and has caused this amendment to the Registration Statement to be signed on its behalf, in the City and State of New York, on this 27th day of April, 2006. AXA EQUITABLE LIFE INSURANCE COMPANY (Registrant) By: AXA Equitable Life Insurance Company By: /s/ Dodie Kent -------------------------------- Dodie Kent Vice President and Counsel C-13 SIGNATURES As required by the Securities Act of 1933, the Depositor has caused this amendment to the Registration Statement to be signed on its behalf, in the City and State of New York, on this 27th day of April, 2006. AXA EQUITABLE LIFE INSURANCE COMPANY (Depositor) By: /s/ Dodie Kent --------------------------------- Dodie Kent Vice President and Counsel AXA Equitable Life Insurance Company As required by the Securities Act of 1933, this amendment to the Registration Statement has been signed by the following persons in the capacities and on the date indicated: PRINCIPAL EXECUTIVE OFFICERS: *Christopher M. Condron Chairman of the Board, President, Chief Executive Officer and Director PRINCIPAL FINANCIAL OFFICER: *Stanley B. Tulin Vice Chairman of the Board Chief Financial Officer and Director PRINCIPAL ACCOUNTING OFFICER: *Alvin H. Fenichel Senior Vice President and Controller *DIRECTORS: Bruce W. Calvert Mary R. (Nina) Henderson Scott D. Miller Christopher M. Condron James F. Higgins Joseph H. Moglia Henri de Castries W. Edwin Jarmain Peter J. Tobin Denis Duverne Christina Johnson Stanley B. Tulin *By: /s/ Dodie Kent ------------------------ Dodie Kent Attorney-in-Fact April 27, 2006 C-14 EXHIBIT INDEX ------------- EXHIBIT NO. TAG VALUE ----------- ---------- 10(a)(i) Consent of PricewaterhouseCoopers LLP. EX-99.10ai 10(a)(ii) Consent of KPMG LLP. EX-99.10aii 10(c) Powers of Attorney. EX-99.10c C-15