EX-99.1 2 file002.txt CERTAIN PRESENTATION SLIDES [... and also by fostering excellence in existing entities, despite difficult equity markets since 2000 Underlying earnings in US$ (million)
French GAAP US GAAP US Life & Savings AXA Financial(2) -------------------------------------------------------------------- 2000 (1) 688 715 2003 651 464 1H2004 379 368
(1) 2000 figures grossed up for AXA Financial minorities (buyout effective January 2, 2001). (2) Represents Financial Advisory/Insurance segment after tax adjusted earnings excluding investment gains and losses and the effects of unusual or non- recurring events or transactions. [LOGO] Half Year 2004 Earnings - August 6, 2004 - Page 7 [ MONY - Expected expense savings and underlying earnings forecasts in line with acquisition assumptions o Combined AXF and MONY run-rate pre-tax merger operating expense savings of $175m starting in 2005 o Incremental 2005 after-tax underlying earnings resulting from the implementation of the MONY acquisition are expected to be in a $170-195m range at the AXA Group level under French and US GAAP (excludes cost of internal financing through AXA Group) [LOGO] Half Year 2004 Earnings - August 6, 2004 - Page 36 [ 1H04 net income included exceptional operations o Reduction of the state tax liability booked on the capital gain recorded when DLJ was sold: Euro 43m net (US $53 million) [LOGO] Half Year 2004 Earnings - August 6, 2004 - Page 44 [ DAC at June 30, 2004 Gross Net AXA Financial (Euro millions) 5,361 3,485(1)
French GAAP US GAAP ------------------------------------ ------------------------------------------- $ million DAC Account value DAC/AV DAC(A)(B) Account value(C) DAC/AV --------- --- ------------- ------ --------- ------------------- ------ Traditional Life 853 9,242 9% 861 9,242 9% Variable and interest sensitive Life 2,432 17,179 14% 2,424 17,154 14% Annuities 3,199 61,851 5% 3,192 61,897 5% Other 30 512 6% 31 512 6% -------------------------------------------------------------------------------------------------------------------------------- Total 6,515 88,784 7% 6,508 88,805 7%
(1) net of tax (A) net of initial fee liability (B) excludes impact on DAC amortization of unrealized investment gains (C) includes policyholders' account balances and future policy benefits and other policyholders liabilities net of reinsurance ceded; gross of the fair value of GMIB reinsurance contracts considered derivatives under SFAS No. 133 of $37 million [LOGO] Half Year 2004 Earnings - August 6, 2004 - Page 49 [ DAC - AXA's Reversion-to-the-mean (RTM) methodology is justified A significant assumption in the amortization of DAC on VA and VL&ISL products relates to projected future Separate Account (S/A) performance. For this purpose, AXA's RTM approach in the US assumes that markets will return to an average gross long-term return estimate of 9% within 5 years and with future annual gross returns limited to a [0%-15%] corridor.
06/30/02 12/31/02 06/30/03 12/31/03 6/30/04 -------- -------- -------- -------- ------- Gross Return assumed in: - Year 1 9% 15% 15% 5% 5% - Year 2 9% 15% 12% 9% 9% - Year 3 9% 11% 9% 9% 9% - Year 4 9% 9% 9% 9% 9% - Year 5 9% 9% 9% 9% 9% ------------------------------------------------------------------------------------------- # of yrs above the mean before reverting to the mean 0 2.5 1.25 0 0 ------------------------------------------------------------------------------------------- Year 1 Year 1 At the below the below the mean mean mean
[LOGO] Half Year 2004 Earnings - August 6, 2004 - Page 50 [ GMDB/IB/AB net reserves GMDB/IB/AB reserves based on our interpretation of DSOP
06/30/04 06/30/04 06/30/04 06/30/04 Unaudited Account % Net Amount French GAAP US GAAP figures Value reins. at Risk(1) Reserve(2) Reserve(3) ($ bn) ($ bn) ($ mm) ($ mn) --------- -------- ------- ---------- ----------- --------- GMDB o AXA Financial 50.1 24% 3.5 52 52 --------------------------------------------------------------------------------------- GMIB o AXA Financial 17.0 75% 0.1 34 89
(1) Net of reinsurance and, for GMIB, with annuity margin. (2) Net of reinsurance. (3) Net of reinsurance but gross of the fair value of GMIB reinsurance contracts considered derivatives under SFAS No. 133 of $37 million at June 30, 2004. [LOGO] Half Year 2004 Earnings - August 6, 2004 - Page 52 [ AXA Financial launched a Guaranteed Minimum Withdrawal Benefit (GMWB) on July 19 o GMWB allows limited annual withdrawals up to the initial contribution, regardless of investment performance o Risk exposure is managed through a dynamic delta hedging program o GMWB pricing is based on hedging program cost o Current guaranteed benefit hedge cost scenarios for GMDB, IB and WB:
------------------------------------------------------------------------------------------------------------------------------------ Current Estimated Hedge costs (bps) at volatilities* of: Charge --------------------------------------------------------------- ACCUMULATOR '04 (bps) 15% 22% 26% 32% ------------------------------------------------------------------------------------------------------------------------------------ GMDB Annual Ratchet 25 6 12 20 26 Greater of Ratchet & 6% rollup 60 41 46 50 54 ------------------------------------------------------------------------------------------------------------------------------------ GMIB Greater of Ratchet & 6% rollup 65 20 32 40 50 ------------------------------------------------------------------------------------------------------------------------------------ GMDB & GMIB sold together Greater of Ratchet & 6% rollup 125 66 80 92 104 ------------------------------------------------------------------------------------------------------------------------------------ GMWB 7% Withdrawal Option 50 10 34 52 79 5% Withdrawal Option 35 4 21 34 53 ------------------------------------------------------------------------------------------------------------------------------------ Representative Volatility 1 yr ended 1 yr ended LT 95th LT 99th Level of: 6/30/04 6/30/03 Percentile Percentile ------------------------------------------------------------------------------------------------------------------------------------ *Wgt avg of S&P 500, Russell & Nasdaq volatilities of: 12%, 19%, 21% 22%, 21%, 27% 23%, 30%, 46% 29%, 33%, 52% ------------------------------------------------------------------------------------------------------------------------------------
[LOGO] Half Year 2004 Earnings - August 6, 2004 - Page 54