EX-99.2 5 0005.txt CONSOLIDATED FINANCIAL STATEMENT SCHEDULES Exhibit 99.2 REPORT OF INDEPENDENT ACCOUNTANTS ON CONSOLIDATED FINANCIAL STATEMENT SCHEDULES To the Board of Directors of AXA Financial, Inc. Our audits of the consolidated financial statements referred to in our report dated February 1, 2000, except as to Note 8, which is as of November 6, 2000, appearing on page 1 of Exhibit 99.1 of this Current Report on Form 8-K also included an audit of the consolidated financial statement schedules appearing on pages 2 to 9 of Exhibit 99.2 of this Current Report on Form 8-K. In our opinion, these consolidated financial statement schedules present fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. /s/ PricewaterhouseCoopers LLP New York, New York February 1, 2000, except as to Note 8, which is as of November 6, 2000 1 AXA FINANCIAL, INC. SCHEDULE I SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES DECEMBER 31, 1999
ESTIMATED CARRYING TYPE OF INVESTMENT COST (A) FAIR VALUE VALUE ------------------ ---------------- ----------------- ----------------- (IN MILLIONS) Fixed maturities: U.S. government, agencies and authorities.............. $ 1,218.0 $ 1,213.3 $ 1,213.3 State, municipalities and political subdivisions....... 110.0 106.5 106.5 Foreign governments.................................... 361.8 363.2 363.2 Public utilities....................................... 1,267.9 1,247.5 1,247.5 All other corporate bonds.............................. 16,611.2 15,900.8 15,894.9 Redeemable preferred stocks............................ 311.6 277.1 277.1 ---------------- ----------------- ----------------- Total fixed maturities................................. 19,880.5 19,108.4 19,102.5 ---------------- ----------------- ----------------- Equity securities: Common stocks: Industrial, miscellaneous and all other............ 39.8 25.6 25.6 Mortgage loans on real estate.......................... 3,270.0 3,239.3 3,270.0 Real estate............................................ 523.6 xxx 523.6 Real estate acquired in satisfaction of debt........... 443.9 xxx 443.9 Real estate joint ventures............................. 192.7 xxx 192.7 Policy loans........................................... 2,257.3 2,359.5 2,257.3 Other limited partnership interests.................... 647.9 647.9 647.9 Other invested assets.................................. 914.7 914.7 914.7 ---------------- ----------------- ----------------- Total Investments...................................... $ 28,170.4 $ 26,295.4 $ 27,378.2 ================ ================= =================
(A) Cost for fixed maturities represents original cost, reduced by repayments and writedowns and adjusted for amortization of premiums or accretion of discount; for equity securities, cost represents original cost; for other limited partnership interests, cost represents original cost adjusted for equity in earnings and distributions. 2 AXA FINANCIAL, INC. SCHEDULE II BALANCE SHEETS (PARENT COMPANY) DECEMBER 31, 1999 AND 1998
1999 1998 ----------------- ---------------- (IN MILLIONS) ASSETS Investment in consolidated subsidiaries................................ $ 7,123.8 $ 6,425.7 Fixed maturities available for sale, at estimated fair value (amortized costs, $245.5 and $446.0)............................... 241.4 447.6 Other invested assets.................................................. 66.5 98.2 ----------------- ---------------- Total investments................................................ 7,431.7 6,971.5 Cash and cash equivalents.............................................. 138.7 36.2 Other assets........................................................... 14.4 15.5 ----------------- ---------------- TOTAL ASSETS........................................................... $ 7,584.8 $ 7,023.2 ================= ================ LIABILITIES Short-term and long-term debt.......................................... $ 1,110.8 $ 1,140.6 Accrued liabilities.................................................... 635.1 189.5 ----------------- ---------------- Total liabilities................................................ 1,745.9 1,330.1 ----------------- ---------------- SHAREHOLDERS' EQUITY Series D convertible preferred stock................................... 239.7 259.8 Stock employee compensation trust...................................... (239.7) (259.8) Common stock, at par value............................................. 4.5 2.2 Capital in excess of par value......................................... 3,739.1 3,662.1 Treasury stock......................................................... (490.8) (247.1) Retained earnings...................................................... 3,008.6 1,926.1 Accumulated comprehensive income....................................... (422.5) 349.8 ----------------- ---------------- Total shareholders' equity....................................... 5,838.9 5,693.1 ----------------- ---------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY............................. $ 7,584.8 $ 7,023.2 ================= ================
The financial information of AXA Financial, Inc. (Parent Company) should be read in conjunction with the Consolidated Financial Statements and Notes contained in Exhibit 99.1 attached hereto. For information regarding Capital Stock see Note 11 of Notes to Consolidated Financial Statements contained in Exhibit 99.1 attached hereto. Effective December 31, 1999, the Holding Company assumed primary liability from Equitable Life for all current and future obligations of its Excess Retirement Plan, Supplemental Executive Retirement Plan and certain other employee benefit plans that provide participants with medical, life insurance and deferred compensation benefits. The amount of liability associated with employee benefits assumed was $676.5 million. In addition, Equitable Life transferred the deferred tax assets totaling $236.8 million related to the assumed employee benefit plans to the Holding Company. 3 AXA FINANCIAL, INC. SCHEDULE II STATEMENTS OF EARNINGS (PARENT COMPANY) YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
1999 1998 1997 ----------------- ----------------- --------------- (IN MILLIONS, EXCEPT PER SHARE AMOUNTS) REVENUES Equity in earnings from continuing operations............ $ 375.1 $ 563.4 $ 386.5 Net investment income.................................... 32.4 43.0 32.4 Investment gains, net.................................... 126.3 22.8 5.1 ----------------- ----------------- ----------------- Total revenues..................................... 533.8 629.2 424.0 ----------------- ----------------- ----------------- EXPENSES Interest expense......................................... 86.5 77.2 61.9 General and administrative expenses...................... 20.5 19.2 24.6 ----------------- ----------------- ----------------- Total expenses..................................... 107.0 96.4 86.5 ----------------- ----------------- ----------------- Earnings from continuing operations before Federal income taxes .................................. 426.8 532.8 337.5 Federal income tax benefit............................... 41.1 19.0 15.9 ----------------- ----------------- ----------------- Earnings from continuing operations...................... 467.9 551.8 353.4 Earnings (loss) from discontinued operations, net of Federal income taxes: Investment Banking and Brokerage segment............. 630.1 278.6 294.8 Other................................................ 28.1 2.7 (87.2) ----------------- ----------------- ----------------- Net earnings............................................. 1,126.1 833.1 561.0 Dividends on preferred stocks............................ - - 15.6 ----------------- ----------------- ----------------- Net Earnings Applicable to Common Shares................. $ 1,126.1 $ 833.1 $ 545.4 ================= ================= ================= Per Common Share: Basic: Earnings from continuing operations.................. $ 1.07 $ 1.24 $ .84 Discontinued operations, net of Federal income taxes....................................... 1.51 .64 .51 ----------------- ----------------- ----------------- Net Earnings......................................... $ 2.58 $ 1.88 $ 1.35 ================= ================= ================= Diluted: Earnings from continuing operations.................. $ 1.04 $ 1.22 $ .81 Discontinued operations, net of Federal income taxes....................................... 1.41 .59 .43 ----------------- ----------------- ----------------- Net Earnings......................................... $ 2.45 $ 1.81 $ 1.24 ================= ================= ================= Cash Dividend Per Common Share......................... $ .10 $ .10 $ .10 ================= ================= =================
4 AXA FINANCIAL, INC. SCHEDULE II STATEMENTS OF CASH FLOWS (PARENT COMPANY) YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
1999 1998 1997 ----------------- ----------------- --------------- (DOLLARS IN MILLIONS) Net earnings............................................. $ 1,126.1 $ 833.1 $ 561.0 Adjustments to reconcile net earnings to net cash provided (used) by operating activities: Equity in net earnings of subsidiaries................. (1,033.3) (844.7) (594.1) Dividends from subsidiaries............................ 162.2 11.9 11.7 Investment gains, net.................................. (126.3) (22.8) (5.1) Change in Federal income tax liability................. (3.4) (16.8) (150.0) Other.................................................. 15.7 3.7 12.6 ----------------- ----------------- ----------------- Net cash provided (used) by operating activities......... 141.0 (35.6) (163.9) ----------------- ----------------- ----------------- Cash flows from investing activities: Maturities and repayments.............................. 63.5 160.7 99.1 Sales.................................................. 502.6 711.7 527.9 Purchases.............................................. (379.2) (1,128.5) (524.2) Net change in short-term investments................... (1.3) - 4.1 Other.................................................. 14.2 (12.8) 36.6 ----------------- ----------------- ----------------- Net cash provided (used) by investing activities......... 199.8 (268.9) 143.5 ----------------- ----------------- ----------------- Cash flows from financing activities: Additions to long-term debt............................ - 596.7 - Repayment of short-term debt........................... (30.0) (25.0) (20.0) Dividends paid to shareholders......................... (43.8) (44.6) (46.8) Proceeds from issuance of common stock................. 79.2 30.2 87.2 Purchase of treasury stock............................. (243.7) (247.1) - Other.................................................. - 10.0 (4.5) ----------------- ----------------- ----------------- Net cash (used) provided by financing activities......... (238.3) 320.2 15.9 ----------------- ----------------- ----------------- Change in cash and cash equivalents...................... 102.5 15.7 (4.5) Cash and cash equivalents, beginning of year............. 36.2 20.5 25.0 ----------------- ----------------- ----------------- Cash and Cash Equivalents, End of Year................... $ 138.7 $ 36.2 $ 20.5 ================= ================= ================= Supplemental cash flow information Interest Paid.......................................... $ 85.2 $ 65.9 $ 64.9 ================= ================= ================= Income Taxes Paid...................................... $ 70.2 $ 254.3 $ 330.0 ================= ================= =================
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AXA FINANCIAL, INC. SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION AT AND FOR THE YEAR ENDED DECEMBER 31, 1999 FUTURE POLICY POLICY AMORTIZATION DEFERRED BENEFITS CHARGES (1) POLICYHOLDERS' OF DEFERRED (2) POLICY POLICYHOLDERS' AND OTHER AND NET BENEFITS AND POLICY OTHER ACQUISITION ACCOUNT POLICYHOLDERS' PREMIUM INVESTMENT INTEREST ACQUISITION OPERATING SEGMENT COSTS BALANCE FUNDS REVENUE INCOME CREDITED COST EXPENSE ------------------------ ------------ ------------- ------------- ---------- -------- ------------ ------------ --------- (IN MILLIONS) Financial Advisory/ Insurance............ $ 4,033.0 $ 21,351.4 $ 4,777.6 $ 1,815.7 $ 2,205.9 $ 2,116.8 $ 446.2 $ 1,062.2 Investment Management........... - - - - 13.4 - - 1,413.1 Consolidation/ Elimination.......... - - - - 44.0 - - (32.4) ------------ ----------------------------- ------------ ------------- ------------- --------- ----------- Total.................. $ 4,033.0 $ 21,351.4 $ 4,777.6 $ 1,815.7 $ 2,263.3 $ 2,116.8 $ 446.2 $ 2,442.9 ============ ============================= ============ ============= ============= ========= =========== (1) Net investment income is based upon specific identification of portfolios within segments. (2) Operating expenses are principally incurred directly by a segment.
6 AXA FINANCIAL, INC. SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION AT AND FOR THE YEAR ENDED DECEMBER 31, 1998
FUTURE POLICY POLICY AMORTIZATION DEFERRED BENEFITS CHARGES (1) POLICYHOLDERS' OF DEFERRED (2) POLICY POLICYHOLDERS' AND OTHER AND NET BENEFITS AND POLICY OTHER ACQUISITION ACCOUNT POLICYHOLDERS' PREMIUM INVESTMENT INTEREST ACQUISITION OPERATING SEGMENT COSTS BALANCE FUNDS REVENUE INCOME CREDITED COST EXPENSE ------------------------ ------------ ------------- ------------- ---------- -------- ------------ ------------ --------- (IN MILLIONS) Financial Advisory/ Insurance............ $ 3,563.8 $ 20,857.7 $ 4,726.4 $ 1,644.3 $ 2,196.2 $ 2,178.2 $ 293.3 $ 962.0 Investment Management........... - - - - 14.9 .1 - 1,025.7 Consolidation/ Elimination.......... - - - - 44.8 - - (15.2) ----------- ---------- ---------- ---------- ---------- ---------- --------- ----------- Total.................. $ 3,563.8 $ 20,857.7 $ 4,726.4 $ 1,644.3 $ 2,255.9 $ 2,178.3 $ 293.3 $ 1,972.5 =========== ========== ========== ========== ========== ========== ========= =========== (1) Net investment income is based upon specific identification of portfolios within segments. (2) Operating expenses are principally incurred directly by a segment.
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AXA FINANCIAL, INC. SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION AT AND FOR THE YEAR ENDED DECEMBER 31, 1997 POLICY AMORTIZATION CHARGES (1) POLICYHOLDERS' OF DEFERRED (2) AND NET BENEFITS AND POLICY OTHER PREMIUM INVESTMENT INTEREST ACQUISITION OPERATING SEGMENT REVENUE INCOME CREDITED COST EXPENSE ----------------------------------- ------------- ---------- -------------- -------------- ------------- (IN MILLIONS) Financial Advisory/Insurance....... $ 1,552.0 $ 2,232.4 $ 2,245.4 $ 287.9 $ 1,034.4 Investment Management.............. .1 16.9 - - 962.6 Consolidation/Elimination.......... - 56.9 - - (20.0) ------------ ---------- ----------- ---------- ----------- Total.............................. $ 1,552.1 $ 2,306.2 $ 2,245.4 $ 287.9 $ 1,977.0 ============ ========== =========== ========== =========== (1) Net investment income is based upon specific identification of portfolios within segments. (2) Operating expenses are principally incurred directly by a segment.
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AXA FINANCIAL, INC. SCHEDULE IV REINSURANCE (A) AT AND FOR THE YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997 ASSUMED PERCENTAGE CEDED TO FROM OF AMOUNT GROSS OTHER OTHER NET ASSUMED AMOUNT COMPANIES COMPANIES AMOUNT TO NET ----------------- ---------------- ----------------- --------------- --------------- (IN MILLIONS) 1999 Life insurance in force(B)... $ 256,231.0 $ 40,892.0 $ 44,725.0 $ 260,064.0 17.20% ================= ================ ================= =============== Premiums: Life insurance and annuities.................. $ 247.9 $ 42.6 $ 131.9 $ 337.2 39.12% Accident and health.......... 172.8 26.6 74.8 221.0 33.85% ----------------- ---------------- ----------------- --------------- Total Premiums............... $ 420.7 $ 69.2 $ 206.7 $ 558.2 37.03% ================= ================ ================= =============== 1998 Life insurance in force(B)... $ 246,910.0 $ 34,471.0 $ 47,957.0 $ 260,396.0 18.42% ================= ================ ================= =============== Premiums: Life insurance and annuities.................. $ 254.6 $ 30.2 $ 122.7 $ 347.1 35.35% Accident and health.......... 185.5 25.4 80.9 241.0 33.57% ----------------- ---------------- ----------------- --------------- Total Premiums............... $ 440.1 $ 55.6 $ 203.6 $ 588.1 34.62% ================= ================ ================= =============== 1997 Life insurance in force(B)... $ 238,336.0 $ 17,004.1 $ 44,708.3 $ 266,040.2 16.81% ================= ================ ================= =============== Premiums: Life insurance and annuities.................. $ 248.9 $ 18.3 $ 124.1 $ 354.7 34.99% Accident and health.......... 201.3 28.7 74.2 246.8 30.06% ----------------- ---------------- ----------------- --------------- Total Premiums............... $ 450.2 $ 47.0 $ 198.3 $ 601.5 32.97% ================= ================ ================= ===============
(A) Includes amounts related to the discontinued group life and health business. (B) Includes in force business related to the Closed Block. 9