The following table provides information relating to fixed maturities and equity securities classified as AFS:

Available-for-Sale Securities by Classification

					Gross		Gross
			Amortized		Unrealized		Unrealized		Fair		OTTI
			Cost		Gains		Losses		Value		in AOCI⁽³⁾

			(In Millions)

September 30, 2011:
Fixed Maturities:
	Corporate		$	28,975	$	2,531	$	153	$	31,353	$	-
	U.S. Treasury, government
		and agency		5,852		426		1		6,277		-
	States and political subdivisions			548		72		2		618		-
	Foreign governments			578		69		2		645		-
	Commercial mortgage-backed			1,604		10		539		1,075		24
	Residential mortgage-backed⁽¹⁾			2,337		125		-		2,462		-
	Asset-backed⁽²⁾			594		17		11		600		6
	Redeemable preferred stock			1,488		35		170		1,353		-
		Total Fixed Maturities		41,976		3,285		878		44,383		30

Equity securities				22		-		-		22		-

Total at September 30, 2011			$	41,998	$	3,285	$	878	$	44,405	$	30

December 31, 2010:
Fixed Maturities:
	Corporate		$	27,963	$	1,903	$	133	$	29,733	$	-
	U.S. Treasury, government
		and agency		5,180		50		110		5,120		-
	States and political subdivisions			586		11		20		577		-
	Foreign governments			581		65		2		644		-
	Commercial mortgage-backed			1,807		5		487		1,325		25
	Residential mortgage-backed⁽¹⁾			2,195		93		1		2,287		-
	Asset-backed⁽²⁾			476		15		12		479		7
	Redeemable preferred stock			1,704		24		95		1,633		-
		Total Fixed Maturities		40,492		2,166		860		41,798		32

Equity securities				30		-		2		28		-

Total at December 31, 2010			$	40,522	$	2,166	$	862	$	41,826	$	32

At September 30, 2011 and December 31, 2010, respectively, AXA Financial had trading fixed maturities with an amortized cost of $195 million and $207 million and carrying values of $195 million and $208 million. Gross unrealized gains on trading fixed maturities were $1 million and $3 million and gross unrealized losses were $1 million and $2 million at September 30, 2011 and December 31, 2010, respectively.

The contractual maturities of AFS fixed maturities (excluding redeemable preferred stock) at September 30, 2011 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Available-for-Sale Fixed Maturities
Contractual Maturities at September 30, 2011

		Amortized Cost		Fair Value

		(In Millions)

Due in one year or less		$	2,883	$	2,934
Due in years two through five			13,718		14,505
Due in years six through ten			13,856		15,099
Due after ten years			5,496		6,355
	Subtotal		35,953		38,893
Commercial mortgage-backed securities			1,604		1,075
Residential mortgage-backed securities			2,337		2,462
Asset-backed securities			594		600
Total		$	40,488	$	43,030

For the first nine months of 2011 and 2010, proceeds received on sales of fixed maturities classified as AFS amounted to $537 million and $1,110 million, respectively. Gross gains of $16 million and $35 million and gross losses of $8 million and $36 million were realized on these sales for the first nine months of 2011 and 2010, respectively. The change in unrealized investment gains (losses) related to fixed maturities classified as AFS for the first nine months of 2011 and 2010 amounted to $1,101 million and $2,517 million, respectively.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010

	(In Millions)

Credit losses recognized in earnings (loss)	$	-	$	(169)	$	(24)	$	(259)
Non-credit losses recognized in OCI		-		(11)		(1)		(17)
Total OTTI	$	-	$	(180)	$	(25)	$	(276)

The following table sets forth the amount of credit loss impairments on fixed maturity securities held by the Insurance Group at the dates indicated and the corresponding changes in such amounts.

	Fixed Maturities - Credit Loss Impairments

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2011		2010		2011		2010

		(In Millions)

Balances, beginning of period		$	(537)	$	(287)	$	(553)	$	(292)
Previously recognized impairments on securities that matured,
	paid, prepaid or sold		2		13		42		108
Recognized impairments on securities impaired to fair value this period⁽¹⁾			-		-		-		-
Impairments recognized this period on securities not previously impaired			-		(169)		(24)		(245)
Additional impairments this period on securities previously impaired			-		-		-		(14)
Increases due to passage of time on previously recorded credit losses			-		-		-		-
Accretion of previously recognized impairments due to increases in
	expected cash flows		-		-		-		-
Balances at September 30,		$	(535)	$	(443)	$	(535)	$	(443)

Net unrealized investment gains (losses) on fixed maturities and equity securities classified as AFS are included in the consolidated balance sheets as a component of AOCI. The table below presents these amounts as of the dates indicated:

Changes in net unrealized investment gains (losses) recognized in AOCI include reclassification adjustments to reflect amounts realized in Net earnings (loss) for the current period that had been part of OCI in earlier periods. The tables that follow below present a rollforward of net unrealized investment gains (losses) recognized in AOCI, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other:

Net Unrealized Gains (Losses) on Fixed Maturities with OTTI Losses

											AOCI Gain
			Net								(Loss) Related
			Unrealized						Deferred		to Net
			Gains						Income		Unrealized
			(Losses) on		DAC and		Policyholders		Tax Asset		Investment
			Investments		VOBA		Liabilities		(Liability)		Gains (Losses)

			(In Millions)

Balance, July 1, 2011			$	(9)	$	3	$	(7)	$	5	$	(8)
Net investment gains (losses)
	arising during the period			(31)		-		-		-		(31)
Reclassification adjustment for OTTI losses:
		Included in Net earnings (loss)		-		-		-		-		-
		Excluded from net earnings (loss)⁽¹⁾		-		-		-		-		-
Impact of net unrealized investment gains
	(losses) on:
		DAC and VOBA		-		2		-		-		2
		Deferred income taxes		-		-		-		8		8
		Policyholders liabilities		-		-		8		-		8
Balance, September 30, 2011			$	(40)	$	5	$	1	$	13	$	(21)

Balance, July 1, 2010			$	(5)	$	-	$	(1)	$	2	$	(4)
Net investment gains (losses)
	arising during the period			2		-		-		-		2
Reclassification adjustment for OTTI losses:
		Excluded from Net earnings (loss)⁽¹⁾		(11)		-		-		-		(11)
Impact of net unrealized investment gains
	(losses) on:
		DAC and VOBA		-		2		-		-		2
		Deferred income taxes		-		-		-		3		3
		Policyholders liabilities		-		-		(2)		-		(2)
Balance, September 30, 2010			$	(14)	$	2	$	(3)	$	5	$	(10)

(1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss.

											AOCI Gain
			Net								(Loss) Related
			Unrealized						Deferred		to Net
			Gains						Income		Unrealized
			(Losses) on		DAC and		Policyholders		Tax Asset		Investment
			Investments		VOBA		Liabilities		(Liability)		Gains (Losses)

			(In Millions)

Balance, January 1, 2011			$	(20)	$	3	$	(2)	$	7	$	(12)
Net investment gains (losses)
	arising during the period			(19)		-		-		-		(19)
Reclassification adjustment for OTTI losses:
		Included in Net earnings (loss)		-		-		-		-		-
		Excluded from net earnings (loss)⁽¹⁾		(1)		-		-		-		(1)
Impact of net unrealized investment gains
	(losses) on:
		DAC and VOBA		-		2		-		-		2
		Deferred income taxes		-		-		-		6		6
		Policyholders liabilities		-		-		3		-		3
Balance, September 30, 2011			$	(40)	$	5	$	1	$	13	$	(21)

Balance, January 1, 2010			$	(13)	$	5	$	(1)	$	3	$	(6)
Net investment gains (losses)
	arising during the period			2		-		-		-		2
Reclassification adjustment for OTTI losses:
		Included in Net earnings (loss)		14		-		-		-		14
		Excluded from Net earnings (loss)⁽¹⁾		(17)		-		-		-		(17)
Impact of net unrealized investment gains
	(losses) on:
		DAC and VOBA		-		(3)		-		-		(3)
		Deferred income taxes		-		-		-		2		2
		Policyholders liabilities		-		-		(2)		-		(2)
Balance, September 30, 2010			$	(14)	$	2	$	(3)	$	5	$	(10)

(1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss.

All Other Net Unrealized Investment Gains (Losses) in AOCI

											AOCI Gain
			Net								(Loss) Related
			Unrealized						Deferred		to Net
			Gains						Income		Unrealized
			(Losses) on		DAC and		Policyholders		Tax Asset		Investment
			Investments		VOBA		Liabilities		(Liability)		Gains (Losses)

			(In Millions)

Balance, July 1, 2011			$	1,720	$	(195)	$	(388)	$	(399)	$	738
Net investment gains (losses) arising
	during the period			713		-		-		-		713
Reclassification adjustment for OTTI losses:
		Included in Net earnings (loss)		14		-		-		-		14
		Excluded from Net earnings (loss)⁽¹⁾		-		-		-		-		-
Impact of net unrealized investment gains
	(losses) on:
		DAC and VOBA		-		(35)		-		-		(35)
		Deferred income taxes		-		-		-		(141)		(141)
		Policyholders liabilities		-		-		(285)		-		(285)
Balance, September 30, 2011			$	2,447	$	(230)	$	(673)	$	(540)	$	1,004

Balance, July 1, 2010			$	1,213	$	(96)	$	(361)	$	(267)	$	489
Net investment gains (losses) arising
	during the period			1,060		-		-		-		1,060
Reclassification adjustment for OTTI losses:
		Included in Net earnings (loss)		162		-		-		-		162
		Excluded from Net earnings (loss)⁽¹⁾		11		-		-		-		11
Impact of net unrealized investment gains
	(losses) on:
		DAC and VOBA		-		(127)		-		-		(127)
		Deferred income taxes		-		-		-		(302)		(302)
		Policyholders liabilities		-		-		(240)		-		(240)
Balance, September 30, 2010			$	2,446	$	(223)	$	(601)	$	(569)	$	1,053

(1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss.

											AOCI Gain
			Net								(Loss) Related
			Unrealized						Deferred		to Net
			Gains						Income		Unrealized
			(Losses) on		DAC and		Policyholders		Tax Asset		Investment
			Investments		VOBA		Liabilities		(Liability)		Gains (Losses)

			(In Millions)

Balance, January 1, 2011			$	1,324	$	(154)	$	(311)	$	(303)	$	556
Net investment gains (losses) arising
	during the period			1,123		-		-		-		1,123
Reclassification adjustment for OTTI losses:
		Included in Net earnings (loss)		(1)		-		-		-		(1)
		Excluded from Net earnings (loss)⁽¹⁾		1		-		-		-		1
Impact of net unrealized investment gains
	(losses) on:
		DAC and VOBA		-		(76)		-		-		(76)
		Deferred income taxes		-		-		-		(237)		(237)
		Policyholders liabilities		-		-		(362)		-		(362)
Balance, September 30, 2011			$	2,447	$	(230)	$	(673)	$	(540)	$	1,004

Balance, January 1, 2010			$	(61)	$	(29)	$	(68)	$	75	$	(83)
Net investment gains (losses) arising
	during the period			2,289		-		-		-		2,289
Reclassification adjustment for OTTI losses:
		Included in Net earnings (loss)		200		-		-		-		200
		Excluded from Net earnings (loss)⁽¹⁾		18		-		-		-		18
Impact of net unrealized investment gains
	(losses) on:
		DAC and VOBA		-		(194)		-		-		(194)
		Deferred income taxes		-		-		-		(644)		(644)
		Policyholders liabilities		-		-		(533)		-		(533)
Balance, September 30, 2010			$	2,446	$	(223)	$	(601)	$	(569)	$	1,053

(1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss.

The following tables disclose the fair values and gross unrealized losses of the 589 issues at September 30, 2011 and the 649 issues at December 31, 2010 of fixed maturities that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated:

			Less Than 12 Months				12 Months or Longer				Total
					Gross				Gross				Gross
					Unrealized				Unrealized				Unrealized
			Fair Value		Losses		Fair Value		Losses		Fair Value		Losses

			(In Millions)
September 30, 2011:
Fixed Maturities:
	Corporate		$	2,509	$	(107)	$	413	$	(46)	$	2,922	$	(153)
	U.S. Treasury, government
		and agency		941		(1)		-		-		941		(1)
	States and political subdivisions			-		-		23		(2)		23		(2)
	Foreign governments			30		(2)		5		-		35		(2)
	Commercial mortgage-backed			113		(19)		898		(520)		1,011		(539)
	Residential mortgage-backed			-		-		-		-		-		-
	Asset-backed			142		-		55		(11)		197		(11)
	Redeemable preferred stock			607		(40)		371		(130)		978		(170)

		Total	$	4,342	$	(169)	$	1,765	$	(709)	$	6,107	$	(878)

December 31, 2010:
Fixed Maturities:
	Corporate		$	2,640	$	(83)	$	532	$	(50)	$	3,172	$	(133)
	U.S. Treasury, government
		and agency		1,818		(56)		202		(54)		2,020		(110)
	States and political subdivisions			283		(13)		37		(7)		320		(20)
	Foreign governments			79		(2)		10		-		89		(2)
	Commercial mortgage-backed			80		(4)		1,115		(483)		1,195		(487)
	Residential mortgage-backed			157		-		2		(1)		159		(1)
	Asset-backed			114		(1)		74		(11)		188		(12)
	Redeemable preferred stock			327		(7)		972		(88)		1,299		(95)

		Total	$	5,498	$	(166)	$	2,944	$	(694)	$	8,442	$	(860)

The Insurance Group's investments in fixed maturity securities do not include concentrations of credit risk of any single issuer greater than 10% of the consolidated equity of AXA Financial, other than securities of the U.S. government, U.S. government agencies, and certain securities guaranteed by the U.S. government. The Insurance Group maintains a diversified portfolio of corporate securities across industries and issuers and does not have exposure to any single issuer in excess of 0.28% of total investments. The largest exposures to a single issuer of corporate securities held at September 30, 2011 and December 31, 2010 were $180 million and $178 million, respectively. Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the NAIC designation of 3 (medium grade), 4 or 5 (below investment grade) or 6 (in or near default). At September 30, 2011 and December 31, 2010, respectively, approximately $2,853 million and $2,919 million, or 6.8% and 7.2%, of the $41,976 million and $40,492 million aggregate amortized cost of fixed maturities held by the Insurance Group were considered to be other than investment grade. These securities had net unrealized losses of $592 million and $471 million at September 30, 2011 and December 31, 2010, respectively.

The Insurance Group does not originate, purchase or warehouse residential mortgages and is not in the mortgage servicing business. The Insurance Group's fixed maturity investment portfolio includes RMBS backed by subprime and Alt-A residential mortgages, comprised of loans made by banks or mortgage lenders to residential borrowers with lower credit ratings. The criteria used to categorize such subprime borrowers include FICO scores, interest rates charged, debt-to-income ratios and loan-to-value ratios. Alt-A residential mortgages are mortgage loans where the risk profile falls between prime and subprime; borrowers typically have clean credit histories but the mortgage loan has an increased risk profile due to higher loan-to-value and debt-to-income ratios and/or inadequate documentation of the borrowers' income. At September 30, 2011 and December 31, 2010, respectively, the Insurance Group owned $36 million and $42 million in RMBS backed by subprime residential mortgage loans and $14 million and $17 million in RMBS backed by Alt-A residential mortgage loans. RMBS backed by subprime and Alt-A residential mortgages are fixed income investments supporting General Account liabilities.

At September 30, 2011, the carrying value of fixed maturities that were non-income producing for the twelve months preceding that date was $32 million.

For the third quarter and first nine months of 2011 and 2010, investment income is shown net of investment expenses of $48 million, $111 million, $36 million and $100 million, respectively.

At September 30, 2011 and December 31, 2010, respectively, the amortized cost of AXA Financial Group's trading account securities was $3,162 million and $3,076 million with respective fair values of $3,287 million and $2,990 million. Included in the trading classification at September 30, 2011 and December 31, 2010, respectively, were U.S. Treasury securities with aggregate amortized costs of $2,575 million and $2,594 million and fair values of $2,756 million and $2,485 million, pledged under repos accounted for as collateralized borrowings and reported in Broker-dealer related payables in the consolidated balance sheets. Also at September 30, 2011 and December 31, 2010, respectively, Other equity investments included the General Account's investment in Separate Accounts which had carrying values of $45 million and $43 million and costs of $51 million and $42 million as well as other equity securities with carrying values of $22 million and $28 million and costs of $22 million and $30 million.

In the third quarter and first nine months of 2011 and 2010, respectively, net unrealized and realized holding gains (losses) on trading account equity securities, including earnings (losses) on the General Account's investment in Separate Accounts, of $(80) million, $(71) million, $45 million and $15 million, respectively, were included in Net investment income (loss) in the consolidated statements of earnings (loss).

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 September 30, 2011 and December 31, 2010, the carrying values of commercial and agricultural mortgage loans on real estate that had been classified as nonaccrual loans were $59 million and $16 million for commercial and $10 million and $3 million for agricultural, respectively.

In the first quarter of 2011 the loan shown in the table below was modified from amortizing to interest only payments until February 1, 2012 when the loan reverts back to its normal amortizing payment. Due to the nature of the modification, short-term principal amortization relief, the modification has no financial impact. The fair market value of the underlying real estate collateral is the primary factor in determining the allowance for credit losses and as such, modifications of loan terms typically have no direct impact on the allowance for credit losses.

Troubled Debt Restructuring - Modifications
September 30, 2011

		Number		Outstanding Recorded Investment
		of Loans		Pre-Modification		Post - Modification

				(In Millions)
Troubled debt restructurings:
	Agricultural mortgage loans		-	$	-	$	-
	Commercial mortgage loans		1		57		57
Total			1	$	57	$	57

There were no default payments on the above loan during the third quarter and first nine months of 2011.

Allowance for credit losses for mortgage loans for the first nine months of 2011 are as follows:

	Mortgage Loans
	Commercial		Agricultural		Total

Allowance for credit losses:	(In Millions)

Beginning balance, January 1,	$	49	$	-	$	49
Charge-offs		-		-		-
Recoveries		(13)		-		(13)
Provision		25		-		25
Ending balance, September 30,	$	61	$	-	$	61

Ending balance, September 30,:
Individually Evaluated for Impairment	$	61	$	-	$	61

Collectively Evaluated for Impairment	$	-	$	-	$	-

Loans Acquired with Deteriorated Credit Quality	$	-	$	-	$	-

The values used in these ratio calculations were developed as part of the periodic review of the commercial and agricultural mortgage loan portfolio, which includes an evaluation of the underlying collateral value. The following table provides information relating to the debt service coverage ratio for commercial and agricultural mortgage loans at September 30, 2011.

Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios
September 30, 2011

		Debt Service Coverage Ratio
												Less		Total
		Greater		1.8x to		1.5x to		1.2x to		1.0x to		than		Mortgage
Loan-to-Value Ratio:⁽²⁾		than 2.0x		2.0x		1.8x		1.5x		1.2x		1.0x		Loans

		(In Millions)
Commercial Mortgage Loans⁽¹⁾
0% - 50%		$	143	$	13	$	33	$	49	$	47	$	11	$	296
50% - 70%			176		308		652		246		90		2		1,474
70% - 90%			42		9		447		642		223		55		1,418
90% plus			60		-		27		111		539		58		795
Total Commercial
	Mortgage Loans	$	421	$	330	$	1,159	$	1,048	$	899	$	126	$	3,983

Agricultural Mortgage Loans⁽¹⁾
0% - 50%		$	152	$	83	$	176	$	268	$	205	$	64	$	948
50% - 70%			53		14		107		151		83		34		442
70% - 90%			-		-		-		1		-		3		4
90% plus			-		-		-		-		-		-		-
Total Agricultural
	Mortgage Loans	$	205	$	97	$	283	$	420	$	288	$	101	$	1,394

Total Mortgage Loans⁽¹⁾
0% - 50%		$	295	$	96	$	209	$	317	$	252	$	75	$	1,244
50% - 70%			229		322		759		397		173		36		1,916
70% - 90%			42		9		447		643		223		58		1,422
90% plus			60		-		27		111		539		58		795

Total Mortgage Loans		$	626	$	427	$	1,442	$	1,468	$	1,187	$	227	$	5,377

The following table provides information relating to the aging analysis of past due mortgage loans at September 30, 2011.

Age Analysis of Past Due Mortgage Loans

														Recorded
														Investment
						90						Total		> 90 Days
		30-59		60-89		Days						Financing		and
		Days		Days		or >		Total		Current		Receivables		Accruing

								(In Millions)

	Commercial	$	61	$	-	$	-	$	61	$	3,922	$	3,983	$	-
	Agricultural		6		27		11		44		1,350		1,394		1
Total Mortgage Loans		$	67	$	27	$	11	$	105	$	5,272	$	5,377	$	1

The following table provides information regarding impaired loans at September 30, 2011 and December 31, 2010, respectively.

Impaired Mortgage Loans

				Unpaid				Average		Interest
		Recorded		Principal		Related		Recorded		Income
		Investment		Balance		Allowance		Investment⁽¹⁾		Recognized

		(In Millions)
September 30, 2011:
With no related allowance recorded:
	Commercial mortgage loans - other	$	-	$	-	$	-	$	-	$	-
	Agricultural mortgage loans		10		10		-		5		-
Total		$	10	$	10	$	-	$	5	$	-

With related allowance recorded:
	Commercial mortgage loans - other	$	294	$	294	$	(61)	$	251	$	9
	Agricultural mortgage loans		-		-		-		-		-
Total		$	294	$	294	$	(61)	$	251	$	9

December 31, 2010:
With no related allowance recorded:
	Commercial mortgage loans - other	$	-	$	-	$	-	$	-	$	-
	Agricultural mortgage loans		3		3		-		2		-
Total		$	3	$	3	$	-	$	2	$	-

With related allowance recorded:
	Commercial mortgage loans - other	$	262	$	262	$	(49)	$	160	$	10
	Agricultural mortgage loans		-		-		-		-		-
Total		$	262	$	262	$	(49)	$	160	$	10

The Insurance Group has issued and continues to offer certain variable annuity products with GMDB, GMIB and GWBL 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/GWBL feature is that under-performance of the financial markets could result in GMIB/GWBL benefits being higher than what accumulated policyholders' account balances would support. AXA Financial Group uses derivatives for asset/liability risk management primarily to reduce exposures to equity market declines and interest rate fluctuations. Derivative hedging strategies are designed to reduce these risks from an economic perspective while also considering their impacts on accounting results. Operation of these hedging programs is based on models involving numerous estimates and assumptions, including, among others, mortality, lapse, surrender and withdrawal rates, election rates, market volatility and interest rates.

A wide range of derivative contracts are used in these hedging programs, including exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, swaptions, variance swaps, equity options as well as repo transactions. For GMDB, GMIB and GWBL, AXA Financial Group retains certain risks including basis and some volatility risk and risk associated with actual versus expected assumptions for mortality, lapse and surrender, withdrawal and contractholder election rates, among other things. The derivative contracts are managed to correlate with changes in the value of the GMDB, GMIB and GWBL features that result from financial markets movements. It also uses repos to finance the purchase of U.S. Treasury securities to reduce the economic impact of unfavorable changes in exposures attributable to interest rates as part of the variable annuity hedging strategy. Since 2010, a portion of exposure to realized interest rate volatility has been hedged through the purchase of swaptions. AXA Financial Group has purchased reinsurance contracts to mitigate the risks associated with GMDB features and the impact of potential market fluctuations on future policyholder elections of GMIB features contained in certain annuity contracts issued by AXA Financial Group.

GWBL features and reinsurance contracts covering GMIB exposure are considered derivatives for accounting purposes and, therefore, are reported in the balance sheet at their fair value. None of the derivatives used in these programs were designated as qualifying hedges under U.S. GAAP accounting guidance for derivatives and hedging. All gains (losses) on derivatives are reported in Net investment income (loss) in the consolidated statements of earnings (loss) except those resulting from changes in the fair values of the embedded derivatives, the GWBL features are reported in Policyholder's benefits and the GMIB reinsurance contracts are reported on a separate line in the consolidated statement of earnings, respectively.

Since the beginning of 2010, the Insurance Group periodically, including at September 30, 2011, has had in place a hedge program to partially protect against declining interest rates with respect to a part of its projected variable annuity sales. Beginning in fourth quarter 2010, the Insurance Group purchased swaptions to initiate a hedge of its General Account duration and convexity gap resulting from minimum crediting rates on interest sensitive life and annuity business.

In addition to its hedging program that seeks to mitigate economic exposures specifically related to variable annuity contracts with GMDB, GMIB and GWBL features, the Insurance Group implemented in the past hedging programs to provide additional protection against the adverse effects of equity market and interest rate declines on its statutory liabilities. The remaining protection expired in first quarter 2011.

The table below presents quantitative disclosures about AXA Financial Group's derivative instruments, including those embedded in other contracts though required to be accounted for as derivative instruments.

Derivative Instruments by Category


								Gains (Losses)
		At September 30, 2011						Reported in
				Fair Value				Earnings (Loss)
		Notional		Asset		Liability		Nine Months Ended
		Amount		Derivatives		Derivatives		September 30, 2011

		(In Millions)
Freestanding derivatives:
Equity contracts:⁽¹⁾
	Futures	$	9,990	$	5	$	-	$	1,280
	Swaps		1,778		132		6		215
	Options		1,780		63		72		(38)

Interest rate contracts:⁽¹⁾
	Floors		9,000		358		-		128
	Swaps		19,036		1,432		664		1,357
	Futures		22,840		-		-		2,236
	Swaptions		9,998		1,502		-		1,077

Other freestanding contracts:⁽¹⁾
	Foreign currency contracts		118		2		1		1
	Net investment income (loss)								6,256

	Foreign Currency Contracts^(2,4)		3,873		-		331		(28)

Embedded derivatives:
GMIB reinsurance contracts⁽²⁾			-		2,312		-		1,089

GWBL and other features⁽³⁾			-		-		244		(206)

Total, September 30, 2011		$	78,413	$	5,806	$	1,318	$	7,111




								Gains (Losses)
		At December 31, 2010						Reported in
				Fair Value				Earnings (Loss)
		Notional		Asset		Liability		Nine Months Ended
		Amount		Derivatives		Derivatives		September 30, 2010

		(In Millions)
Freestanding derivatives:
Equity contracts:⁽¹⁾
	Futures	$	8,920	$	-	$	-	$	(803)
	Swaps		1,698		-		50		(30)
	Options		1,070		5		1		(36)

Interest rate contracts:⁽¹⁾
	Floors		9,000		326		-		218
	Swaps		12,166		389		366		1,549
	Futures		14,859		-		-		1,374
	Swaptions		11,150		306		-		93

Other freestanding contracts:⁽¹⁾
	Foreign currency contracts		133		-		1		1
	Net investment income (loss)								2,366

	Foreign Currency Contracts^(2,4)		3,873		-		303		(242)

Embedded derivatives:
GMIB reinsurance contracts⁽²⁾			-		1,223		-		894

GWBL and other features⁽³⁾			-		-		38		(168)

Total		$	62,869	$	2,249	$	759	$	2,850

Margins or “spreads” on interest-sensitive life insurance and annuity contracts are affected by interest rate fluctuations as the yield on portfolio investments, primarily fixed maturities, are intended to support required payments under these contracts, including interest rates credited to their policy and contract holders. The Insurance Group currently uses interest rate floors and swaptions to reduce the risk associated with minimum crediting rate guarantees on these interest-sensitive contracts.

AXA Financial also uses interest rate swaps to reduce exposure to interest rate fluctuations on certain of its long-term loans from affiliates. In addition, AXA Financial uses foreign exchange derivatives to reduce exposure to currency fluctuations that may arise from non-U.S.-dollar denominated financial instruments. The Insurance Group is exposed to equity market fluctuations through investments in Separate Accounts and may enter into derivative contracts specifically to minimize such risk.

At September 30, 2011, AXA Financial Group had open exchange-traded futures positions on the S&P 500, Russell 1000, NASDAQ 100 and Emerging Market indices, having initial margin requirements of $762 million. At September 30, 2011, AXA Financial Group had open exchange-traded futures positions on the 2-year, 5-year, 10-year, 30-year U.S. Treasury Notes and Eurodollars having initial margin requirements of $348 million. At that same date, AXA Financial Group had open exchange-traded future positions on the Euro Stoxx, FTSE 100, EAFE and Topix indices as well as corresponding currency futures on the Euro/U.S. dollar, Yen/U.S. dollar and Pound/U.S. dollar, having initial margin requirements of $29 million. All exchange-traded futures contracts are net cash settled daily. All outstanding equity-based and treasury futures contracts at September 30, 2011 are exchange-traded and net settled daily in cash.

Although notional amount is the most commonly used measure of volume in the derivatives market, it is not used as a measure of credit risk. Generally, the current credit exposure of AXA Financial Group's derivative contracts is limited to the net positive estimated fair value of derivative contracts at the reporting date after taking into consideration the existence of netting agreements and any collateral received pursuant to credit support annexes. A derivative with positive value (a derivative asset) indicates existence of credit risk because the counterparty would owe money to AXA Financial Group if the contract were closed. Alternatively, a derivative contract with negative value (a derivative liability) indicates AXA Financial Group would owe money to the counterparty if the contract were closed. However, generally if there is more than one derivative transaction with a single counterparty, a master netting arrangement exists with respect to derivative transactions with that counterparty to provide for net settlement.

AXA Financial Group may be exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments. AXA Financial Group controls and minimizes its counterparty exposure through a credit appraisal and approval process. In addition, AXA Financial Group has executed various collateral arrangements with counterparties to over-the-counter derivative transactions that require both pledging and accepting collateral either in the form of cash or high-quality securities, such as U.S. Treasury securities or those issued by government agencies. At September 30, 2011 and December 31, 2010, respectively, AXA Financial Group held $2,547 million and $646 million in cash and securities collateral delivered by trade counterparties, representing the fair value of the related derivative agreements. This unrestricted cash collateral is reported in Cash and cash equivalents, and the obligation to return it is reported in Other liabilities in the consolidated balance sheets.

Certain of AXA Financial Group's standardized contracts for over-the-counter derivative transactions (“ISDA Master Agreements”) contain credit risk related contingent provisions related to its credit rating. In some ISDA Master Agreements, if the credit rating falls below a specified threshold, either a default or a termination event permitting the counterparty to terminate the ISDA Master Agreement would be triggered. In all agreements that provide for collateralization, various levels of collateralization of net liability positions are applicable, depending upon the credit rating of the counterparty. The aggregate fair value of all collateralized derivative transactions that were in a liability position at September 30, 2011 and December 31, 2010, respectively, were $65 million and $158 million for which AXA Financial Group had posted collateral of $60 million in 2011 and $209 million in 2010, in the normal operation of its collateral arrangements. If the investment grade related contingent features had been triggered on September 30, 2011, AXA Financial Group would not have been required to post material collateral to its counterparties.