UNITED STATES SECURITIES AND EXCHANGE
  COMMISSION  WASHINGTON, D.C. 20549


---

FORM 20-F


ANNUAL REPORT PURSUANT TO SECTION
  13 OR 15(d) 
  OF THE SECURITIES EXCHANGE ACT OF 1934for the fiscal year ended December 31, 2002

|Commission File Number:
        1-14410                                                                                                                                                                                                                                                                                                                                                        
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                               
|AXA                                                                                                                                                                                                                                                                                                                                                                                            
|(Exact name of Registrant as
        specified in its charter)                                                                                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                                                                                                                                               
|N
        / A                                                                                                                                                                                                                                                                                                                                                                                  
|(Translation
        of Registrants                                                                                                                                                                                                                                                                                                                                                           
|name
        into English)                                                                                                                                                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                                                               
|25, avenue Matignon - 75008
        Paris - France                                                                                                                                                                                                                                                                                                                                             
|(Address of registrants
        principal executive offices)                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                               
|Securities registered or to
        be registered pursuant to Section 12(b) of the Act:                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                               
|Title of each class:                                                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                                                                                               
|Ordinary shares                                                                                                                                                                                                                                                                                                                                                                                
|American Depositary Shares                                                                                                                                                                                                                                                                                                                                                                     
|(as evidenced by American Depositary
        Receipts),                                                                                                                                                                                                                                                                                                                                        
|each representing one Ordinary
        Share                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                                                                                                                               
|Securities registered or to
        be registered pursuant to Section 12(g) of the Act: None                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                                                                                                                               
|Securities for which there
        is a reporting obligation pursuant to Section 15(d) of the Act: None                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                               
|The number of outstanding shares
        of each of the issuers classes of capital or common stock as of
        March 31, 2003 was: 1,762,167,344 Ordinary Shares of euro 2.29 nominal
        value per share, including 65,553,385 American Depositary Shares (as evidenced
        by American Depositary Receipts), each representing one Ordinary Share.                                
|                                                                                                                                                                                                                                                                                                                                                                                               
|Indicate by check mark
        whether the registrant (1) has filed all reports required to be filed
        by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
        preceding 12 months (or for such shorter period that the registrant was
        required to file such reports) and (2) has been subject to such filing
        requirements for the past 90 days.
|                                                                                                                                                                                                                                                                                                                                                                                               
|Yes [X]         
        No[  ]                                                                                                                                                                                                                                                                                                                                                                
|                                                                                                                                                                                                                                                                                                                                                                                               
|Indicate by check mark which
        financial statement item the registrant has elected to follow:                                                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                                                               
|Item 17 [  ]        
        Item 18[X]                                                                                                                                                                                                                                                                                                                                                        





2

Table of contents:

|        | Presentation of Information                                                        | 3    | 
|------- | ---------------------------------------------------------------------------------- | ---- | 
|        | Exchange Rate Information                                                          | 3    | 
|        | Special Note Regarding Forward-Looking
      Statements                            | 4    | 
|        |                                                                                    |      | 
|        | Part I                                                                             |      | 
|        |                                                                                    |      | 
|Item 1  | Identity of Directors, Senior Management
      and Advisors                        | 6    | 
|Item 2  | Offer Statistics and Expected Timetable                                            | 6    | 
|Item 3  | Key Information                                                                    | 6    | 
|Item 4  | Information on the Company                                                         | 23   | 
|Item 5  | Operating and Financial Review and Prospects                                       | 64   | 
|Item 6  | Directors, Senior Management and Employees                                         | 124  | 
|Item 7  | Major Shareholders and Related Party
      Transactions                            | 138  | 
|Item 8  | Financial Information                                                              | 142  | 
|Item 9  | The Offer and Listing                                                              | 142  | 
|Item 10 | Additional Information                                                             | 146  | 
|Item 11 | Quantitative and Qualitative Disclosures
      About Market Risk                   | 177  | 
|Item 12 | Description of Securities other than
      Equity Securities                       | 180  | 
|        |                                                                                    |      | 
|        | Part II                                                                            |      | 
|        |                                                                                    |      | 
|Item 13 | Defaults, Dividend Arrearages and Delinquencies                                    | 181  | 
|Item 14 | Material Modifications to the Rights
      of Security Holders and Use of Proceeds | 181  | 
|Item 15 | Disclosure Controls and Procedures                                                 | 181  | 
|        |                                                                                    |      | 
|        | Part III                                                                           |      | 
|        |                                                                                    |      | 
|Item 17 | Financial Statements                                                               | 182  | 
|Item 18 | Financial Statements                                                               | F-1  | 
|Item 19 | Exhibits                                                                           | E-1  | 
|        |                                                                                    |      | 
|        | Signatures                                                                         | SS-1 | 



3

Presentation of Information

This Annual Report on Form 20-F (referred to herein as the "annual report") has been filed with the United States Securities and Exchange Commission (referred to in this annual report as the "U.S. SEC" or "SEC").

In this annual report, the "Company" refers
  to AXA, a société anonyme organized under the laws of France,
  and "AXA" refers to the Company and its direct and indirect subsidiaries.
  The Company's ordinary shares are referred to in this annual report as "Shares"
  or "ordinary shares". The principal trading market for the Company's
  ordinary shares is the Premier March of the Euronext Paris SA (which resulted
  from the merger of the Paris, Brussels and Amsterdam Stock Exchanges on October
  27, 2000, which we refer to in this annual report as the "ParisBourse").
  The Company's American Depositary Shares and Receipts are referred to in this
  annual report as "ADSs" and "ADRs", respectively. The ADSs
  and ADRs are listed on the New York Stock Exchange (referred to in this annual
  report as "NYSE").

At the annual general meeting of shareholders of AXA held on May 9, 2001, the Company's shareholders approved a 4-for-1 stock split of its outstanding ordinary shares. Immediately following this stock split, which became effective on May 16, 2001, the ratio between the AXA ordinary share and the ADS was changed from one ADS representing one-half of an ordinary share to one ADS representing one ordinary share. Unless otherwise indicated, all information contained in this annual report is on a post-stock split basis and reflects the corresponding ratio change between the ADS and ordinary share.

This annual report includes AXA's consolidated financial
  statements for the years ended December 31, 2002, 2001 and 2000 and as at December
  31, 2002 and 2001. AXA's consolidated financial statements, including the notes
  thereto, are included in "Item 18 - Financial Statements" and have
  been prepared in accordance with accounting principles generally accepted in
  France, which we refer to in this annual report as "French GAAP".
  Unless noted otherwise, the financial information contained in this annual report
  is presented in accordance with French GAAP. French GAAP is based on requirements
  set forth in French law and in European regulations that are described in notes
  1 and 2 to the consolidated financial statements. French GAAP differs significantly
  from accounting principles generally accepted in the United States of America,
  which we refer to in this annual report as "U.S. GAAP". See notes
  33 and 34 to the consolidated financial statements for a description of the
  significant differences between French GAAP and U.S. GAAP, a reconciliation
  of net income and shareholders' equity from French GAAP to U.S. GAAP and additional
  U.S. GAAP disclosures.

Various amounts in this document are shown in millions for presentation purposes. Such amounts have been rounded and, accordingly, may not total. Rounding differences may also exist for percentages.

Exchange Rate Information

France is a member of the European Monetary Union ("EMU"). On January 1, 1999 a single European currency known as the "Euro" was introduced and became the lawful currency of the EMU member states which include: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, The Netherlands, Portugal, Spain and Greece. On such date, the legal rate of conversion between the French franc and the Euro was fixed at FF 6.55957 =1.00 and transactions denominated in Euro started to take place, including new public debt issues. Euro banknotes and coins



4

came into circulation on January 1, 2002. Outstanding obligations denominated in national currencies have been converted at the legal rates established on January 1, 1999 (unless specific contracts provide for an alternative conversion rate). On July 1, 2002, the Central European Bank withdrew the national currencies from circulation, and these currencies are no longer be legal tender for any transactions.

AXA publishes its consolidated financial statements in Euro ("Euro", "euro" or). Unless noted otherwise, all amounts in this annual report are expressed in Euro. The currency of the United States will be referred to as "US dollars" or "US$" or "$". For historical exchange rate information, refer to "Item 3-Key Information-Exchange Rate Information". For a discussion of the impact of foreign currency fluctuations on AXA's financial condition and results of operations, see "Item 5-Operating and Financial Review and Prospects-Market Conditions in 2001".

Special Note Regarding Forward-Looking Statements

This annual report and other publicly available documents may include, and AXA's officers and representatives may from time to time make, statements which may constitute "forward looking statements" within the meaning of the U.S. Securities Litigation Reform Act of 1995. These statements are not historical facts but instead represent AXA's belief regarding future events many of which, by their nature, are inherently uncertain and outside of AXA's control. These statements may address among other things, AXA's financial condition, results of operations and business, including its strategy for growth, product development, regulatory approvals, market position, embedded value and reserves. All statements other than statements of historical facts are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements, including those discussed elsewhere in this annual report and in AXA's other public filings, press releases, oral presentations and discussions. Forward-looking statements include, among other things, discussions concerning the potential exposure of AXA to market risks, as well as statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions.

Forward-looking statements in this annual report are identified by use of the following words and other similar expressions, among others:

| | "anticipate" | "objectives" | 
| | ------------ | ------------ | 
| | "believe"    | "outlook"    | 
| | "could"      | "probably"   | 
| | "estimate"   | "project"    | 
| | "expect"     | "risks"      | 
| | "goals"      | "seek"       | 
| | "intend"     | "should"     | 
| | "may"        | "target"     | 



5

The following factors could affect the future results of operations of AXA and could cause those results to differ materially from those expressed in the forward-looking statements included in this annual report:

| | the intensity of competition
      from other financial institutions;                                                                                                                                                                                                                                                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | AXA's experience with regard
      to mortality and morbidity trends, lapse rates and policy renewal levels
      relating to its life & savings operations, which also include health
      products;                                                                                                                                                                                                                                                                     
| | the frequency, severity
      and development of property & casualty claims including catastrophic
      events whichare uncertain in nature, and policy renewal rates relating to
      AXA's property & casualty business;                                                                                                                                                                                                                                               
| | re-estimates of AXA's reserves
      for future policy benefits and claims;                                                                                                                                                                                                                                                                                                                                                                                                
| | market risks
      related to (a) stock market prices, fluctuations in interest rates, and
      foreign currency exchange rates,(b) adverse
      changes in the economy in AXA's major markets and other adverse developments
      that may affect the value of AXA's investments and/or result in investment
      losses and default losses, (c) the use of derivatives and AXA's ability
      to hedge such exposures effectively, and (d) counterparty credit risk;
|
| | the continuing impact of
      the September 11, 2001 terrorist attacks on the United States, the military
      and other responsive actions and possibility of future terrorist-related
      incidents;                                                                                                                                                                                                                                                                 
| | AXA's ability to develop,
      distribute and administer competitive products and services in a timely,
      cost-effective manner and its ability to develop information technology
      and management information systems to support strategic goals while continuing
      to control costs and expenses;                                                                                                                                                           
| | AXA's visibility in the
      market place, the financial and claims-paying ability ratings of its insurance
      subsidiaries, as well as AXA's ability to access adequate financing to support
      its future business;                                                                                                                                                                                                                                               
| | the effect of changes in
      laws and regulations on AXA's businesses, including changes in tax laws
      affecting insurance (including annuity products) as well as operating income
      and changes in accounting and reporting practices;                                                                                                                                                                                                                         
| | the costs of defending
      litigation, the risk of unanticipated material adverse outcomes in such
      litigation and AXA's exposure to other contingent liabilities;                                                                                                                                                                                                                                                                                                  
| | adverse political developments
      around the world, particularly in the principal markets in which AXA and
      its subsidiaries operate; and                                                                                                                                                                                                                                                                                                                          
| | the performance of others
      on whom AXA relies for distribution, investment management, reinsurance
      and other services; and the effect of any future acquisitions or disposals.                                                                                                                                                                                                                                                                                  

The above factors are in addition to those factors discussed elsewhere in this annual report including matters discussed under "Item 3 - Key Information - Risk Factors"; "Item 4 - Information on the Company"; "Item 5 -Operating and Financial Review and Prospects"; and "Item 11 - Quantitative and Qualitative Disclosures About Market Risk".

You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as at the date of the particular statement. AXA undertakes no obligation to (and expressly disclaims any such obligations to) update publicly or revise any forward-looking statement as a result of new information, future events or otherwise. In light of these risks, AXA's results could differ materially from the forward-looking statements contained in this annual report.



6

Part I

Item 1: Identity of Directors, Senior Management
  and Advisors

Not applicable

Item 2: Offer Statistics and Expected Timetable

Not applicable

Item 3: Key Information

SELECTED CONSOLIDATED FINANCIAL DATA

The selected historical consolidated financial data presented below have been derived from AXA's consolidated financial statements and related notes for the years ended December 31, 2002, 2001, 2000, 1999 and 1998. The historical data set out below is only a summary. You should read it in conjunction with the consolidated financial statements and related notes for the years ended December 31, 2002, 2001 and 2000 and as at December 31, 2002 and 2001 included elsewhere in this annual report.

AXA's consolidated financial statements have been prepared
  in accordance with French GAAP. At January 1, 2001, new French Regulations became
  effective in respect of consolidated financial statements prepared by French
  insurance companies and groups (Regulation No. 2000-05 of the"Comité
  de la Réglementation Comptable").
  Most of the accounting policies set forth in the new French Regulations were
  already in effect at AXA and, therefore, the adoption had limited impact to
  the consolidated operating results and financial position of AXA. The after-tax
  cumulative effect of the changes in French accounting principles was a charge
  of593 million
  against consolidated shareholders' equity at January 1, 2001, or a decrease
  of 2%. In addition, the new French Regulations prescribed certain presentational
  changes. Consequently, certain financial data under French GAAP presented in
  the tables below as at and for the years ended December 31, 2000 and 1999 have
  been restated unless otherwise indicated.

The French GAAP accounting policies arising from the
  adoption of the new French Regulations are described in notes 1 and 2 to the
  consolidated financial statements included elsewhere in this annual report.

French GAAP differs in certain material respects from
  U.S. GAAP. For a description of the material differences between French GAAP
  and U.S. GAAP relevant to AXA, please see "Item 5-Operating and Financial
  Review and Prospects - Other Matters - Reconciliation of French GAAP to U.S.
  GAAP" and notes 33 and 34 to the consolidated financial statements.

As indicated in note 33, the U.S. GAAP adjustments as of and for the year ended
  December 31, 2001 have been restated for the accounting for other-than-temporary
  declines in value for securities, which reduced AXA's 2001 U.S. GAAP consolidated
  net income by  1,128 million to  356 million. This adjustment did not change
  AXA's consolidated shareholders' equity.

AXA Insurance Holding in Japan and its subsidiaries
  use a financial year-end of September 30 and are consolidated as at and for
  the year ended September 30 in AXA's consolidated financial statements.



|                                                           |                          |  |         |  |         |  |         |  |         |  |                 | 
|---------------------------------------------------------- | ------------------------ |  | ------- |  | ------- |  | ------- |  | ------- |  | --------------- | 
|(in millions,
      except per ordinary share amounts)     |                          |  |         |  |         |  |         |  |         |  |                 | 
|                                                           |                          |  |         |  |         |  |         |  |         |  |                 | 
|                                                           | Years ended December 31, |  |         | 
|                                                           | 2002                     |  | 2002    |  | 2001    |  | 2000    |  | 1999    |  | 1998            | 
|                                                           | (US $) (f)               |  | ()     |  | ()     |  | ()     |  | ()     |  | ()
        (i) | 
|                                                           |                          |  |         |  |         |  |         |  |         |  |                 | 
|Income Statement
      Data:                               |                          |  |         |  |         |  |         |  |         |  |                 | 
|In accordance
      with French GAAP:                      |                          |  |         |  |         |  |         |  |         |  |                 | 
|Gross premiums
      and financial services revenues       | 78,351                   |  | 74,727  |  | 74,832  |  | 79,971  |  | 66,528  |  | 56,697          | 
|Net investment
      result (a)                            | (9,135)                  |  | (8,713) |  | (1,244) |  | 14,811  |  | 29,268  |  | 14,069          | 
|Total revenues                                             | 68,815                   |  | 65,632  |  | 73,233  |  | 94,342  |  | 95,806  |  | 70,798          | 
|Income before
      income tax expense (h)                 | 2,723                    |  | 2,597   |  | 1,721   |  | 9,176   |  | 4,816   |  | 3,811           | 
|Income tax expense                                         | (447)                    |  | (426)   |  | (45)    |  | (2,773) |  | (1,292) |  | (1,222)         | 
|Minority interests                                         | (386)                    |  | (368)   |  | (385)   |  | (2,124) |  | (858)   |  | (974)           | 
|Equity in income
      (loss) from affiliated entities     | 24                       |  | 23      |  | 17      |  | (23)    |  | (10)    |  | 11              | 
|Net income                                                 | 995                      |  | 949     |  | 520     |  | 3,904   |  | 2,021   |  | 1,531           | 
|Net income per
      ordinary share: (b) (d)               |                          |  |         |  |         |  |         |  |         |  |                 | 
|- basic                                                    | 0.57                     |  | 0.55    |  | 0.30    |  | 2.57    |  | 1.43    |  | 1.13            | 
|- diluted                                                  | 0.57                     |  | 0.55    |  | 0.32    |  | 2.44    |  | 1.35    |  | 1.06            | 
|                                                           |                          |  |         |  |         |  |         |  |         |  |                 | 
|In accordance
      with US GAAP:                          |                          |  |         |  |         |  |         |  |         |  |                 | 
|Gross premiums,
      net of reinsurance (c)               | 40,729                   |  | 38,845  |  | 40,099  |  | 35,538  |  | 29,341  |  | 27,140          | 
|Income from
      continuing operations (before tax) (j)   | (1,179)                  |  | (1,125) |  | 876     |  | 1,478   |  | 970     |  | 1,261           | 
|Income from
      continuing operations                    |                          |  |         |  |         |  |         |  |         |  |                 | 
|(after tax and
      minority interest) (j)                | (2,713)                  |  | (2,588) |  | 356     |  | 951     |  | 864     |  | 618             | 
|Income from
      discontinued operations                  |                          |  |         |  |         |  |         |  |         |  |                 | 
|(net of tax)                                               | -                        |  | -       |  | -       |  | 192     |  | 344     |  | 129             | 
|Gain on sale
      of discontinued operation               |                          |  |         |  |         |  |         |  |         |  |                 | 
|(net of tax)
      (g)                                     | -                        |  | -       |  | -       |  | 2,105   |  | -       |  | -               | 
|Net income (j)                                             | (2,713)                  |  | (2,588) |  | 356     |  | 3,248   |  | 1,209   |  | 748             | 
|Net income per
      ordinary share: (b) (d) (j)           |                          |  |         |  |         |  |         |  |         |  |                 | 
|Basic                                                      |                          |  |         |  |         |  |         |  |         |  |                 | 
|Income
      from continuing operations                    |                          |  |         |  |         |  |         |  |         |  |                 | 
|(after
      tax and minority interest)                    | (1.59)                   |  | (1.52)  |  | 0.21    |  | 0.63    |  | 0.62    |  | 0.47            | 
|Net
      income                                           | (1.59)                   |  | (1.52)  |  | 0.21    |  | 2.16    |  | 0.87    |  | 0.56            | 
|Diluted                                                    |                          |  |         |  |         |  |         |  |         |  |                 | 
|Income
      from continuing operations                    |                          |  |         |  |         |  |         |  |         |  |                 | 
|(after
      tax and minority interest)                    | (1.59)                   |  | (1.52)  |  | 0.21    |  | 0.62    |  | 0.60    |  | 0.44            | 
|Net
      income                                           | (1.59)                   |  | (1.52)  |  | 0.21    |  | 2.10    |  | 0.82    |  | 0.53            | 
|                                                           |                          |  |         |  |         |  |         |  |         |  |                 | 
|Other data
      :                                         |                          |  |         |  |         |  |         |  |         |  |                 | 
|Number of ordinary
      shares outstanding                | -                        |  | 1,762.2 |  | 1,734.2 |  | 1,664.9 |  | 1,425.3 |  | 1,401.2         | 
|Net dividend
      distribution (in currency millions) (e) | 628                      |  | 599     |  | 971     |  | 926     |  | 713     |  | 595             | 
|                                                           |                          |  |         |  |         |  |         |  |         |  |                 | 



|8                                                |                          |  |         |  |         |  |         |  |         |  |                 | 
|------------------------------------------------ | ------------------------ |  | ------- |  | ------- |  | ------- |  | ------- |  | --------------- | 
|(in millions, except per ordinary share amounts) |                          |  |         |  |         |  |         |  |         |  |                 | 
|                                                 |                          |  |         |  |         |  |         |  |         |  |                 | 
|                                                 | Years ended December 31, | 
|                                                 | 2002                     |  | 2002    |  | 2001    |  | 2000    |  | 1999    |  | 1998            | 
|                                                 | (US $) (f)               |  | ()     |  | ()     |  | ()     |  | ()     |  | ()
        (i) | 
|                                                 |                          |  |         |  |         |  |         |  |         |  |                 | 
|Balance Sheet Data:                              |                          |  |         |  |         |  |         |  |         |  |                 | 
|In accordance with French GAAP:                  |                          |  |         |  |         |  |         |  |         |  |                 | 
|Total assets                                     | 466,223                  |  | 444,657 |  | 485,599 |  | 486,513 |  | 517,934 |  | 384,835         | 
|Shareholders' equity                             | 24,861                   |  | 23,711  |  | 24,780  |  | 24,322  |  | 16,358  |  | 13,537          | 
|Shareholders' equity per ordinary share (b) (d)  | 14.1                     |  | 13.5    |  | 14.3    |  | 14.6    |  | 11.5    |  | 9.7             | 
|                                                 |                          |  |         |  |         |  |         |  |         |  |                 | 
|In accordance with US GAAP:                      |                          |  |         |  |         |  |         |  |         |  |                 | 
|Total assets (g)                                 | 472,568                  |  | 450,708 |  | 493,065 |  | 499,161 |  | 428,526 |  | 350,746         | 
|Shareholders' equity                             | 25,014                   |  | 23,857  |  | 29,340  |  | 31,561  |  | 22,672  |  | 20,355          | 
|Shareholders' equity per ordinary share (b) (d)  | 14.4                     |  | 13.8    |  | 17.2    |  | 19.2    |  | 16.1    |  | 14.7            | 
|                                                 |                          |  |         |  |         |  |         |  |         |  |                 | 

|(a) | Includes investment
      income net of investment expenses and interest expense on short-term and
      long-term debt (other than interest expense relating to bank operating expenses
      of AXA's other financial services operations), net realized investment gains
      and losses and net unrealized investment gains and losses on separate account
      (unit-linked) assets and on trading securities, including assets supporting
      the UK "with-profit" business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Under both French GAAP
      and U.S. GAAP (i) the calculation of net income per ordinary share is based
      on the weighted average number of ordinary shares outstanding for each period
      presented and (ii) shareholders' equity per ordinary share is calculated
      based on the actual number of ordinary shares outstanding at each period-end
      presented. The U.S. GAAP calculations deduct ordinary shares held by AXA
      and its subsidiaries (that is, treasury shares) in the calculation of weighted
      average number of ordinary shares outstanding (for net income per ordinary
      share) and ordinary shares outstanding (for shareholders' equity per ordinary
      share). The calculation of basic and diluted net income per ordinary share
      for each of the three years ended December 31, 2002 is presented in note
      24 "Net Income per Ordinary Share" to AXA's consolidated financial
      statements.      
|(c) | Gross premiums received
      from policyholders in respect of life & savings products which are classified
      as "universal life" or "investment contracts", such
      as separate account (unit-linked) products for U.S. GAAP, are recorded as
      revenue under French GAAP. Under U.S. GAAP, such amounts received are recorded
      as deposits, and only the policy-related fees charged to the policyholders
      for cost of insurance, administration, investment management, etc, are recorded
      as revenue.                                                                                                                                                                                                                                                                                                                                                                                                                                     
|(d) | 2000, 1999 and 1998
      financial data were restated to reflect the 4-for-1 stock split of AXA's
      outstanding ordinary shares whereby the ratio between the AXA ordinary share
      and the ADS was changed from one AXA ADS representing one-half of an AXA
      ordinary share to one AXA ADS representing one AXA ordinary share, effective
      on May 16, 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|(e) | An annual dividend generally
      is paid each year in respect of the prior year after the annual ordinary
      general meeting of shareholders (customarily held in May or June) and before
      September of that year. Dividends are presented above in the year to which
      they relate not the year in which they are declared and paid. At the annual
      general meeting of shareholders of AXA held on April 30, 2003, the shareholders
      approved the declaration of a dividend in respect of 2002 of 0.34 per ordinary
      share. Dividends per ordinary share do not include any French avoir fiscal
      which may be receivable from the French Treasury. In general, dividends
      per ordinary share are based on the number of ordinary shares outstanding
      at the end of the year for each year presented.                                                                                                                       
|(f) | The financial data have
      been translated from Euro to U.S. dollars using the Euro Noon Buying Rate
      at December 31, 2002 of 1.00 = $1.0485 (see " - Exchange rate information").
      These translations are solely for the convenience of the reader and should
      not be construed as representations that the converted amounts actually
      represent such U.S. dollar amounts or could have been (at the relevant date)
      converted into U.S. dollars at the rate indicated or at any other rate.                                                                                                                                                                                                                                                                                                                                                                                                                                              
|(g) | As a result
      of the sale of DLJ in 2000 and in accordance with U.S. GAAP accounting treatment
      and presentation of discontinued operations, the income statement data in
      accordance with U.S. GAAP for 2000, 1999 and 1998 have been restated in
      respect of "total revenues" and" net
      income" from continuing operations. In respect of the balance sheet
      data in accordance with U.S. GAAP, "Total assets" data have been
      restated to include net assets of DLJ discontinued operations (which is
      reported as a single line item under total assets). The restated financial
      data for the years ended December 31, 2000 and 1999 were derived from the
      audited consolidated financial statements included elsewhere in this annual
      report. All other restated U.S. GAAP income statement data presented in
      the table below in respect of the discontinued operations have not been
      audited.
|
|(h) | In 2001, "Income
      before income tax expense" excludes the amortization of goodwill, whereas
      in prior periods, it included the amortization of goodwill. Consequently,
      prior periods have been restated accordingly.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|(i) | The 1998 financial statement
      data was not restated for the new presentation requirements set forth in
      the new French Regulations adopted on January 1, 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(j) | Financial data have been restated for the
      accounting for other-than-temporary decline in value for securities. See
      Note 33 to the consolidated financial statements for further information.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                



Exchange rate information

The year-end and average exchange rates used in the preparation of the consolidated financial statements, to translate into Euro the results of operations of its principal subsidiaries and affiliates that are not denominated in euro, are set out in the table below.

|                        |  | YearEnd Exchange Rate |  | Average Exchange Rate | 
|----------------------- |  | --------------------- |  | --------------------- | 
|                        |  | 2002                  |  | 2001                  | 
|                        |  | (euros)               |  | (euros)               | 
|                        |  |                       |  |                       | 
|U.S. Dollar             |  | 0.95                  |  | 1.14                  | 
|Japanese Yen (a) (x100) |  | 0.84                  |  | 0.92                  | 
|British Pound           |  | 1.54                  |  | 1.64                  | 
|                        |  |                       |  |                       | 

|(a) | The exchange rates presented correspond to the year-end exchange rate and average exchange rate for a September 30 financial year.
|--- | ----------------------------------------------------------------------------------------------------------------------------------

INFORMATION ON EURO NOON BUYING RATES

The following table sets forth, for the periods and dates indicated, certain information concerning the Noon Buying Rate of one Euro to U.S. dollars in New York City for cable transfers as certified for customs purposes by the Federal Reserve Bank of New York, which we refer to in this annual report as the "Euro Noon Buying Rate". The Euro Noon Buying Rates presented below are for your convenience and are not used by AXA to prepare AXA's consolidated financial statements included elsewhere in this annual report.

|                              |  |                      | 
|----------------------------- |  | -------------------- | 
|                              |  | U.S. dollar per euro | 
|Calendar period               |  | Average rate (a)     | 
|                              |  |                      | 
|1998 (b)                      |  | 1.1113               | 
|1999                          |  | 1.0666               | 
|2000                          |  | 0.9207               | 
|2001                          |  | 0.8909               | 
|2002                          |  | 0.9495               | 
|2003 (through April 30, 2003) |  | 1.0900               | 
|                              |  |                      | 

|(a) | The average of the Noon Buying Rates on the last business day of each full month during the relevant period.                                                                                                                                            
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Effective January 1, 1999, the French Franc became a component of the Euro. As such, the Euro Noon Buying Rates for the years prior to 1999 are the Noon Buying Rates for the French Franc converted into Euro at a rate of1.00 = French Franc 6.55957.

The table below sets forth the high and low Euro Noon Buying Rates for the most recent six months through to April 2003.

|                           |        |  |        | 
|-------------------------- | ------ |  | ------ | 
|U.S. dollar per
      euro |        |  |        | 
|Month                      | High   |  | Low    | 
|                           |        |  |        | 
|November 2002              | 1.0139 |  | 0.9895 | 
|December 2002              | 1.0485 |  | 0.9927 | 
|January 2003               | 1.0861 |  | 1.0361 | 
|February 2003              | 1.0875 |  | 1.0708 | 
|March 2003                 | 1.1062 |  | 1.0545 | 
|April 2003                 | 1.1180 |  | 1.0621 | 
|                           |        |  |        | 

The Euro Noon Buying Rate on December 31, 2002 was1.00 = US$ 1.0485.



10

DIVIDENDS

AXA pays dividends in Euro. Future dividends will depend
  on AXA's earnings, financial condition and other factors. Proposals for dividend
  payments are made by the Management Board, subject to prior approval by the
  Supervisory Board and final approval by AXA's shareholders at the ordinary annual
  general meeting of shareholders. Dividends paid to holders of ordinary shares
  and ADSs will generally be subject to French withholding tax at a rate of 25%
  which, subject to certain procedures and exceptions, may be reduced to 15% for
  holders who are residents of the United States. Certain holders of ordinary
  shares and ADSs may be entitled to receive a subsequent payment equal to the
  French avoir fiscal (or tax credit) in an amount equal to 50% of any dividends
  paid by the Company, less applicable French withholding tax. See "Item
  10-Additional Information-Taxation of Dividends Avoir Fiscal" for a summary
  of certain United States federal and French tax consequence to holders of ordinary
  shares and ADSs. The following table sets forth the total dividends paid per
  ordinary share with respect to each year indicated, with or without the French
  avoir fiscal, and before deduction of any French withholding tax. Dividends
  paid in each year are in respect of the prior year's results.

|             |  |              |  |                | 
|------------ |  | ------------ |  | -------------- | 
|Year         |  | Net dividend |  | Gross dividend | 
|             |  | per ordinary |  | per ordinary   | 
|             |  | share        |  | share (a)      | 
|             |  | (euros)      |  | (euros)        | 
|             |  |              |  |                | 
|1998 (b)     |  | 0.43         |  | 0.64           | 
|1999 (b)     |  | 0.50         |  | 0.75           | 
|2000 (b) (c) |  | 0.55         |  | 0.83           | 
|2001 (c)     |  | 0.56         |  | 0.84           | 
|2002 (d)     |  | 0.34         |  | 0.51           | 
|             |  |              |  |                | 

|(a) | Payment equivalent to the French avoir fiscal or tax credit, less applicable French withholding tax, will be made only following receipt of a claim for such payment, and, in any event, not until after the close of the calendar year in which the respective dividends are paid. Certain US tax exempt holders of ordinary shares or ADSs will not be entitled to full payments of avoir fiscal. (see "Item 10-Additional Information - Taxation").
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Restated to take account of the 4-for-1 stock split approved by the shareholders at the annual general meeting of shareholders held on May 9, 2001.                                                                                                                                                                                                                                                                                                   
|(c) | In 2000, dividends per ordinary share were based on the number of AXA ordinary shares outstanding at December 31, 2000 and also included the 4.9 million ordinary shares issued to the remaining minority interests in AXA Financial, Inc. following the completion of the merger of AXA Merger Corp. with and into AXA Financial, Inc. on January 2, 2001.                                                                                           
|(d) | At the annual general meeting of shareholders of AXA held on April 30, 2003, the shareholders approved the declaration of a dividend in respect of 2002 of0.34 per ordinary share, or599 million in the aggregate based on the number of AXA ordinary shares outstanding at December 31, 2002.                                                                                                                                                      

Given the change in the ratio of one AXA ordinary share to one AXA ADS in 2001 (in connection with the shareholders approval of the 4-for-1 stock split at the annual general meeting held on May 9, 2001), dividend per ADS information is no longer provided.

For information on AXA's dividend policy, see "Item 8 - Financial Information" and "Item 10 - Additional Information - Dividends".



11

Risk Factors

RISKS RELATING TO VOLATILITY OF OR DETERIORATION IN FINANCIAL
  MARKETS

A DECLINE OR INCREASED VOLATILITY IN THE SECURITIES MARKETS, AND OTHER ECONOMIC FACTORS, MAY ADVERSELY AFFECT OUR BUSINESS, IN PARTICULAR, CERTAIN OF OUR INSURANCE PRODUCTS, MUTUAL FUNDS AND ASSET MANAGEMENT BUSINESSES, AND MAY ALSO ADVERSELY AFFECT OUR INVESTMENT RETURNS AND PROFITABILITY

Fluctuations in the securities markets and other economic
  factors may adversely affect sales of our participating life insurance and pension
  products, mutual funds, asset management services and separate account (unit
  linked) products, including variable annuity products and variable life products.
  In particular, protracted or steep declines in the stock or bond markets typically
  reduce the popularity of these products. For example, in the U.S. Life &
  Savings operations, the decline in U.S. equity markets since 2000 has resulted
  in a significantly lower percentage of annuity premium invested in equity linked
  separate account options in 2002 of 54% (2001: 59% and 2000: 71%) and a significant
  decline in sales of variable life insurance and variable annuities from approximately9,355 million
  in 2000 to approximately8,881
  million in 2002.

The level of volatility in the financial markets in
  which we invest and the overall investment returns earned in those markets substantially
  affect our profitability. Our investment returns, and thus our profitability,
  may be adversely affected from time to time by conditions affecting our specific
  investments and, more generally, by stock market, real estate market and other
  market fluctuations and general economic, market and political conditions. Our
  ability to make a profit on insurance products and investment products, including
  fixed and guaranteed products, depends in part on the returns on investments
  supporting our obligations under these products and the value of specific investments
  may fluctuate substantially depending on the foregoing conditions. Certain types
  of insurance, reinsurance and investment products that we offer may expose us,
  in particular, to risks associated with fluctuations in financial markets, including
  interest sensitive or variable products such as guaranteed annuities or variable
  annuities which have crediting or other guaranteed rates or minimum benefits
  not necessarily related to prevailing market interest rates or investment returns
  on underlying assets. During the latter half of the 1990s, our assets, earnings
  and ability to generate new sales increased due to significant growth in retirement
  savings-related products and very strong stock market appreciation, coupled
  with solid bond market appreciation spurred by declining interest rates. The
  current negative economic trends and adverse investment climates in our major
  markets adversely affected our businesses and profitability in 2002, and can
  be expected to continue to do so unless conditions improve.

In addition, the growth of our asset management business depends to a significant extent on factors such as investment returns and risk management. We will not be able to accumulate and retain assets under management if our investment results underperform the market or the competition. Such underperformance would likely result in asset withdrawals and reduced sales. In addition, poor performance in the financial markets, in general, may adversely impact the value of the assets we manage, our ability to accumulate and retain those assets, as well as the revenues and profits that we earn from management of those assets. For example at December 31, 2002, our total assets under management declined to742 billion as compared to910 billion at December 31, 2001. This decrease can be attributed to a number of factors including turbulent financial markets during 2002, which resulted in client withdrawals of assets under management, poor overall performance of equity markets during 2002, which resulted in a decline in the value of certain assets under management, and the strengthening of the Euro against most other major currencies, particularly the US Dollar.



12

LOSSES DUE TO DEFAULTS BY OTHERS AND IMPAIRMENT OF
  OUR INVESTMENT ASSETS COULD NEGATIVELY AFFECT THE VALUE OF OUR INVESTMENTS AND
  REDUCE OUR PROFITABILITY Third parties that owe us money, securities or other assets
  may not pay or perform under their obligations. These parties include the issuers
  whose securities we hold in our investment portfolios, borrowers under the mortgage
  loans we make, customers, trading counterparties, counterparties under swap
  and other derivative contracts, clearing agents, exchanges, clearing houses
  and other financial intermediaries. These parties may default on their obligations
  to us due to bankruptcy, lack of liquidity, downturns in the economy or real
  estate values, operational failure or other reasons. The current negative trends
  and investment climates in our major markets have resulted in an increase in
  investment impairments on our investment assets due to defaults, credit downgrades
  and overall declines in securities markets. A further downturn could result
  in increased impairments and we may realize additional losses in respect of
  our investment portfolios in the future.

The default of a major market participant could disrupt the securities markets or clearance and settlement systems in our major markets, which could in turn cause market declines or volatility. A failure of a major market participant could also cause some clearance and settlement systems to assess members of that system or could lead to a chain of defaults that could adversely affect us.

INTEREST RATE VOLATILITY MAY ADVERSELY AFFECT OUR
  PROFITABILITY During periods of declining interest rates,
  life insurance and annuity products may be relatively more attractive to consumers,
  resulting in increased premium payments on products with flexible premium features,
  and a higher percentage of insurance policies remaining in force from year to
  year. During such a period, our investment earnings may be lower because the
  interest earnings on our fixed income investments likely will have declined
  in parallel with market interest rates. In addition, mortgages and fixed maturities
  in our investment portfolios will be more likely to be prepaid or redeemed as
  borrowers seek to borrow at lower interest rates. Consequently, we may be required
  to reinvest the proceeds in securities bearing lower interest rates. Accordingly,
  during periods of declining interest rates, our profitability may suffer as
  the result of a decrease in the spread between interest rates credited to policyholders
  and returns on our investment portfolio.

Conversely, in periods of increasing interest rates, surrenders of life insurance policies and fixed annuity contracts may increase as policyholders choose to forego insurance protection and seek higher investment returns. Obtaining cash to satisfy these obligations may require us to liquidate fixed maturity investments at a time when the market prices for those assets are depressed because interest rates have increased. This may result in realized investment losses. Regardless of whether we realize an investment loss, these cash payments would result in a decrease in total invested assets, and may decrease our net income. Premature withdrawals may also cause us to accelerate amortization of policy acquisition costs, which would also reduce our net income.

The profitability of our spread-based businesses depends in large part upon our ability to manage interest rate spreads, and the credit and other risks inherent in our investment portfolio. We cannot guarantee, however, that we will successfully manage our interest rate spreads or the potential negative impact of those risks.

FLUCTUATIONS IN CURRENCY EXCHANGE RATES MAY AFFECT
  OUR EARNINGS Translation fluctuations:AXA
  publishes its consolidated financial statements in Euro. For the year ended
  December 31, 2002, approximately 53% of AXA's gross premiums and financial services
  revenues and 41% of AXA's benefits, claims and other deductions were denominated
  in currencies other than the Euro, primarily U.S. dollars, Pounds



13

sterling, Japanese Yen and Australian dollars (2001: 53% and 45%, respectively). Consequently, fluctuations in the exchange rates used to translate these currencies into Euro may have a significant impact on AXA's reported results of operations from year to year.

Transaction-based fluctuations:AXA's
  obligations are denominated either in Euro or other currencies, the value of
  which is subject to foreign currency exchange rate fluctuations. AXA's interest
  obligations on its outstanding debt, however, are generally matched to cash
  dividends to be received by AXA in the same currencies. Approximately387
  million of the cash dividends received by the Company in 2002 were paid in currencies
  other than the Euro (2001: 410
  million). In 2002, approximately173
  million and533
  million of interest payments in currencies other than the Euro were made by
  the Company and AXA Group, respectively (2001:238
  million and692
  million, respectively).

RISKS RELATING TO THE NATURE OF OUR BUSINESS
  AND THE ENVIRONMENT IN WHICH WE OPERATE

IF OUR ESTABLISHED RESERVES ARE INSUFFICIENT OUR
  EARNINGS WILL BE ADVERSELY AFFECTED In accordance with industry practice and accounting
  and regulatory requirements, we establish reserves for claims and claims expenses
  related to our property & casualty and international insurance businesses.
  These reserves are not discounted unless final settlement has been agreed and
  the payments are generally fixed over a period of time. Reserves do not represent
  an exact calculation of liability, but instead represent estimates, generally
  using actuarial projection techniques at a given accounting date. These reserve
  estimates are expectations of what the ultimate settlement and administration
  of claims will cost based on our assessment of facts and circumstances then
  known, review of historical settlement patterns, estimates of trends in claims
  severity, frequency, legal theories of liability and other factors. The process
  of estimating the insurance claims reserves is based on information available
  at the time the reserves are originally established. However, claims reserves
  are subject to change due to the number of variables which affect the ultimate
  cost of claims, such as:

- development in claims (frequency, severity and pattern of claims) between the amount estimated and actual experience;
- changes arising due to the time lag between the occurrence
    of the insured event, notification of the claim (from the insured party, a
    third party or a ceding company) and the final settlement (payment) of the
    claim, primarily attributable to long tail casualty claims that may take several
    years to settle due to the size and nature of the claim, and the occurrence
    of large natural catastrophes late in the financial year for which limited
    information may be available at year end;
- judicial trends;
- regulatory changes; and
- inflation and foreign currency fluctuations.

Many of these items are not directly quantifiable, particularly on a prospective basis. As a result, actual losses may deviate from the original gross reserves established. Consequently, the reserve may be re-estimated reflecting those changes resulting in loss reserve redundancies (in cases where the original gross claims reserve was overstated) or deficiencies (in cases where the original gross claims reserve was understated). Adjustments to reserves are reflected in the results of the periods in which the estimates are changed.  In addition, certain of our property & casualty operations are required by local regulations in the countries in which they operate to establish catastrophe risk equalization reserves characterized by high costs and low frequency.



14

We continually review the adequacy of the established claims reserves, including emerging claims development, and actual claims compared to the original assumptions used to estimate initial gross claims reserves. Based on current information available, we believe that our claims reserves are sufficient. However, because the establishment of claims reserves is an inherently uncertain process involving estimates, we cannot assure you that ultimate losses will not materially exceed our claims reserves and have a material adverse effect on our earnings.

As with other property & casualty insurers and reinsurers, our operating results and financial condition can be adversely affected by volatile and unpredictable natural and man-made disasters, such as hurricanes, windstorms, earthquakes, fires and explosions. We generally seek to reduce our exposure to these events through individual risk selection and the purchase of reinsurance. We have experienced in the past, and could experience in the future, material losses from such catastrophic events. In addition, there is a high degree of uncertainty with respect to future exposure from asbestos claims because of significant issues surrounding the liabilities of insurers, diverging legal interpretations and judgements in different jurisdictions and more aggressive asbestos related litigation, particularly in the U.S. These uncertainties include the extent of coverage under insurance policies, whether or not particular claims are subject to an aggregate limit, the number of occurrences involved in particular claims and new theories of insured and insurer liability. We have established reserves for insurance and reinsurance contracts related to environmental pollution and asbestos (i) of350 million (349 million for 2001) for reported claims and (ii)559 million (577 million for 2001) of additional reserves for incurred but not reported claims. These reserves represent our best estimate of ultimate claims exposure at December 31, 2002 based on known facts and current law; however, given uncertainties surrounding asbestos related claims, we cannot assure you that ultimate losses will not materially exceed our claims reserves and have a material adverse effect on our earnings. For additional information, see "Environmental Pollution, Asbestos and other Exposures" in note 15 to AXA's consolidated financial statements included in Item 18 of this annual report.

In our life & savings businesses our earnings also
  depend significantly upon the extent to which our actual claims experience is
  consistent with the assumptions we use in setting the prices for our products
  and establishing the liabilities for obligations for technical provisions and
  claims. To the extent that our actual claims experience is less favorable than
  the underlying assumptions used in establishing such liabilities, we may be
  required to increase our liabilities, which may reduce our net income. For example,
  certain variable annuity products issued or reinsured by certain of our subsidiaries
  contain guaranteed minimum death benefit ("GMDB") and guaranteed minimum
  income benefit ("GMIB") features. The determination of GMDB and GMIB
  liabilities 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. Determination
  of liabilities for our other lines of life & savings business, such as our
  annuity business, as well as our disability income business, also involve numerous
  assumptions and subjective judgments as to mortality and morbidity experience,
  investment returns, expenses, policy surrender rates, policy lapse rates, and
  other matters. There can be no assurance that ultimate actual experience on
  these products will not differ, upwards or downwards, from management's estimates.
  In addition, certain acquisition costs related to the sale of new policies and
  the purchase of policies already in force have been recorded as assets on balance
  sheet and are being amortized into income over time. If the assumptions relating
  to the future profitability of these policies (such as future claims, investment
  income and expenses) are not realized, the amortization of these costs could
  be accelerated and may even require write-offs due to unrecoverability. These
  factors could have a material adverse effect on our business, results of operations
  and financial condition.



15

A DOWNGRADE IN THE CLAIMS PAYING AND FINANCIAL STRENGTH
  RATINGS OF THE AXA GROUP COULD ADVERSELY IMPACT OUR BUSINESS AND RESULTS OF
  OPERATIONS Claims paying and financial strength ratings have become
  an increasingly important factor in establishing the competitive position of
  insurance companies. The ratings held by AXA and its principal insurance subsidiaries
  are set forth in Item 4 - Ratings of this annual report. Rating agencies review
  their ratings periodically and our current ratings may not be maintained in
  the future. In January 2003, Standard & Poors downgraded the insurer financial
  strength and counter party credit ratings of the core operating companies of
  the AXA Group from AA with negative implications to AA- with a stable outlook.
  A downgrade in these ratings could adversely affect our business and results
  of operations including through a reduction in the number of new insurance policies
  that we write and/or an increase in surrender or termination of policies already
  in-force.

REINSURANCE MAY NOT BE ADEQUATE TO PROTECT US AGAINST
  LOSSES AND WE MAY INCUR LOSSES DUE TO THE INABILITY OF OUR REINSURERS TO MEET
  THEIR OBLIGATIONS In the normal course of business, AXA seeks
  to reduce the loss that may arise from catastrophes or other events that cause
  unfavorable underwriting results through reinsurance. Under the reinsurance
  arrangements, other insurers assume a portion of the losses and related expenses;
  however, we remain liable as the direct insurer on all risks reinsured. Consequently,
  ceded reinsurance arrangements do not eliminate our obligation to pay claims.
  In addition, we are subject to credit risk with respect to our ability to recover
  amounts due from reinsurers. Although we evaluate periodically the financial
  condition of our reinsurers to minimize our exposure to significant losses from
  reinsurer insolvencies, our reinsurers may become financially unsound by the
  time their financial obligation becomes due. The inability of any reinsurer
  to meet its financial obligations to us could impact our financial results.
  In addition, the availability, amount and cost of reinsurance depends on general
  market conditions and may vary significantly. Reinsurance may not be available
  to us in the future at commercially reasonable rates and any decrease in the
  amount of our reinsurance will increase our risk of loss.

ELIMINATION OF TAX BENEFITS FOR OUR PRODUCTS AND
  OTHER CHANGES IN LAWS AND REGULATIONS MAY ADVERSELY AFFECT SALES OF OUR INSURANCE
  AND INVESTMENT ADVISORY PRODUCTS Changes to tax laws may affect the attractiveness
  of certain of our products, which currently have favorable tax treatment. For
  example, an unfavorable change in the tax treatment of life insurance products
  in France in 1998 had an adverse impact on the market for these products. From
  time to time, governments in the jurisdictions in which we do business, including
  the United States government, have considered proposals for tax law changes
  that could adversely affect our products. These proposals have included, for
  example, proposals to tax the undistributed increase in value of life insurance
  policies. The enactment of any such tax legislation would likely result in a
  significant reduction in sales of our currently tax-favored products.

We are subject to detailed and comprehensive regulation and supervision in all the jurisdictions in which we transact business. Our insurance operations are subject to insurance laws and regulations, which are generally intended to protect policyholders, not our shareholders. Changes in existing insurance laws and regulations may materially affect the way in which we conduct our business and the products we may offer. In addition, changes in pension and employee benefit regulation, social security regulation, financial services regulation, taxation and the regulation of securities products and transactions may also adversely affect our ability to sell new policies or our claims exposure on existing policies. For example, in 2000, the U.K. government adopted new legislation relating to employee pension



16

schemes, which became effective in April 2001. The new legislation imposed a limit on the fee that insurance companies are allowed to charge for administering Stakeholders' Pensions, the simplified individual pensions promoted by the new legislation. As a result of this legislative change, insurers in the UK life insurance market have experienced increased pricing and competitive pressure with respect to these types of products.

Our asset management operations are also subject to extensive regulation in the various jurisdictions where they operate. These regulations are primarily intended to protect investors in the securities markets or investment advisory clients and generally grant supervisory authorities broad administrative powers. Changes to these laws and regulations may adversely affect our asset management operations For a discussion regulations which affect our business, please see item 4 "Information on the Company - Additional Factors which may affect AXA's Business".

WE FACE INCREASED COMPETITION IN ALL OF OUR BUSINESS
  LINES INCLUDING AS A RESULT OF CONTINUING CONSOLIDATION IN THE GLOBAL FINANCIAL
  SERVICES INDUSTRY We face strong and increasing competition in all our business
  lines. Our competitors include mutual funds companies, asset management firms,
  commercial banks and other insurance companies, many of which are regulated
  differently than we are and offer alternative products or more competitive pricing
  than we do. The recent consolidation in the global financial services industry
  has also enhanced the competitive position of some of our competitors by broadening
  the range of their products and services, and increasing their distribution
  channels and their access to capital. In addition, development of alternative
  distribution channels for certain types of insurance and securities products,
  including through the internet, may result in increasing competition as well
  as pressure on margins for certain types of products. These competitive pressures
  could result in increased pricing pressures on a number of our products and
  services, particularly as competitors seek to win market share, and may harm
  our ability to maintain or increase our profitability.

THE TERRORIST ATTACKS ON THE UNITED STATES AND ENSUING
  EVENTS MAY HAVE A CONTINUING NEGATIVE IMPACT ON CERTAIN OF OUR BUSINESSES Our losses arising from insurance claims in
  connection with the terrorist attacks on September 11, 2001 had a negative effect
  on our net income. The estimated cost for AXA for the year ended December 31,
  2002, based on information available at such date, amounted to903
  million (before tax and net of reinsurance), or604
  million net of tax and reinsurance. These estimates are based on the best information
  available to management; however, they may be affected by a number of factors
  including, for example, possible bankruptcies of reinsurers who provide coverage
  to us or an adverse outcome of the litigation currently pending in New York
  as to whether the terrorist attack on the World Trade Center constituted a single
  insurable incident or two separate incidents. Consequently, there can be no
  assurance that AXA's ultimate exposure will not be greater than these estimates,
  particularly in the event of an adverse determination in the pending World Trade
  Center litigation referred to above.

We cannot assess with any degree of certainty the future effects on our businesses of the terrorist attacks, the ensuing U.S. military and other responsive actions, including the recent war in Iraq, and the possibility of further terrorist attacks in the future. The terrorist attacks and responsive actions have significantly adversely affected general economic, financial market and political conditions, increasing many of the risks in our businesses noted in the previous risk factors. This may have a negative effect on our businesses and results of operations over time.

Our general account investment portfolios, and particularly those of our U.S. subsidiaries, include investments in industries that we believe may be adversely affected by the terrorist attacks and responsive actions, including airlines, lodging and entertainment companies and non-life insurance companies. The effect of these events on the valuation of these investments is uncertain and could lead to increased impairments. The cost, and possibly the availability, in



17

the future of reinsurance covering terrorist attacks for our various insurance operations is uncertain. In addition, the rating agencies could reexamine the ratings affecting the insurance industry generally, including our companies.

AS A GLOBAL BUSINESS, WE ARE EXPOSED TO DIFFERENT
  LOCAL POLITICAL, REGULATORY AND BUSINESS RISKS AND CHALLENGES WHICH MAY AFFECT
  THE DEMAND FOR OUR PRODUCTS AND SERVICES, THE VALUE OF OUR INVESTMENTS PORTFOLIO
  AND THE CREDIT QUALITY OF LOCAL COUNTERPARTIES We offer our products and services in Europe,
  North and South America, the Asia/Pacific zone, the Middle East and Africa through
  wholly-owned and majority-owned subsidiaries, joint ventures, companies in which
  we hold a non-controlling equity stake, agents and independent contractors.
  Our international operations expose us to different local political, regulatory,
  business and financial risks and challenges which may affect the demand for
  our products and services, the value of our investment portfolio, the required
  levels of our capital and surplus, and the credit quality of local counterparties.
  These risks include, for example, political, social or economic instability
  in countries in which we operate, fluctuations in foreign currency exchange
  rates, credit risks of our local borrowers and counterparties, lack of local
  business experience in certain markets, risks associated with the exposure to
  insurance industry insolvencies through policyholder guarantee funds or similar
  mechanisms set up in foreign markets and, in certain cases, risks associated
  with the potential incompatibility with foreign partners, especially in countries
  in which we are conducting business through entities we do not control.

Our expansion in emerging markets requires us to respond to rapid changes in market conditions in these countries. Our overall success as a global business depends, in part, upon our ability to succeed in differing economic, social and political conditions. We may not continue to succeed in developing and implementing policies and strategies that are effective in each location where we do business.

INADAQUATE OR FAILED PROCESSES OR SYSTEMS, HUMAN FACTORS OR EXTERNAL EVENTS MAY ADVERSELY AFFECT OUR PROFITABILITY, REPUTATION OR OPERATIONAL EFFECTIVENESS

Operational risk is inherent in our business and can manifest itself in various ways including business interruption, poor vendor performance, information systems malfunctions or failures, regulatory breaches, human errors, employee misconduct, and/or external fraud. These events can potentially result in financial loss, harm to our reputation and/or hinder our operational effectiveness.  Management attempts to control these risks and keep operational risk at appropriate levels by maintaining a sound and well controlled environment in light of the characteristics of our business, the markets and regulatory environment in which we operate. Notwithstanding these control measures, operation risk is part of the business environment in which we operate and we may incur losses from time to time due to these types or risks.

OTHER RISKS RELATING TO OUR OPERATIONS

AS A HOLDING COMPANY, WE ARE DEPENDENT UPON OUR SUBSIDIARIES
  TO COVER OUR OPERATING EXPENSES AND DIVIDEND PAYMENTS Our insurance and financial services operations
  are generally conducted through direct and indirect subsidiaries. As a holding
  company, our principal sources of funds are dividends from subsidiaries and
  funds that may be raised from



18

time to time through the issuance of debt or equity
  securities or through bank or other borrowings. As of December 31, 2002, the
  Company had amounts owed to credit institutions of254
  million, outstanding subordinated debt instruments issued of7,486
  million and outstanding non-subordinated debt instruments issued of1,392
  million (2001:145
  million,7,875
  million and2,084
  million, respectively).

At December 31, 2002 and on a consolidated basis, AXA
  had amounts owed to credit institutions of5,017
  million, outstanding subordinated debt instruments issued of8,300
  million, and outstanding non-subordinated debt instruments issued of4,682
  million (2001:6,608
  million,8,868
  million and5,957
  million).

We expect that dividends received from subsidiaries
  will continue to cover our operating expenses, including (i) interest payments
  on our outstanding financing, operating and subordinated debt and (ii) dividend
  payments with respect to our outstanding ordinary shares during each of the
  next three years. We expect that future acquisitions and strategic investments
  will be funded from available cash flow remaining after payment of dividends
  and operating expenses (including interest expense), cash on hand from previous
  securities offerings, proceeds of future offerings of securities, and proceeds
  from the sale of non-core assets. Certain of our significant subsidiaries, including
  AXA France Assurances, AXA Financial, AXA UK Holdings, AXA Japan, AXA Asia Pacific
  Holdings, and AXA Germany, are also holding companies and are dependent on dividends
  from their own subsidiaries for funds to meet their obligations. In addition,
  certain of our principal insurance subsidiaries are subject to restrictions
  on the amount of dividends and debt repayments that can be paid to us and our
  affiliates. While we do not believe that these restrictions currently constitute
  a material limitation on our ability to meet our obligations or pay dividends
  on our shares, these restrictions may constitute a material limitation in the
  future.

OUR FRENCH GAAP RESULTS MAY DIFFER SIGNIFICANTLY
  FROM OUR U.S. GAAP RESULTS The Company's primary financial statements are in French
  GAAP. For purposes of its listing on the NYSE, the Company reconciles its French
  GAAP annual financial results to U.S. GAAP each year. There are significant
  differences between French GAAP and U.S. GAAP which lead to different results
  under the two systems of accounting. Differences in the Company's French GAAP
  and U.S. GAAP results have become larger with the increase in financial market
  volatility over the past year. Currently, the most significant differences between
  the Company's French GAAP results and U.S. GAAP results arise due to differing
  rules with respect to impairments for "other-than-temporary" declines
  in the value of securities, valuation of deferred tax assets, valuation of holdings
  in mutual funds and the accounting for derivatives instruments and hedging activities.
  While we cannot predict with any certainty the extent to which the Company's
  French GAAP and U.S. GAAP results will differ in future years, we believe that
  differences are likely to continue given the different accounting principles
  that apply under the two systems.

OUR TRANSITION TO INTERNATIONAL ACCOUNTING STANDARDS
  MAY AFFECT OUR OPERATING RESULTS The basis on which we prepare our financial statements
  and report our operating results will be changed given that in June 2002, the
  Council of the European Union ("EU") adopted a regulation requiring
  listed companies in its Member States to prepare consolidated financial statements
  in accordance with International Financial Reporting Standards ("IFRS"),
  previously known as International Accounting Standards or ("IAS").
  This new regulation will take effect on January 1, 2005. The impact of adopting
  IFRS is difficult to predict with any certainty at this time especially given
  that the International Accounting Standards Board ("IASB") has not
  yet finalized certain regulations including those with respect to accounting
  for financial instruments and accounting for certain types of insurance written
  by insurance companies; however, the adoption of IFRS may have a significant
  adverse impact on our level of reported earnings.



19

OUR ACQUISITIONS MAY DIVERT MANAGEMENT ATTENTION
  AND OTHER RESOURCES AND INVOLVE RISK OF UNDISCLOSED LIABILITIES In recent years we have completed a number
  of acquisitions around the world and we may make further acquisitions in the
  future. Growth by acquisition involves risks that could adversely affect our
  operating results, including the substantial amount of management time that
  may be diverted from operations to pursue and complete acquisitions, difficulties
  in managing and integrating the additional operations and personnel of acquired
  companies, significant delays in completing the integration of acquired companies
  and the potential loss of key employees or customers of these companies. Our
  acquisitions could result in the incurrence of additional indebtedness, costs,
  contingent liabilities and amortization expenses related to goodwill and other
  intangible assets, all of which could materially adversely affect our businesses,
  financial condition and results of operations. Future acquisitions may also
  have a dilutive effect on the ownership and voting percentages of existing shareholders.

The businesses we have acquired include life & savings, property & casualty insurance, asset management and retail banking operations. There could be unforeseen liabilities that arise out of the businesses we have acquired and may acquire in the future which may not be covered by, or exceed the amount of, the indemnification obligations of sellers.

WE HAVE RETAINED CONTINGENT LIABILITIES FROM DISCONTINUED,
  DIVESTED AND RUN-OFF BUSINESSES AND HAVE INCURRED OTHER OFF-BALANCE SHEET LIABILITIES
  THAT MAY RESULT IN INCOME STATEMENT CHARGES We have retained insurance or reinsurance
  obligations and other contingent liabilities in connection with our divestiture,
  liquidation or run-off of various businesses, and our reserves for these obligations
  and liabilities may prove to be inadequate. The costs and liabilities associated
  with our divested and run-off businesses and other contingent liabilities could
  cause us to take additional charges that could be material to our results of
  operations.

We also from time to time in the course of our business give guaranties and enter into derivative and other types of off-balance sheet transactions that could result in income statement charges. For additional information, see note 26, "Off Balance Sheet Commitments", to AXA's consolidated financial statements included in Item 18 of this annual report.

LITIGATION AND REGULATORY INVESTIGATIONS MAY ADVERSELY
  AFFECT OUR BUSINESS, RESULTS OF OPERATIONS AND FINANCIAL CONDITION
  We face significant risks of litigation and regulatory
  investigations and actions in connection with our activities as an insurer,
  securities issuer, employer, investment advisor, investor and taxpayer. Lawsuits,
  including class actions and regulatory actions, may be difficult to assess or
  quantify, may seek recovery of very large and/or indeterminate amounts, including
  punitive and treble damages, and their existence and magnitude may remain unknown
  for substantial periods of time. A substantial legal liability or a significant
  regulatory action could have a material adverse effect on our business, results
  of operations and financial condition. For a discussion of current regulatory
  and litigation proceedings pending against the Group, please see Item 4 "Information
  on the Company--Additional factors which may affect AXA's business" and note
  27 "Litigation" included in Item 18 of this annual report.

SIGNIFICANT SHAREHOLDERS OF AXA MAY HAVE INTERESTS
  CONFLICTING WITH YOUR INTERESTS The Mutuelles AXA, three French mutual insurance
  companies, acting as a group, owned at February 28, 2003, directly and indirectly
  through Finaxa, a holding company they control, approximately 17.69% of the
  issued ordinary shares of AXA representing approximately 28.7% of the voting
  power. Most of the shares owned by the Mutuelles AXA have double voting rights
  pursuant to the provisions of AXA'sstatuts,
  see "Item 10 - Additional Information - Certain



20

Rights of AXA's shareholders - Voting Rights" in
  this annual report. The Mutuelles AXA are parties to agreements pursuant to
  which they have stated their intention to collectively exercise majority control
  over Finaxa. Given the long-term nature of their relationship with AXA, we cannot
  assure you that the interests of the Mutuelles AXA will not, from time to time,
  conflict with your interests as a shareholder. For example, even though the
  Mutuelles do not hold a majority of the total voting power in AXA, a decision
  by the Mutuelles AXA to decline or deter a future offer to acquire control of
  AXA, which other shareholders may find attractive, may prevent other shareholders
  from realizing a control premium for their AXA ordinary shares or ADRs. In addition,
  Finaxa has the right to terminate, under certain circumstances, or limit AXA's
  rights to use the AXA trademark, as described in "Item 3 -Finaxa may terminate
  the licensing to AXA of the AXA trademark which we consider to be important
  to the marketing of our products and services". The existence of this right
  of Finaxa may also deter potential acquirers from making an offer to acquire
  control of AXA. The Mutuelles AXA may decide to increase their interest in AXA
  or to sell all or a portion of the ordinary shares they own at some future date.

The Life & Savings business and the Property &
  Casualty business of the Mutuelles AXA and the Company's French insurance subsidiaries
  use similar distribution channels but are managed in such a way as to maintain
  the legal distinctions between their respective businesses. There are no agreements
  between the Mutuelles AXA and the Company's insurance subsidiaries that restrict
  in any way their ability to compete with one another. The Mutuelles AXA, which
  have no employees, use employees of the Company's French insurance subsidiaries.
  Most of the costs and expenses of operating the Life & Savings business
  and the Property & Casualty business in the Company's French insurance subsidiaries
  (other than commissions and personnel costs) are shared by the relevant Company
  subsidiaries and the Mutuelles AXA and allocated among them through Groupements
  d'Intérêt Economique or "GIEs". GIEs are partnerships
  that perform various common services for their members and allocate associated
  costs and expenses. These costs and expenses currently are allocated on the
  basis of actual use of the specific service, to the extent practicable. The
  manner of managing these insurance businesses or allocating these costs and
  expenses may change in the future in a way that may increase AXA's operating
  costs and adversely affect its results of operations.

FINAXA OWNS THE LICENSING TO AXA OF THE AXA TRADEMARK
  THAT WE CONSIDER TO BE IMPORTANT TO THE MARKETING OF OUR PRODUCTS AND SERVICES Finaxa has a long-term, cooperative relationship
  with the Company and, at February 28, 2003, was the Company's largest single
  shareholder holding, directly and indirectly, ordinary shares representing approximately
  28.7% of the Company's voting power. Among its other relationships with the
  Company, Finaxa owns and licenses to the Company the "AXA" name and
  trademark.

On May 21, 1996, the Company and Finaxa entered into a licensing agreement pursuant to which Finaxa has:

- granted us a non-exclusive license to use the AXA trademark in the jurisdictions in which we currently have operations and in any additional jurisdictions in which the AXA trademark is registered, and
- agreed not to grant licenses to use the AXA trademark to any other company or partnership unless (i) that company or partnership holds an ownership interest in Finaxa or (ii) Finaxa or AXA hold, directly or indirectly, an interest in that company or partnership.

The non-exclusive license grants us the right, subject to the prior written approval of Finaxa, to grant sublicenses to companies controlled, directly or indirectly, by us. Finaxa has no obligation to grant any such approval. Over the past several years, a number of our principal subsidiaries around the world have begun to use the AXA name pursuant to sublicenses granted by us. We are obligated to pay Finaxa pursuant to the licensing agreement an annual fee of762,245 as well as 50% of any net royalties we receive from sublicensees. The non-exclusive license to us may be terminated



21

at any time by either party, three months after delivery to the other party of a written notice of termination. Finaxa has, however, agreed not to exercise its right to terminate the license to us so long as Finaxa is our largest shareholder. Upon termination, we and our subsidiaries are required to cease using the AXA trademark and any sublicenses will immediately terminate. In the event that Finaxa ceases to be our single largest shareholder, Finaxa may decide at a future date to terminate the non-exclusive license of the AXA trademark to us or to seek to alter the terms upon which the license is granted in a way unfavorable to us. Our inability to use the AXA trademark or any adverse change to the terms of the license could have a negative impact on the marketing of our products and services and on our profitability.

JUDGMENTS OF U.S. COURTS MAY NOT BE ENFORCEABLE AGAINST
  US Judgements of U.S. courts, including those
  predicated on the civil liability provisions of the Federal securities laws
  of the United States, may not be enforceable in French courts. As a result,
  our shareholders who obtain a judgement against us in the United States may
  not be able to require us to pay the amount of the judgement.

RISKS RELATED TO OWNERSHIP OF AXA ADSs OR ORDINARY SHARES

THE TRADING PRICE OF AXA ADSs AND DIVIDENDS PAID
  ON AXA ADSs MAY BE MATERIALLY ADVERSELY AFFECTED BY FLUCTUATIONS IN THE EXCHANGE
  RATE FOR CONVERTING EURO INTO U.S. DOLLARS Fluctuations in the exchange rate for converting
  Euro into U.S. dollars may affect the value of AXA ADSs. Specifically, as the
  relative value of the Euro against the U.S. dollar declines, each of the following
  values will also decline:

- the U.S. dollar equivalent of the Euro trading price of AXA ordinary shares on the Paris Bourse, which may consequently cause the trading price of AXA ADSs in the United States to also decline;
- the U.S. dollar equivalent of the proceeds that a holder of AXA ADSs would receive upon the sale in France of any AXA ordinary shares withdrawn from the depositary; and
- the U.S. dollar equivalent of cash dividends paid in Euro on the AXA ordinary shares represented by the AXA ADSs.

THE HOLDERS OF AXA ADSs MAY NOT BE ABLE TO EXERCISE
  THEIR VOTING RIGHTS DUE TO DELAYS IN NOTIFICATION TO AND BY THE DEPOSITARY The depositary for the AXA ADSs may not receive
  voting materials for AXA ordinary shares represented by AXA ADSs in time to
  ensure that holders of AXA ADSs can instruct the depositary to vote their shares.
  In addition, the depositary's liability to holders of AXA ADSs for failing to
  carry out voting instructions or for the manner of carrying out voting instructions
  is limited by the deposit agreement governing the AXA American Depositary Receipt
  facility. As a result, holders of AXA ADSs may not be able to exercise their
  right to vote and may not have any recourse against the depositary or AXA if
  their shares are not voted as they have requested.



22

HOLDERS OF AXA ADSs WILL HAVE LIMITED RECOURSE IF
  AXA OR THE DEPOSITARY FAILS TO MEET THEIR OBLIGATIONS UNDER THE DEPOSIT AGREEMENT
  OR IF THEY WISH TO INVOLVE AXA OR THE DEPOSITARY IN A LEGAL PROCEEDING The deposit agreement expressly limits the
  obligations and liability of AXA and the depositary. Neither AXA nor the depositary
  will be liable if they:

- are prevented, delayed or forbidden from performing any obligation by circumstances beyond their control,
- exercise or fail to exercise discretion under the deposit agreement, or
- take any action based upon the advice of, or information from, legal counsel, accountants, any person presenting ordinary shares for deposit, any holder or owner of an AXA ADR or any other person believed by it in good faith to be competent to give such advice or information.

In addition, the depositary and AXA only have the obligation to participate in any action, suit or other proceeding with respect to the AXA ADSs which may involve them in expense or liability only if they are indemnified. These provisions of the deposit agreement will limit the ability of holders of AXA ADSs to obtain recourse if AXA or the depositary fail to meet their obligations under the deposit agreement or if they wish to involve AXA or the depositary in a legal proceeding.

OUR ADS AND ORDINARY SHARE PRICE COULD BE VOLATILE
  AND COULD DROP UNEXPECTEDLY AND YOU MAY NOT BE ABLE TO SELL YOUR ADRs OR ORDINARY
  SHARES AT OR ABOVE THE PRICE YOU PAID The price at which our ADSs and ordinary shares will trade
  may be influenced by a large number of factors, some of which will be specific
  to us and our operations and some of which will be related to the insurance
  industry and equity markets generally. As a result of these factors, you may
  not be able to resell your ADSs or ordinary shares at or above the price which
  you paid for them. In particular, the following factors, in addition to other
  risk factors described in this section, may have a significant impact on the
  market price of our ADSs or ordinary shares:

- Investor perception of our company, including actual or anticipated variations in our revenues or operating results;
- Announcement by us of intended acquisitions, disposals or financings or speculation about such acquisitions, disposals or financings;
- Changes in our dividend policy, which could result from changes in our cash flow and capital position;
- Sales of blocks of our shares by significant shareholders;
- A downgrade or rumored downgrade of our credit or financial strength ratings, including placement on credit watch;
- Potential litigation involving us or the insurance industry generally;
- Changes in financial estimates and recommendations by securities research analysts;
- Fluctuations in foreign exchange rates and interest rates;
- The performance of other companies in the insurance sector;
- Regulatory developments in the principal markets in which we operate;
- International political and economic conditions, including the effects of terrorist attacks, military operations and other developments stemming from such events and the uncertainty related to these developments; and
- General economic and market conditions.



23

Item 4: Information on the Company

INTRODUCTION

The Company is the holding company for AXA, a worldwide
  leader in financial protection and wealth management, with consolidated gross
  revenues of74.7
  billion for the period ending December 31, 2002 and total assets under management
  as at December 31, 2002 of741.6
  billion, including assets managed on behalf of third party clients of375.6
  billion. Based on available information at December 31, 2001, AXA was the French,
  European and world's largest insurance group based on gross operating profits
  and the world's sixth largest asset manager, at which time it had total assets
  under management of910.0
  billion.

AXA operates primarily in Western Europe, North America
  and the Asia Pacific region and, to a lesser extent, in other regions including
  the Middle East, Africa and South America. AXA has five operating business segments:
  Life & Savings, Property & Casualty, International Insurance (including
  reinsurance), Asset Management, and Other Financial Services. In addition, various
  holding companies within the AXA group conduct certain non-operating activities.
  The tables below summarize certain key financial data by segment for the periods
  and as at the dates indicated.

|(in euro millions, except percentages)          |                          |  |       |  |          |  |       |  |        |  |      | 
|----------------------------------------------- | ------------------------ |  | ----- |  | -------- |  | ----- |  | ------ |  | ---- | 
|                                                |                          |  |       |  |          |  |       |  |        |  |      | 
|Consolidated gross premiumsand
      net income |                          |  |       |  |          |  |       |  |       
|                                                | Years ended December 31, | 
|                                                | 2002                     |  | 2001  |  | 2000 (a) | 
|                                                |                          |  |       |  |          |  |       |  |        |  |      | 
|Consolidated gross premiums                     |                          |  |       |  |          |  |       |  |        |  |      | 
|and financial services revenues                 |                          |  |       |  |          |  |       |  |        |  |      | 
|Life & Savings (b)                              | 48,586                   |  | 65%   |  | 48,399   |  | 65%   |  | 45,997 |  | 58%  | 
|Property &
      Casualty                       | 15,948                   |  | 21%   |  | 15,896   |  | 21%   |  | 15,579 |  | 19%  | 
|International
      Insurance                   | 5,762                    |  | 8%    |  | 5,678    |  | 8%    |  | 3,651  |  | 5%   | 
|Asset Management                                | 3,411                    |  | 5%    |  | 3,730    |  | 5%    |  | 2,984  |  | 4%   | 
|Other Financial
      Services                  | 1,020                    |  | 1%    |  | 1,128    |  | 2%    |  | 11,760 |  | 15%  | 
|                                                |                          |  |       |  |          |  |       |  |        |  |      | 
|Consolidated gross premiums                     |                          |  |       |  |          |  |       |  |        |  |      | 
|and financial services revenues                 | 74,727                   |  | 100%  |  | 74,832   |  | 100%  |  | 79,971 |  | 100% | 
|                                                |                          |  |       |  |          |  |       |  |        |  |      | 
|Net income                                      |                          |  |       |  |          |  |       |  |        |  |      | 
|Life & Savings                                  | 1,063                    |  | 88%   |  | 922      |  | 110%  |  | 1,802  |  | 78%  | 
|Property &
      Casualty                       | (19)                     |  | (2%)  |  | 52       |  | 6%    |  | 135    |  | 6%   | 
|International
      Insurance                   | (176)                    |  | (15%) |  | (386)    |  | (46%) |  | 97     |  | 4%   | 
|Asset Management                                | 218                      |  | 18%   |  | 153      |  | 18%   |  | 166    |  | 7%   | 
|Other Financial
      Services                  | 119                      |  | 10%   |  | 97       |  | 12%   |  | 121    |  | 5%   | 
|                                                |                          |  |       |  |          |  |       |  |        |  |      | 
|Net income from operating segments              | 1,206                    |  | 100%  |  | 838      |  | 100%  |  | 2,321  |  | 100% | 
|                                                |                          |  |       |  |          |  |       |  |        |  |      | 
|Holding companies                               | (257)                    |  |       |  | (318)    |  |       |  | 1,123  |  |      | 
|                                                |                          |  |       |  |          |  |       |  |        |  |      | 
|Net income                                      | 949                      |  |       |  | 520      |  |       |  | 3,444  |  |      | 
|                                                |                          |  |       |  |          |  |       |  |        |  |      | 

|(a) | Pro-forma New French
      GAAP according to new French Regulations that became effective on January
      1, 2001, as if New French GAAP had been applied since January 1, 2000. See
      notes 2 and 32 to the consolidated financial statements included elsewhere
      in the annual report for further information.                                                                                                                                                                                                             
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Gross premiums
      received from policyholders in respect of life & savings products which
      are classified as "universal life" or" investment
      contracts" (including separate account (unit-linked) products) for
      U.S. GAAP, are recorded as revenue under French GAAP. Under U.S. GAAP, such
      amounts received are recorded as deposits, and only the policy-related fees
      charged to the policyholders for costs of insurance, administration, investment
      management, etc, are recorded as revenue.
|



|                                                   |        |  |        |  |        | 
|-------------------------------------------------- | ------ |  | ------ |  | ------ | 
|                                                   | 2002   |  | 2001   |  | 2000   | 
|                                                   |        |  |        |  |        | 
|For the years ended
      December 31,             |        |  |        |  |        | 
|Net income per ordinary
      share (in euros) (a) |        |  |        |  |        | 
|Basic                                              | 0.55   |  | 0.30   |  | 2.57   | 
|Diluted                                            | 0.55   |  | 0.32   |  | 2.44   | 
|                                                   |        |  |        |  |        | 
|At December 31,                                    |        |  |        |  |        | 
|Shareholders'
      equity (in euro millions)      | 23,711 |  | 24,780 |  | 24,322 | 
|Average
      share price (in euros)               | 17.8   |  | 30.3   |  | 37.9   | 
|Share
      price as at December 31 (in euros)     | 12.8   |  | 23.5   |  | 38.5   | 
|                                                   |        |  |        |  |        | 

|(a) | The per ordinary share price data in the table for 2000 have been restated to take account of the 4-for-1 stock split approved by AXA shareholders at the annual general meeting of the shareholders held on May 9, 2001.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                            |                 |  |         |  |          | 
|------------------------------------------- | --------------- |  | ------- |  | -------- | 
|(in euro millions)                          |                 |  |         |  |          | 
|                                            |                 |  |         |  |          | 
|AXAs Total Assets Under
      Management   |                 |  |         |  |          | 
|                                            | At December 31, | 
|                                            | 2002            |  | 2001    |  | 2000 (a) | 
|                                            |                 |  |         |  |          | 
|AXA (general account assets)                | 275,531         |  | 287,728 |  | 305,546  | 
|Separate account (unit-linked)
      assets | 90,458          |  | 115,723 |  | 117,261  | 
|                                            |                 |  |         |  |          | 
|Sub-total                                   | 365,989         |  | 403,451 |  | 422,807  | 
|                                            |                 |  |         |  |          | 
|Managed on behalf of third parties          | 375,567         |  | 506,546 |  | 471,674  | 
|                                            |                 |  |         |  |          | 
|TOTAL                                       | 741,556         |  | 909,997 |  | 894,481  | 
|                                            |                 |  |         |  |          | 

|(a) | Restated in respect of "AXA" only due to changes in presentation in accordance with new French Regulations effective January 1, 2001.
|--- | -------------------------------------------------------------------------------------------------------------------------------------

For additional information on AXA's business segments, see "Item 5 - Operating and Financial Review and Prospects - Operating Results by Segment" and note 31 "Segment Information" to the consolidated financial statements included in Item 18 of this annual report.





AXAS VISION AND STRATEGY

AXA aims to be the world leader in financial protection and wealth management.

AXA seeks to protect its clients against a variety of risks and to help them build wealth over their lifetime. It does so by providing insurance, reinsurance, investment management, financial advice and related financial services. AXA is a global company and offers its services in the world's major developed markets. It is also present in a number of other markets where sizeable businesses can be developed ethically and profitably.

AXA capitalizes on its core strengths: over 50 million clients worldwide; a 44,000-strong captive distribution force; a global brand; unique product skills in areas as diverse as insurance underwriting, long-term investments, and financial advice, all on a scale that enables AXA to leverage best practices and operations platforms across the group. In realizing its vision, AXA strives to fulfill the needs of its three principal stakeholders:

- Clients:AXA addresses
    the needs of individual clients, as well as the needs of small to medium-sized
    companies, either directly or through proprietary and third party distribution
    channels. AXA also serves institutional and large corporate clients by leveraging
    strong market positions and generating synergies with other lines of business.
    AXA answers the needs of these clients by offering "best-in-class"
    advice, products and service.
- Shareholders:AXA aims to provide its shareholders with attractive total returns, derived from steady growth in earnings per share and embedded value under normal market conditions. AXA is also developing strong corporate governance policies and transparency in order to build long-term confidence with its shareholders.
- Employees and sales associates:AXA
    values professionalism, innovation, pragmatism, team spirit and integrity.
    By promoting these values, AXA strives to attract, develop and reward talent
    in its core activities so as to be a leader in each local market in terms
    of compensation, training, coaching and mobility, as well as one of the most
    attractive companies to work for in the global financial services industry.

To achieve its vision, AXA has identified two primary business objectives:

|1. | a more focused geographical presence aimed at "Regional leadership or exit", a strategy that focuses on either (i) becoming the reference company and attaining a leading position in the regional markets in which it operates, notably through opportunistic acquisitions centered on western Europe, the United States and selected Asian markets; or (ii) exiting the region if AXA believes it cannot attain a sizeable market penetration without undue cost and effort; and
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2. | continued focus on operational efficiency over the next three years, as set out below:                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   



26

HISTORY AND DEVELOPMENT

AXA is a French société anonyme à
  directoire et conseil de surveillance (a form of limited liability company)
  with a Management Board and a Supervisory Board. The Company's headquarters
  are located at 25 Avenue Matignon, 75008 Paris, France and its telephone number
  is (331) 40 75 57 00. For information on AXA's principal trading markets for
  its ordinary shares and ADSs, see "Item 9 - The Offer and Listing"
  included elsewhere in this annual report. The founding predecessor of AXA was
  organized under the laws of France in 1852. The Company's corporate existence
  will continue, subject to dissolution or prolongation until December 31, 2059.

SIGNIFICANT ACQUISITIONS

AXA originated from several French regional mutual insurance companies, known collectively as "les Mutuelles Unies" and has expanded its operations worldwide over the last several years through the following principal acquisitions:

- In 1982, les Mutuelles Unies took control of Groupe Drouot and following this transaction the new group began operating under the name of AXA.
- In 1986, AXA obtained control of Groupe Présence
    and, in 1988, transferred its insurance businesses to Compagnie du Midi and
    operated under the name of AXA Midi, which subsequently reverted back to the
    AXA name. Two years later, the French insurance operations were reorganized
    to operate by distribution channel.
- In 1992, AXA took control of the Equitable Companies Incorporated in the United States following the demutual-ization of Equitable Life. In 1999, the Equitable Companies Incorporated adopted the name AXA Financial, Inc. ("AXA Financial").
- In 1995, AXA obtained a majority ownership interest in National Mutual Holdings, following the demutualization of National Mutual Life with operations in Australia, New Zealand and Hong Kong. In 1999, National Mutual Holdings changed its name to AXA Asia Pacific Holdings Ltd.
- In 1997, AXA merged with Compagnie UAP. This transaction enabled AXA to significantly increase its size and reinforce its strategic positions, especially in Europe.
- In 1998, AXA purchased the minority interests of AXA Royale Belge in Belgium.
- In 1999, AXA acquired Guardian Royal Exchange in Great
    Britain through its subsidiary Sun Life & Provincial Holdings ("SLPH").
    The Guardian Royal Exchange acquisition allowed AXA to further establish its
    positions in both the United Kingdom and Germany.
- In 2000, AXA (i) acquired a majority ownership interest
    in Nippon Dantai Life Insurance Company in Japan, (ii) acquired the remaining
    minority interests in its operations in SLPH (subsequently renamed AXA UK
    Holdings), AXA China Region in Hong Kong (through AXA Asia Pacific Holdings)
    and AXA Financial, Inc. in the United States, and (iii) acquired the U.S.
    asset management company Sanford C. Bernstein, through Alliance Capital (a
    subsidiary of AXA Financial).

For information relating to the ownership structure of the Group, see "Item 7 - Major Shareholders and Related Party Transactions", included elsewhere in this annual report.



27

A summary of the amounts invested in significant transactions is provided below.

|(in euro billions)                                 |  |      |  |      |  |      | 
|-------------------------------------------------- |  | ---- |  | ---- |  | ---- | 
|                                                   |  |      |  |      |  |      | 
|Amounts invested
      in significant acquisitions |  | 2002 |  | 2001 |  | 2000 | 
|                                                   |  |      |  |      |  |      | 
|North America                                      |  |      |  |      |  |      | 
|AXA
      Financial, Inc                           |  | -    |  | -    |  | 11.3 | 
|Sanford
      C. Bernstein Inc.                    |  | -    |  | -    |  | 4.0  | 
|                                                   |  |      |  |      |  |      | 
|Asia Pacific                                       |  |      |  |      |  |      | 
|Nippon
      Dantai                                |  | -    |  | -    |  | 2.0  | 
|AXA
      China Region                             |  | -    |  | -    |  | 0.5  | 
|                                                   |  |      |  |      |  |      | 
|Europe                                             |  |      |  |      |  |      | 
|Sun
      Life & Provincial Holdings               |  |      |  |      |  |      | 
|(subsequently
      renamed AXA UK Holdings)       |  | -    |  | -    |  | 3.7  | 
|                                                   |  |      |  |      |  |      | 
|TOTAL                                              |  |     |  |     |  | 21.5 | 
|                                                   |  |      |  |      |  |      | 

SIGNIFICANT DIVESTITURES

Since 2000, AXA has divested certain operations as part of its strategy to focus on its core businesses and markets. The principal divestitures during this period are summarized below.

- In 2000, the Company, AXA Financial and certain of its affiliates sold their 71% equity interest in Donaldson, Lufkin& Jenrette to Credit Suisse Group.
- In 2001, AXA completed the sale of Banque Worms to Deutsche Bank. Under the terms of the sale agreement, AXA retained certain assets including those relating to discontinued business activities and a majority of its securities portfolio, as well as provided certain guarantees on potential non-performing loans.

For further details on significant transactions undertaken by AXA see note 4, "Business Combinations", and note 20, "Net Investment Result", in the consolidated financial statements, included in Item 18 of this annual report.



28

AXA GROUP:

SIMPLIFIED ORGANIZATION CHART AS AT DECEMBER 31, 2002

Set forth below is a simplified organization chart of AXA as at December 31, 2002. For additional information, please see note 3 "Principal Subsidiaries and Companies accounted for under the equity method" to the consolidated financial statements.

Please note that the percentage on the left represents the economic interest and the percentage on the right represents the percentage of control.









29





30

RATINGS

The Company and certain of its insurance subsidiaries are rated by recognized rating agencies. The significance of individual ratings varies from agency to agency. In the opinion of the rating agencies, companies assigned ratings at the top end of the range have a stronger capacity to repay debt and make payment on claims compared to companies assigned ratings at the lower end of the range.

Insurance rating agencies focus on the financial strength of the relevant insurance company and its capacity to meet the obligations arising on insurance policies. Certain of these agencies and their respective insurance rating scales are set out below.

|Rating Agency                                       | Highest Rating       | Lowest Rating           
|--------------------------------------------------- | -------------------- | ------------------------
|                                                   
|Standard & Poor's Corp. ("Standard
      & Poor's") | AAA                  | R                       
|                                                    | ("extremely strong") | ("regulatory action")   
|Moody's Investor Services ("Moody's")               | Aaa                  | C                       
|                                                    | ("extremely strong") | ("lowest")              
|Fitch, Inc. ("Fitch")                               | AAA                  | D                       
|                                                    | ("extremely strong") | ("order of liquidation")
|                                                    |                      |                         

Debt ratings focus on the likelihood that the company will make timely payments of principal and interest. The rating scales for the agencies above are set out below.

|Rating Agency                                                                   | Highest Rating       | Lowest Rating
|------------------------------------------------------------------------------- | -------------------- | -------------
|                                                                               
|Standard & Poor's                                                               | AAA                  | D            
|                                                                                | ("extremely strong") | ("default")  
|Moody's                                                                         | Aaa                  | C            
|                                                                                | ("best")             | ("lowest")   
|Fitch                                                                           | AAA                  | D            
|                                                                                | ("highest")          | ("default")  
|                                                                               
|                                                                                |                      |              
|                                                                                |                      |              
|The commercial paper rating
      scales for the agencies above are as follows: |                     
|                                                                               
|Rating Agency                                                                   | Highest Rating       | Lowest Rating
|                                                                               
|Standard & Poor's                                                               | A-1                  | D            
|                                                                                | ("extremely strong") | ("default")  
|Moody's                                                                         | Prime-1 or P-1       | Not Prime    
|                                                                                | ("superior")         | ("Not Prime")
|Fitch                                                                           |                      | D            
|                                                                                | ("highest")          | ("default")  
|                                                                                |                      |              



31

The relevant ratings for the Company and its principal insurance subsidiaries are as follows:

|                                                             |                   |      |                | 
|------------------------------------------------------------ | ----------------- | ---- | -------------- | 
|                                                             |                   | 2002 |                | 
|                                                             | Agency            |      | Rating         | 
|                                                             |                   |      |                | 
|Insurer Financial Strength Ratings                           |                   |      |                | 
|The Company's principal insurance subsidiaries               | Standard & Poor's |      | AA-            | 
|                                                             | Moody's           |      | Aa3            | 
|                                                             | Fitch             |      | AA             | 
|                                                             |                   |      |                | 
|Ratings of the Companys Long
      Term and Short Term Debt |                   |      |                | 
|Senior Debt                                                  | Standard & Poor's |      | A              | 
|                                                             | Moody's           |      | A2             | 
|                                                             | Fitch             |      | A+             | 
|Long Term Subordinated Debt                                  | Standard & Poor's |      | BBB+           | 
|                                                             | Moody's           |      | A3             | 
|                                                             | Fitch             |      | A- (non dated) | 
|                                                             |                   |      | A (dated)      | 
|Short Term Debt (Commercial Paper)                           | Standard & Poor's |      | A-1            | 
|                                                             | Moody's           |      | P-1            | 
|                                                             | Fitch             |      |                | 
|                                                             |                   |      |                | 

The ratings set forth above may be subject to revision or withdrawal at any time by the assigning rating organization. None of these ratings are an indication of the historic or potential performance of the Company's ordinary shares, ADSs, ADRs or debt securities and should not be relied upon with respect to making an investment in any of these securities. The Company accepts no responsibility for the accuracy or reliability of the ratings.



32

BUSINESS OVERVIEW

The table below presents AXA's consolidated gross revenues by segment for each of its major geographic markets for the years indicated.

|                                                                         
|-------------------------------------------------------------------------
|Breakdown of AXA's gross premiums and financial services
        revenues
|                                                                         
|                                                                         
|                                                                         
|                                                                         
|                                                                         
|                                                                         
|                                                                         
|Total gross premiums and financial services revenues (in euro millions)  
|                                                                         
|Life & Savings                                                           
|France                                                                   
|United States                                                            
|United Kingdom                                                           
|Japan                                                                    
|Germany                                                                  
|Belgium                                                                  
|Other                                                                    
|                                                                         
|Property & Casualty                                                      
|France                                                                   
|Germany                                                                  
|United Kingdom                                                           
|Belgium                                                                  
|Other                                                                    
|                                                                         
|International Insurance                                                  
|AXA Corporate Solutions                                                  
|AXA Assistance                                                           
|Other                                                                    
|                                                                         
|Asset Management                                                         
|Alliance Capital                                                         
|AXA Investment Managers                                                  
|National Mutual Funds                                                    
|Management (a)                                                           
|                                                                         
|Other Financial Services                                                 
|Donaldson, Lufkin & Jenrette                                             
|(sold in 2000)                                                           
|French banks                                                             
|German banks                                                             
|AXA Bank Belgium                                                         
|Other financial services                                                 
|and real estate companies                                                
|                                                                         

|(a) | In 2001, AXA Asia Pacific Holdings
      (the parent company of National Mutual Funds Management) and Alliance Capital
      Management entered into an asset management joint venture agreement. The
      activities of National Mutual Funds Management that were not part of the
      joint venture agreement are closely aligned to those reported in the Australia
      / New Zealand life operations of the Life & Savings Segment, and hence
      reclassification to this segment was made effective January 1, 2002. Due
      to the immaterial impact on the AXA Group accounts, prior period results
      have not been restated to reflect this change in classification.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



33

SEGMENT INFORMATION

LIFE & SAVINGS SEGMENT

AXA's Life & Savings Segment offers a broad range
  of life insurance products including retirement products as well as health insurance
  products for both individuals and corporate clients, with an emphasis on savings-related
  products including separate account (unit-linked) products. The Life & Savings
  Segment accounted for48.6
  billion or 65% of AXA's consolidated gross premiums and financial services revenues
  for the year ended December 31, 2002 (2001:  48.4
  billion or 65%, respectively).

The table below summarizes AXA's Life & Savings gross premiums and gross insurance liabilities by geographic region for the periods and as at the dates indicated.

|(in euro millions, except percentages) |                                                       |  |                         |  |                             |  |        |  |                      | 
|-------------------------------------- | ----------------------------------------------------- |  | ----------------------- |  | --------------------------- |  | ------ |  | -------------------- | 
|                                       |                                                       |  |                         |  |                             |  |        |  |                      | 
|                                       | Gross premiums andfinancial
        services revenues |  |                         |  |                            
|                                       |                                                       |  | Years endedDecember 31, |  | Gross insurance liabilities | 
|                                       |                                                       |  | 2002                    |  | 2001                        |  | 2000   |  | at December 31, 2002 | 
|                                       |                                                       |  |                         |  |                             |  |        |  |                      | 
|France                                 | 21%                                                   |  | 10,423                  |  | 10,997                      |  | 12,528 |  | 79,545               | 
|United States                          | 26%                                                   |  | 12,726                  |  | 11,642                      |  | 12,483 |  | 72,821               | 
|Japan                                  | 13%                                                   |  | 6,428                   |  | 5,475                       |  | 3,353  |  | 28,253               | 
|United Kingdom                         | 17%                                                   |  | 8,362                   |  | 9,086                       |  | 7,939  |  | 61,394               | 
|Germany                                | 6%                                                    |  | 3,140                   |  | 2,997                       |  | 2,912  |  | 27,580               | 
|Belgium                                | 3%                                                    |  | 1,629                   |  | 1,686                       |  | 1,099  |  | 11,166               | 
|Others                                 | 12%                                                   |  | 5,877                   |  | 6,517                       |  | 5,682  |  | 27,168               | 
|                                       |                                                       |  |                         |  |                             |  |        |  |                      | 
|TOTAL                                  | 100%                                                  |  | 48,586                  |  | 48,399                      |  | 45,997 |  | 307,927              | 
|                                       |                                                       |  |                         |  |                             |  |        |  |                      | 
|Represented by:                        |                                                       |  |                         |  |                             |  |        |  |                      | 
|Gross written premiums                 | -                                                     |  | 48,048                  |  | 47,913                      |  | 45,560 |  | -                    | 
|Others revenues (a)                    | -                                                     |  | 539                     |  | 486                         |  | 436    |  | -                    | 
|                                       |                                                       |  |                         |  |                             |  |        |  |                      | 

|(a) | Includes revenues from other activities (commissions and related fees associated with the management of AXA's general account assets and mutual funds sales).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------



34

Market

2002 was similar to 2001 in that the life & savings markets in which AXA operates were adversely affected by the continued decrease in the global stock markets.  Consequently, consumer demand for unit-linked products was mediocre and consumers were encouraged to be more cautious in relation to their investment decisions. As a result, consumers returned to more traditional financial protection products, such as products with some form of guarantees. Despite the continued decrease in global stock markets, the long-term view is of increasing demand for insurance products. In Europe, the post-World War II "baby boom" generation is creating an ageing population and, as a result, more countries are reducing the level of state funded welfare systems. This trend has led to an increase in retirement and other savings-oriented product advice and services in respect of financial, tax and estate planning.

In each of its principal markets, AXA operates through well-established life insurance companies. AXA's principal life insurance subsidiaries are set out below.

|France:         | AXA France Vie (a result of a merger
      in 2002 between AXA Assurances Vie and AXA Conseil Vie) and AXA France Collectives       
|--------------- | ------------------------------------------------------------------------------------------------------------------------------------
|United States:  | The Equitable Life Assurance Society
      of the United States and its insurance and distribution subsidiaries and
      affiliates
|United Kingdom: | AXA Sun Life plc                                                                                                                    
|Japan:          | AXA Insurance Co. and AXA Group Life
      Insurance Co.                                                                            
|Germany:        | AXA Leben Versicherung AG                                                                                                           
|Belgium:        | AXA Belgium SA                                                                                                                      

Commentary on the 2002 market conditions in the geographical markets in which AXA operates is provided in "Item 5 - Operating and Financial Review and Prospects - Market Conditions in Year 2002".

The table below presents the life insurance markets in which AXA operates ranked by worldwide gross premiums in 2001, along with AXA's ranking (by market share).

Based on worldwide gross life insurance premiums in 2001

|               |                        |  |            | 
|-------------- | ---------------------- |  | ---------- | 
|               | Country Statistics (a) |  | AXA (b)    | 
|Countries      | Ranking                |  | % premiums | 
|               |                        |  | written    | 
|               |                        |  |            | 
|United States  | 1                      |  | 31%        | 
|Japan          | 2                      |  | 25%        | 
|United Kingdom | 3                      |  | 11%        | 
|France         | 4                      |  | 5%         | 
|Germany        | 5                      |  | 4%         | 
|Belgium        | 17                     |  | 1%         | 
|               |                        |  |            | 

|(a) | Source: Swiss Re Sigma report 6/2002 "World insurance in 2001", measured in U.S. dollars.                           
|--- | --------------------------------------------------------------------------------------------------------------------
|(b) | In general, based on 2001 market data for each specific country or an estimate for 2002.                            
|(c) | Relates to the variable annuity products.                                                                           
|(d) | Based on annualized new business premium equivalent (regular premium plus one-tenth of new business single premium).



35

Other Life & Savings Operations

In addition to the principal markets discussed above, AXA offers life, health and retirement products in other countries in Europe (Netherlands, Luxembourg, Italy, Spain, Portugal, Austria, Hungary, Switzerland and Turkey), Morocco, Canada, Australia, New Zealand, Hong Kong, Singapore, and China, as well as other countries in South America, Africa, the Middle East and the Asia Pacific region. The products offered in these markets are offered through various distribution channels, including general agents, salaried sales forces, bank networks, financial advisors and brokers.

Competition

The nature and level of competition varies among the countries in which AXA operates. There is strong competition among companies for all the types of individual and group life & savings products sold by AXA. Many other insurance companies offer one or more products similar to those offered by AXA, in some cases using similar marketing techniques. In addition, AXA competes increasingly with banks, mutual funds, investment advisers and other financial institutions for sales of savings-related investment products and, to a lesser extent, life insurance products.

The principal competitive factors affecting the Life & Savings Segment's business include:

- price,
- ratings for an insurer's financial strength and claims paying ability (at March 31, 2003, the principal entities in the Life & Savings Segment were rated AA by Fitch IBCA, AA- by Standard & Poor's and Aa3 by Moody's)
- size, strength and quality of the distribution platform,
- range of product lines and product quality,
- quality of service,
- investment management performance,
- historical levels of bonuses with respect to participating contracts,
- reputation, visibility and recognition of brand, and
- changes in regulations that may affect the policy charging structure relating to commission and administrative charges.

Products

AXA's Life & Savings products include a broad range of life, health, retirement and savings-related products marketed to both individuals and corporate clients, the latter in the form of group contracts. The life and savings-related products offered by AXA's operations include : term life, whole life, universal life, mortgage endowment, deferred annuities, immediate annuities, variable life and other investment-based products. The health products offered include critical illness and permanent health insurance products. The nature of the products offered by AXA varies from market to market.



36

The table below presents consolidated gross written premiums (after intersegment elimination) and gross insurance liabilities by major product for the periods and as at the dates indicated for AXA's Life & Savings Segment.

|(in euro millions, except percentages) |                                               |  |                             |  |        |  |        |  |                     
|-------------------------------------- | --------------------------------------------- |  | --------------------------- |  | ------ |  | ------ |  | --------------------
|                                       |                                               |  |                             |  |        |  |        |  |                     
|Life & Savings Segment                 |                                               |  |                             |  |        |  |        |  |                     
|                                       | Gross premiums andfinancial services revenues |  |                             | 
|                                       | Years endedDecember
        31,               |  | Gross insurance liabilities | 
|                                       |                                               |  | 2002                        |  | 2001   |  | 2000   |  | at December 31, 2002
|                                       |                                               |  |                             |  |        |  |        |  |                     
|Individual                             | 50%                                           |  | 24,136                      |  | 22,426 |  | 23,332 |  | 171,319             
|Group                                  | 11%                                           |  | 5,298                       |  | 4,083  |  | 3,313  |  | 35,000              
|                                       |                                               |  |                             |  |        |  |        |  |                     
|Retirement/annuity/investment          |                                               |  |                             |  |        |  |        |  |                     
|contracts                              | 61%                                           |  | 29,435                      |  | 26,509 |  | 26,645 |  | 206,320             
|Life contracts
      (including        |                                               |  |                             |  |        |  |        |  |                     
|endowment contracts)                   | 22%                                           |  | 10,481                      |  | 13,407 |  | 12,006 |  | 77,533              
|Health contracts                       | 13%                                           |  | 6,067                       |  | 5,474  |  | 4,244  |  | 9,696               
|Other                                  | 4%                                            |  | 2,065                       |  | 2,522  |  | 2,664  |  | 14,379              
|                                       |                                               |  |                             |  |        |  |        |  |                     
|TOTAL                                  | 100%                                          |  | 48,048                      |  | 47,913 |  | 45,560 |  | 307,927             
|                                       |                                               |  |                             |  |        |  |        |  |                     
|Total includes:                        |                                               |  |                             |  |        |  |        |  |                     
|Separate account
      (unit-linked)   |                                               |  |                             |  |        |  |        |  |                     
|contracts                              | 30%                                           |  | 14,344                      |  | 16,767 |  | 19,612 |  | 90,011              
|UK "with-profit"
      business        | 7%                                            |  | 3,128                       |  | 3,443  |  | 2,384  |  | 30,745              
|                                       |                                               |  |                             |  |        |  |        |  |                     

Certain of AXA's life & savings products provide features which enable the policyholders to participate in the excess of assets over the liabilities (the surplus) of the life company issuing the contract through an interest or bonus crediting rate. AXA offers participating contracts in all of its principal life & savings operations. The policyholder may participate in the investment return and/or in part of the operating profits earned by the life insurance company. The nature and extent of participation by the policyholder varies from country to country. Therefore, such participations, including policyholder participations on UK with-profit business (explained below), are treated as dividends that may either increase the present value of future policy benefits or be paid in cash to the policyholder in the year the bonus is credited.



UK with-profit business

Specific to the United Kingdom, the participating contract, also known as the "with-profit" contract, is offered by many life insurance companies in the United Kingdom, including AXA Sun Life. For "with-profit" contracts, policyholders' premiums are paid into a life insurance company's participating ("with-profit") fund, which is part of a company's long-term insurance business fund. In the participating ("with-profit") fund, the premiums are invested in a range of assets, including fixed maturity and equity securities, real estate and loans. The participating ("with-profit") policyholders are entitled to receive a share of the profits arising from these investments. The policyholders' share of the profits, referred to as bonuses, include both regular bonuses and terminal bonuses. These bonuses are either paid on or credited to "with-profit" contracts held in the fund as recommended by the company's actuary and approved by its board of directors. The regular bonuses are designed to provide a return to the policyholder through a periodic increase in benefits and are credited to the policyholder at regular intervals. Regular bonuses represent a partially smoothed return of investment income, but do not reflect the return earned by the insurance company in any one period. Once credited, regular bonuses are guaranteed to be paid at maturity, death or as otherwise specified in the policy. Terminal bonuses, which are not guaranteed in advance of payment, are designed to provide policyholders with their share of total investment performance (including investment income and realized and unrealized investment gains or losses) and other experience of the participating ("with-profit") fund (including expenses, mortality experience and income taxes). Terminal bonuses can represent a significant portion of the total amount paid at maturity (often exceeding 50%) or upon surrender prior to maturity. The amount of regular and terminal bonus to be paid is determined at the discretion of management.

Following policyholder and court approvals, in 2001 AXA Equity & Law underwent a financial reorganization whereby the life insurance funds were transferred to AXA Sun Life and fundamentally restructured. A portion of the assets that accumulated over the years (which we refer to in this annual report as the "inherited estate") were attributed to AXA as the shareholder, less a portion allocated to the "with-profit" policyholders in the form of a reorganization bonus, based on the number of eligible policyholders that elected in favor of this plan. For further information on the financial reorganization, please refer to note 4 "Business Combinations" to the consolidated financial statements included in Item 18 in this annual report.

Variable life and annuity products

Variable life and variable annuity product benefits may be linked to investments supporting such contracts, referred to in this annual report as "separate account (unit-linked) contracts" or "unit-linked contracts".  In general, the investment risk (and reward) is transferred to the policyholder while the life company earns fee income from managing the separate account assets. However, there may be certain types of variable products that offer guarantees, such as guarantees of minimum income benefits or minimum death benefits.

Over the past few years, AXA's life & savings operations
  have experienced significant growth in savings-related unit-linked products.
  This growth has been notable in Europe and in the Asia Pacific region, and is
  attributable to (i) an increase in consumer awareness of such products, (ii)
  government initiatives to move away from state funded pensions to private funded
  pensions, and (iii) favorable financial market performance up to 2000. A similar
  trend also existed in the U.S. life & savings operations. However, due to
  a significant shift in product mix, as a result of deterioration in the global
  financial market performance since 2001, gross premiums on such business have
  decreased from19.6
  billion in 2000 to14.3
  billion in 2002. However, AXA believes it should experience growth in this product
  area again once financial markets recover and demonstrate sustainable performance.



38

Distribution

AXA distributes its life & savings products through a number of channels that vary from country to country, in particular through exclusive agents, independent brokers, salaried sales forces, direct marketing (including internet sales) and specialized networks (including banks and other financial services providers). In Europe, the same distribution channels are used by AXA's life & savings operations and its property & casualty insurance operations.

The distribution channels used by AXA's principal life & savings operations, based on consolidated gross premiums from new business for the year ended December 31, 2002, are presented below.

|                                 |                    |  |                      |  |                           | 
|-------------------------------- | ------------------ |  | -------------------- |  | ------------------------- | 
|Based
      on gross premiums    | Agents and         |  | Intermediaries,      |  | Other networks, including | 
|from new business
      in 2002: | direct sales force |  | independent advisers |  | direct marketing,         | 
|                                 |                    |  | & brokers            |  | corporate partnerships    | 
|                                 |                    |  |                      |  | and bank networks         | 
|                                 |                    |  |                      |  |                           | 
|France (a)                       | 69%                |  | 22%                  |  | 9%                        | 
|United States                    | 45%                |  | 55%                  |  | -                         | 
|Japan (b)                        | -                  |  | 30%                  |  | 70%                       | 
|United Kingdom                   | 5%                 |  | 87%                  |  | 8%                        | 
|Germany                          | 51%                |  | 37%                  |  | 12%                       | 
|Belgium (c)                      | 2%                 |  | 28%                  |  | 70%                       | 
|                                 |                    |  |                      |  |                           | 

|(a) | Based on total gross
      written premiums, the distribution channels used in France were 54% for
      the "Agents and direct sales force", 38% for the "Intermediaries,
      independent advisers & brokers" and 8% for "Others" (2001:
      58%, 34% and 8%, respectively).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Approximately 70% of
      the products are distributed through affinity groups, which include the
      Chamber of Commerce and Industry and corporate direct sales (to individuals).                                                                                           
|(c) | During 2002,
      several brokers in Belgium became bancassurance distributors and consequently
      have been reclassified from"Agents
      and direct sales force" to "Other networks, including direct marketing
      / corporate partnerships and bank networks".        
|   



39

Surrenders and Lapses

For most life and retirement type products, costs in the first year are higher than costs in subsequent years due to first year commissions and the costs of underwriting and issuing a contract.  Consequently, the rate of policies remaining in-force and not lapsing, also known as the "persistency rate", plays an important role in profitability. The majority of individual retirement products and individual life & savings products issued by AXA may be surrendered for a cash surrender value. Most of the individual life and retirement products issued by AXA have front-end charges (or subscription fees), which are assessed at the inception date of the contract and/or surrender charges (charges assessed in the case of early surrender). Both front-end charges and surrender charges are intended to offset a portion of the acquisition costs.

Total surrenders and lapses for 2002 and the ratio of surrenders and lapses to average gross insurance reserves for the periods indicated are presented below.

Yearsended December 31,

|                      |                                 |      |      |                                    |       |      |   |      | 
|--------------------- | ------------------------------- | ---- | ---- | ---------------------------------- | ----- | ---- | - | ---- | 
|                      | 2002                            | 2002 |      | 2001                               |       | 2000 |  
|                      | Total surrenders &
      lapses |      |      | Surrenders & 
        lapses ratio |       |      |  
|                      |                                 |      |      |                                    |       |      |   |      | 
|                      | (in euro millions)              | %    |      | %                                  |       |      | % |     
|                      |                                 |      |      |                                    |       |      |   |      | 
|French operations     | 4,989                           |      | 6.6% |                                    | 6.8%  |      |   | 7.4% | 
|US operations (b)     |                                 |      |      |                                    |       |      |   |      | 
|Individual life       | 1,042                           |      | 4.0% |                                    | 3.8%  |      |   | 3.8% | 
|Individual retirement | 4,408                           |      | 9.8% |                                    | 9.0%  |      |   | 9.7% | 
|Japan (a)             | 2,707                           |      | 9.5% |                                    | 13.6% |      |   | 5.6% | 
|UK operations (b)     | 4,097                           |      | 7.6% |                                    | 7.0%  |      |   | 6.0% | 
|German operations     | 309                             |      | 1.2% |                                    | 1.3%  |      |   | 1.5% | 
|Belgian operations    | 637                             |      | 6.4% |                                    | 5.5%  |      |   | 7.0% | 
|                      |                                 |      |      |                                    |       |      |   |      | 

|(a) | AXA Insurance Co. and AXA Group Life Insurance Co. (formerly known as Nichidan Life) includes the former operations of Nippon Dantai that were acquired in March 2000. Given that these operations have a September 30 year-end, only six-months of results were reported in 2000 as compared to a full year in 2001 and 2002.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Amounts reported for the US and UK life operations exclude lapses and, for US operations, excludes institutional separate accounts.                                                                                                                                                                                           



40

PROPERTY & CASUALTY SEGMENT

AXA's Property & Casualty Segment offers a range of personal and commercial insurance products. The Property & Casualty Segment accounted for approximately 15.9 billion, or 21% of AXA's consolidated gross premiums and financial services revenues for the year ended December 31, 2002 and 2001.

The table below summarizes AXA's consolidated gross premiums and financial services revenues (after intersegment eliminations) and claims reserves for the Property & Casualty Segment for the periods and as at the dates indicated.

|(in euro millions, except
      percentages) |                                                       |      |                             |  |        |  |        |  |                     
|-------------------------------------------- | ----------------------------------------------------- | ---- | --------------------------- |  | ------ |  | ------ |  | --------------------
|                                             |                                                       |      |                             |  |        |  |        |  |                     
|Property &
      CasualtySegment             |                                                       |      |                             |  |        |  |        | 
|                                             | Gross premiums andfinancial
        services revenues |      |                             | 
|                                             | Years endedDecember
        31,                       |      | Gross insurance liabilities | 
|                                             |                                                       | 2002 |                             |  | 2001   |  | 2000   |  | at December 31, 2002
|                                             |                                                       |      |                             |  |        |  |        |  |                     
|France                                       | 27%                                                   |      | 4,383                       |  | 4,171  |  | 4,001  |  | 8,859               
|Germany                                      | 18%                                                   |      | 2,843                       |  | 3,142  |  | 3,085  |  | 5,966               
|United Kingdom                               | 17%                                                   |      | 2,749                       |  | 2,480  |  | 2,683  |  | 4,452               
|Belgium                                      | 9%                                                    |      | 1,395                       |  | 1,323  |  | 1,297  |  | 4,967               
|Others                                       | 29%                                                   |      | 4,577                       |  | 4,780  |  | 4,513  |  | 7,367               
|                                             |                                                       |      |                             |  |        |  |        |  |                     
|TOTAL                                        | 100%                                                  |      | 15,948                      |  | 15,896 |  | 15,579 |  | 31,612              
|                                             |                                                       |      |                             |  |        |  |        |  |                     
|Represented by:                              |                                                       |      |                             |  |        |  |        |  |                     
|Gross
      written premiums                 | -                                                     |      | 15,936                      |  | 15,894 |  | 15,579 |  | -                   
|Other
      revenues                         | -                                                     |      | 12                          |  | 2      |  | -      |  | -                   
|                                             |                                                       |      |                             |  |        |  |        |  |                     

For the ten-year loss development of the property & casualty claims reserves, see "- Property and Casualty Claims Reserves" included elsewhere in this section of the annual report.

Market

In 2002, the property & casualty market continued to grow with increases in premium rates that allowed companies to partly compensate (i) the unfavorable effects of further claims deterioration from numerous and significant climatic events, such as floods, mainly in France, Central Europe, the United Kingdom and Italy, and (ii) the increased cost of reinsurance following the impact of the U.S. terrorist attacks on September 11, 2001.

In each of its principal markets, AXA operates through
  well-established property & casualty insurance companies. AXA's principal
  property & casualty insurance subsidiaries are set out below:

France: AXA France IARD (a result of a merger in 2002
  between AXA Assurances IARD, AXA Courtage IARD and AXA Conseil IARD) and Direct
  Assurance IARD

United Kingdom: AXA Insurance Plc

Germany: AXA Versicherung AG

Belgium: AXA Belgium SA

Commentary on the 2002 market conditions in the geographical markets in which AXA operates is provided in "Item 5 - Operating and Financial Review and Prospects - Market Conditions in Year 2002".



41

The table below presents the property & casualty markets in which AXA operates ranked by worldwide gross premiums in 2001, along with AXA's ranking (by market share).

|                                                        |                        | 
|------------------------------------------------------- | ---------------------- | 
|Based on
      worldwide gross written premiums in 2001 |                       
|                                                        | Country Statistics (a) | 
|Countries                                               | Ranking                | 
|                                                        |                        | 
|                                                        |                        | 
|Germany                                                 | 3                      | 
|United Kingdom                                          | 4                      | 
|France                                                  | 5                      | 
|Belgium                                                 | 15                     | 
|                                                        |                        | 

|(a) | Source: Swiss Re Sigma report 6/2002 "World insurance in 2001", measured in U.S. dollars.                                                                                                                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | In general based on 2001 market data for each specific country or an estimate for 2002.                                                                                                                                                                                                                                                    
|(c) | Based on 2001 gross property & casualty premiums written in Germany, AXA is ranked as follows: second in liability insurance (8.4% market share), seventh in homeowners' insurance (4.9% market share), fourth in motor (automobile) insurance (4.5% market share).                                                                        
|(d) | The UK product lines in 2001, based on gross earned premiums, were ranked as follows: fourth in personal motor (automobile) insurance (5.2% market share), fifth in homeowners/domestic property insurance (4.1% market share), fifth in commercial vehicle (4.5% market share) and third in total commercial property (8.3% market share).

Other Property & Casualty Operations

In addition to the principal markets discussed above, AXA offers personal and commercial property & casualty insurance products in the following countries: Italy, Ireland, Spain, Netherlands, Portugal, Luxembourg, Switzerland, Austria, Hungary, Canada, Morocco, Turkey, Japan, Singapore, and Hong Kong, as well as other countries in South America, the Middle East, Africa and the Asia Pacific region. The products offered in these markets are offered through various distribution channels, including brokers and direct sales force.

Competition

The nature and level of competition varies among the countries in which AXA operates. Overall, the property & casualty insurance industry in each of AXA's principal markets is highly competitive, with surplus underwriting capacity leading to low premium rates. The principal competitive factors are as follows:

- price,
- range of product lines and product quality,
- quality of service,
- distribution network,
- brand recognition,
- changes in regulations, which may affect premium rates charged or claims settlement costs paid, and
- ratings for financial strength and claims-paying ability.

In France, Germany and Belgium, markets are fragmented with hundreds of insurers competing for business. In the United Kingdom, industry-wide consolidation across the sector has affected both major insurance companies and brokers, resulting in increased concentration among the top few players in recent years.



42

Products

AXA's property & casualty insurance operations offer a broad range of products including automobile, homeowners/household, property and general liability insurance for both personal and commercial customers, the latter specifically focusing on small to medium-sized companies.

The table below presents gross written premiums and gross insurance liabilities by major product for the periods and as at the dates indicated.

|(in euro millions, except
      percentages) |      |                         |        |  |        |                    |        |  |                     
|-------------------------------------------- | ---- | ----------------------- | ------ |  | ------ | ------------------ | ------ |  | --------------------
|                                             |      |                         |        |  |        |                    |        |  |                     
|Property &
      CasualtySegment             |      |                         |        |  |        |                    |       
|                                             |      | Grosswritten premiums   |        |  |        |                    |       
|                                             |      | Years endedDecember 31, |        |  |        | Insurance reserves |       
|                                             |      | 2002                    |        |  | 2001   |                    | 2000   |  | at December 31, 2002
|                                             |      |                         |        |  |        |                    |        |  |                     
|Personal line                                |      |                         |        |  |        |                    |        |  |                     
|Motor
      (automobile)                     | 36%  |                         | 5,686  |  | 5,880  |                    | 5,939  |  | 10,577              
|Homeowners/household                         | 14%  |                         | 2,273  |  | 2,330  |                    | 2,223  |  | 2,096               
|Other                                        | 10%  |                         | 1,548  |  | 1,514  |                    | 1,135  |  | 3,145               
|Commercial line                              |      |                         |        |  |        |                    |        |  |                     
|Motor
      (automobile)                     | 8%   |                         | 1,252  |  | 1,231  |                    | 1,121  |  | 1,412               
|Property
      damage                        | 13%  |                         | 2,078  |  | 1,896  |                    | 1,695  |  | 2,244               
|Liability                                    | 7%   |                         | 1,111  |  | 1,058  |                    | 1,238  |  | 4,588               
|Other                                        | 7%   |                         | 1,179  |  | 1,162  |                    | 1,704  |  | 4,960               
|Other                                        | 5%   |                         | 808    |  | 823    |                    | 524    |  | 2,590               
|                                             |      |                         |        |  |        |                    |        |  |                     
|TOTAL                                        | 100% |                         | 15,936 |  | 15,894 |                    | 15,579 |  | 31,612              
|                                             |      |                         |        |  |        |                    |        |  |                     



43

Distribution

AXA distributes its property & casualty insurance products through a number of channels that vary from country to country. In Europe, the same distribution channels are used by both AXA's life & savings operations and property & casualty operations. The distribution channels used by AXA's property & casualty operations, based on gross written premiums for the year ended December 31, 2002 are presented below.



|                                              |                |  |                      |  |               |  |                     | 
|--------------------------------------------- | -------------- |  | -------------------- |  | ------------- |  | ------------------- | 
|Based
      on gross written premiums in 2002 |                |  |                      |  |              
|                                              | General agents |  | Intermediaries,      |  | Direct sales  |  | Other networks,     | 
|                                              |                |  | independent advisers |  | and marketing |  | including corporate | 
|                                              |                |  | & brokers            |  |               |  | partnerships and    | 
|                                              |                |  |                      |  |               |  | bank networks       | 
|                                              |                |  |                      |  |               |  |                     | 
|France                                        | 70%            |  | 25%                  |  | 4%            |  | 1%                  | 
|Germany                                       | 46%            |  | 37%                  |  | 3%            |  | 14%                 | 
|United Kingdom                                | -              |  | 63%                  |  | 19%           |  | 18%                 | 
|Belgium                                       | -              |  | 79%                  |  | 1%            |  | 20%                 | 
|                                              |                |  |                      |  |               |  |                     | 

Ceded Reinsurance

AXA's property & casualty insurance operations use
  various types of reinsurance, primarily to limit their maximum exposure to catastrophic
  events, environmental pollution risks and certain other types of risks. Certain
  insurance exposures are ceded internally to AXA Cessions (included within the
  International Insurance Segment), which organizes external reinsurance programs.
  Total gross premiums ceded by the property & casualty operations to third
  party reinsurers in 2002 was1,146
  million (2001:1,178
  million).



44

INTERNATIONAL INSURANCE SEGMENT

AXA's International Insurance Segment business is primarily conducted by AXA Corporate Solutions, which includes both reinsurance activities and large risks insurance.  With effect from November 15, 2002, the parent company changed its name back to "AXA RE" while its large risk insurance subsidiary retained its name (AXA Corporate Solutions Assurance). This change will be reflected in future publications.

The business operations of AXA Corporation Solutions are described below.

| | AXA Corporate Solutions - the reinsurance businessis focussed principally on property and catastrophe business as well as some other profitable niches. Such business is underwritten in Paris, the United Kingdom, Canada, and Singapore. In January 2003,        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                    
| |                                                                                                                                                                                                                                                                    
| | AXA Corporate Solutions - the large risk insurance businessfocuses its activity on large risk property & casualty lines insurance business for large corporate clients in Europe, as well as in the marine and aviation lines for all clients on a worldwide basis.

The International Insurance Segment accounted for5.8 billion, or 8% of AXA's consolidated gross premiums and financial services revenues for the year ended December 31, 2002 (2001:5.7 billion or 8%, respectively).

The table below summarizes AXA's consolidated gross
  premiums and financial services revenues and gross insurance liabilities for
  the International Insurance Segment, for the periods and at the dates indicated.

|(in euro millions, except
      percentages) |                                               |      |                             |  |       |  |       |  |                     
|-------------------------------------------- | --------------------------------------------- | ---- | --------------------------- |  | ----- |  | ----- |  | --------------------
|                                             |                                               |      |                             |  |       |  |       |  |                     
|INTERNATIONAL INSURANCE SEGMENT              |                                               |      |                            
|                                             | Gross premiums andfinancial services revenues |      |                             | 
|                                             | Years endedDecember 31,                       |      | Gross insurance liabilities | 
|                                             |                                               | 2002 |                             |  | 2001  |  | 2000  |  | at December 31, 2002
|                                             |                                               |      |                             |  |       |  |       |  |                     
|Insurance                                    | 31%                                           |      | 1,762                       |  | 1,698 |  | 1,097 |  | 5,473               
|Reinsurance                                  |                                               |      |                             |  |       |  |       |  |                     
|(including AXA Cessions)                     | 62%                                           |      | 3,573                       |  | 3,590 |  | 2,200 |  | 6,668               
|AXA Corporate Solutions                      | 93%                                           |      | 5,335                       |  | 5,288 |  | 3,297 |  | 12,141              
|AXA Assistance                               | 7%                                            |      | 397                         |  | 381   |  | 328   |  | 142                 
|Other international
      activities         | 1%                                            |      | 30                          |  | 9     |  | 26    |  | 1,360               
|                                             |                                               |      |                             |  |       |  |       |  |                     
|TOTAL                                        | 100%                                          |      | 5,762                       |  | 5,678 |  | 3,651 |  | 13,644              
|                                             |                                               |      |                             |  |       |  |       |  |                     
|Represented by:                              |                                               |      |                             |  |       |  |       |  |                     
|Gross written premiums                       | -                                             |      | 5,740                       |  | 5,664 |  | 3,649 |  | -                   
|Other revenues                               | -                                             |      | 22                          |  | 14    |  | 1     |  | -                   
|                                             |                                               |      |                             |  |       |  |       |  |                     

For the ten-year loss development of AXA's international insurance claims reserves, see "Property and Casualty Claims Reserves" included elsewhere in this section of the annual report.



45

Market and competition

In the worldwidereinsurancemarket in 2002, operating conditions were increasingly challenging as a result of (i) the exceptional claims experience in 2001 resulting from the U.S. terrorist attacks on September 11, 2001 and (ii) the continued deterioration in world financial markets. As a result, many competitors took action in order to increase profitability and solvency by increasing premiums, increasing the amount of the deductible paid by the cedant, and tightening of underwriting policies. These conditions are expected to persist in 2003.

In 2002, thelarge-risks insurancemarket has experienced a similar effect to that of the reinsurance market, with a number of large claims (specifically in property and aviation business), and the unfavourable performance of financial markets. As in 2001, 2002 was characterised by (i) an increasing demand for risk management and financial analysis, (ii) a demand for risk transfer products, and (iii) a global concentration of suppliers (predominantly global insurance brokers and international insurance groups). The market conditions are expected to tighten significantly in 2003, especially in the general liability product area where legal instability remains high in some countries.

Following the events of September 11, 2001, there has been greater uncertainty in the worldwide insurance and reinsurance markets in respect of commercial line property and casualty insurance coverage. In particular, the extent to which future acts of terrorism will or will not be covered. Many reinsurers have stated that they do no intend to provide coverage for such risks in future periods.

Products

AXA Corporate Solutions - reinsurance activity (AXA RE).These operations have a geographically diverse reinsurance portfolio, including the following classes of business: property damage (including catastrophe exposure), third party liability, marine, financial risk and life insurance. The reinsurance operations are oriented towards non-proportional rather than proportional reinsurance treaties especially for catastrophe risks, as well as new sophisticated products (such as weather derivatives).

AXA Corporate Solutions - insurance activity.These operations underwrite large insurance risks for large national and international corporations.  The products cover property & casualty, third party liability; marine, aviation and transport; construction risk; financial risk; and directors and officers liability. AXA Corporate Solutions Insurance also offers loss-prevention and risk management services.

AXA Cessions.AXA's property & casualty subsidiaries reinsure a large portion of their business internally through AXA Cessions. AXA Cessions coordinates retrocession with external reinsurers to reduce the loss exposures of each subsidiary and of AXA as a whole.

AXA Assistance.AXA provides assistance services primarily through AXA Assistance. The services include medical aid for travelers and automobile-related road assistance.  The clients include insurance companies, credit card companies, tour operators and automobile manufacturers.



46

The table below presents the International Insurance Segment's gross written premiums and gross insurance liabilities by major product for the periods and as at the dates indicated.

|(in euro millions, except
      percentages) |                                 |      |                 |  |       |  |       |  |                     
|-------------------------------------------- | ------------------------------- | ---- | --------------- |  | ----- |  | ----- |  | --------------------
|                                             |                                 |      |                 |  |       |  |       |  |                     
|International Insurance                      |                                 |      |                 |  |       |  |       |  |                     
|                                             | Grosswritten
        premiums   |      | Gross Insurance | 
|                                             | Years endedDecember
        31, |      | liabilities     | 
|                                             |                                 | 2002 |                 |  | 2001  |  | 2000  |  | at December 31, 2002
|                                             |                                 |      |                 |  |       |  |       |  |                     
|Property
      damage                        | 50%                             |      | 2,852           |  | 2,945 |  | 1,589 |  | 5,025               
|Automobile,
      marine,                    |                                 |      |                 |  |       |  |       |  |                     
|aviation                                     | 22%                             |      | 1,235           |  | 836   |  | 738   |  | 4,095               
|Casualty
      / civil liability             | 12%                             |      | 689             |  | 470   |  | 473   |  | 3,272               
|Assistance                                   | 7%                              |      | 397             |  | 381   |  | 328   |  | 142                 
|Other                                        | 10%                             |      | 566             |  | 1,032 |  | 522   |  | 1,109               
|                                             |                                 |      |                 |  |       |  |       |  |                     
|TOTAL                                        | 100%                            |      | 5,740           |  | 5,664 |  | 3,651 |  | 13,644              
|                                             |                                 |      |                 |  |       |  |       |  |                     

Distribution

AXA Corporate Solutions distributes its products principally through insurance and reinsurance brokers.

Ceded Reinsurance

AXA Corporate Solutions reviews its exposures to ensure that the risks underwritten are diversified geographically and by line of business in order to avoid risk of concentration. Exposure to single events is limited through reinsurance outwards to third-party reinsurers (retrocession contracts). In 2002, AXA Corporate Solutions and its subsidiaries ceded1,712 million of written premiums (2001:1,600 million) to third-party reinsurers (through retrocession agreements).

ASSET MANAGEMENT SEGMENT

AXA's principal asset management companies are Alliance Capital Management ("Alliance Capital") and AXA Investment Managers. The asset management companies manage assets on behalf of retail investors, private clients and institutional clients as well as on behalf of companies affiliated with AXA.

Asset management is important to AXA, from both a strategic and profitability perspective. The development of asset management activities is a key part of AXA's strategy, which seeks to capitalize on existing strengths and to expand the client base. This strategy is founded on the belief that its asset management expertise will enable AXA to benefit in the future from the expected growth in savings-related products in the markets in which it operates. The Asset Management Segment accounted for3.4 billion, or 5% of AXA's consolidated gross premiums and financial services revenues for the year ended December 31, 2002 (2001:3.7 billion or 5%, respectively).

Asset management conditions were difficult in 2002 as in 2001, given that the stock markets around the world continued to suffer significant losses, reducing the market value of average assets under management. The depressed markets resulted in a general move away from more volatile equity investments towards more stable investment options. The decrease in average value of assets under management and the change in product mix negatively impacted the fees collected by asset management companies.

AXA has asset management specialists in each of its major markets: Western Europe, the United States and the Asia / Pacific region.



47

The table below presents the total assets managed by AXA's Asset Management Segment, including those assets managed on behalf of third parties, and the related fees earned by AXA's Asset Management Segment on those assets as at the dates and for the periods indicated.

|(in euro millions)                                                 |         |  |         |  |         | 
|------------------------------------------------------------------ | ------- |  | ------- |  | ------- | 
|                                                                   |         |  |         |  |         | 
|Assets Management
      Segment                                    | 2002    |  | 2001    |  | 2000    | 
|                                                                   |         |  |         |  |         | 
|Assets under management by AXA at
      December 31, (a)           |         |  |         |  |         | 
|Managed
      on behalf of third parties                           | 372,931 |  | 505,833 |  | 468,546 | 
|Separate
      accounts assets                                     | 58,887  |  | 80,581  |  | 83,976  | 
|Other
      invested assets                                        | 204,857 |  | 210,557 |  | 206,942 | 
|                                                                   |         |  |         |  |         | 
|TOTAL                                                              | 636,674 |  | 796,971 |  | 759,465 | 
|                                                                   |         |  |         |  |         | 
|Commissions and fees earned for the
      years ended December 31, |         |  |         |  |         | 
|Alliance
      Capital                                             | 2,903   |  | 3,347   |  | 2,743   | 
|AXA
      Investment Managers                                      | 820     |  | 696     |  | 558     | 
|National
      Mutual Fund Management (b)                          | -       |  | 57      |  | 51      | 
|                                                                   |         |  |         |  |         | 
|SUB-TOTAL                                                          | 3,724   |  | 4,100   |  | 3,352   | 
|                                                                   |         |  |         |  |         | 
|Intercompany
      eliminations                                    | (313)   |  | (370)   |  | (368)   | 
|CONTRIBUTION TO AXAs CONSOLIDATED
      GROSS PREMIUMS            |         |  |         |  |         | 
|AND FINANCIAL SERVICES REVENUES                                    | 3,411   |  | 3,730   |  | 2,984   | 
|                                                                   |         |  |         |  |         | 

|(a) | Based on estimated fair value at the dates indicated.                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | As of January 1, 2002, the financial information in respect of National Mutual Funds Management is presented within the Australian/New Zealand life & savings operations.

The asset management industry remains highly fragmented, with no single competitor, or any small group of competitors, dominating the worldwide market.  AXA's asset management operations are subject to substantial competition in all aspects of its business due, in part, to the relatively low barriers to entry. The competitive factors include the range of investment products offered, the investment performance of such products and the quality of services provided to clients.

Alliance Capital

Alliance Capital is a 56% owned subsidiary of AXA Financial and is a leading global investment management firm in the United States. Alliance Capital provides diversified investment management and related services to individual investors, private clients and to a variety of institutional clients, including Equitable Life (one of Alliance Capital's largest institutional clients) as well as unaffiliated entities such as corporate and public employee pension funds, endowment funds, and U.S. and foreign governments.

Alliance Capital provides diversified asset management and related services globally to a broad range of clients including:

- management of separate account, hedge funds and other investment vehicles for private clients (such as, high net worth individuals, trusts and estates, charitable foundations);
- management of mutual funds sponsored by Alliance Capital, its subsidiaries and affiliates for individual investors;
- management of investments on behalf of institutional investors; and
- investment research and advisory services for institutional investors.



48

In 2000, Alliance Capital acquired the business of SCB, Inc. (formerly known as Sanford C. Bernstein Inc.), which complemented Alliance Capital's growth equity investment orientation with a highly regarded value equity investment capability, institutional research capabilities and a strong private client business portfolio. In connection with the acquisition, former Berstein shareholders received 40.8 million private Alliance Capital units and AXA Financial agreed to provide liquidity to these shareholders after a two-year lock-out period which ended October 2002. AXA Financial acquired 8.16 million Alliance units from the former Bernstein shareholders' in 2002. The outstanding 32.6 million Alliance Units may be sold to AXA Financial at the prevailing market price over the remaining seven years ending in 2009. Generally, not more than 20% of the original Alliance units issued to the former Bernstein shareholders may be put to AXA Financial in any one annual period.

As at December 31, 2002, Alliance Capital had369 billion of assets under management, including322 billion of assets managed on behalf of third party clients (2001:517 billion and452 billion, respectively).

AXA Investment Managers ("AXA IM")

AXA IM's clients include both (i) institutional investors and (ii) individual investors. AXA IM provides diversified asset management and related services globally through (i) mutual funds managed by AXA IM, which are distributed through AXA's distribution networks and external distributors, and (ii) AXA's insurance subsidiaries in respect of their insurance-related invested assets and separate account (unit-linked) assets. AXA IM is one of the largest asset management companies based in Europe.

As at December 31, 2002, AXA IM had268 billion of assets under management, including51 billion of assets managed on behalf of third party clients (2001:277 billion and48 billion, respectively).

During 2002, AXA IM and AXA Rosenberg, a subsidiary of AXA IM specializing in the management of equities, merged their Asian offices. In addition, in 2001, AXA exercised its option to acquire an additional ownership interest in AXA Rosenberg for approximately U.S.$30 million, increasing its equity interest from approximately 47% to approximately 75%. As part of this agreement, and due to AXA Rosenberg's operating performance during 2002, AXA made an additional payment of approximately U.S.$25 million.  This transaction is also subject to an earn-out agreement whereby additional consideration may be paid up until the end of 2005 that is contingent upon the future operating performance of AXA Rosenberg.

OTHER FINANCIAL SERVICES SEGMENT

The operations in the Other Financial Services Segment are conducted primarily in Belgium and in France. For the year ended December 31, 2002, the Other Financial Services Segment accounted for1.0 billion, or 1% of AXA's consolidated gross premiums and financial services revenues (2001:1.1 billion or 2%, respectively).

The segment operations principally include:

AXA Bank Belgium.A subsidiary of AXA Belgium that offers a comprehensive range of financial services to individuals and small businesses. It has a network of independent bank agents that support the sale of products offered by AXA Belgium and AXA IM.

AXA Banque and AXA Crédit.Based in Paris,AXA Banquedelivers banking services dedicated to AXA. Its main activities include bank account services to high net worth individual policyholders and to general agents of AXA France Assurance. In 2002, AXA purchased Banque Directe from BNP Paribas. Banque Directe is a provider of online banking services and will complement AXA's existing financial offering in France. It will provide a well-established banking



49

platform to AXA's existing clients and distribution networks, as well as increasing AXA's expertise in direct distribution.AXA Créditprovides short-term loans to customers of AXA's French insurance operations.

INSURANCE-RELATED INVESTED ASSETS

The assets supporting AXA's insurance operations (included within the three segments: the Life & Savings Segment, the Property & Casualty Segment and the International Insurance Segment) consist of a diversified portfolio of investments. These assets are managed principally by AXA's asset management operations (Alliance Capital and AXA IM) and consist of (i) general account assets whereby the insurer generally bears the investment risk and reward, and (ii) separate account (unit-linked) assets, whereby the investment risk and reward is principally transferred to the policy-holder.

The discussion below concerns the general account investment assets of AXA's insurance operations, which are referred to in this annual report as "insurance-related invested assets." The general account liabilities of AXA's Life & Savings operations can be divided into two primary types, participating and non-participating. For participating products, the investment results of the underlying assets determine, to a large extent, the return to the policyholder that is either reflected as an increase in future policy benefits or paid out in cash in the year the bonus is credited to the policyholder. The insurer's profits on such business are earned from investment management, mortality and other charges. For non-participating or interest-sensitive products, the insurer's profits are earned from a positive spread between the investment return and the crediting or reserve interest rate.

Although all the general account assets of each insurer support all of that insurer's liabilities, the insurers have developed asset-liability management techniques with separate investment objectives for specific classes of product liabilities. As part of this approach, insurers develop investment guidelines for each product line that form the basis for investment strategies to manage such product line's investment return and liquidity requirements, consistent with management's overall investment objectives for the insurance related investment assets. Investments frequently meet the investment objectives of more than one class of product liabilities whereby each class of business may be allocated on a pro rata basis across the investment portfolio.

AXA routinely monitors and evaluates the status of its investments in light of current and anticipated future economic conditions and trends, and other factors. The strategic allocation of assets is generally determined through asset-liability analyses for both life & savings and property & casualty businesses. The strategy may differ across the geographical territories and the different lines of businesses depending on the existing investment mix, the availability of alternative investment vehicles and the underlying nature and duration of the in-force insurance contracts. Further information on how AXA manages investment risk is provided in "Item 11 - Quantitative and Qualitative Disclosures About Market Risk".

At December 31, 2002, the net carrying value of the insurance-related invested assets supporting the general account life & savings operations, including those specific assets allocated to the UK with-profit business, primarily consisted of fixed maturity investments and equity investments (excluding equity holdings in fixed maturity based mutual funds) of 63% and 16%, respectively (2001: 58% and 21%, respectively). At such date, the insurance-related invested assets supporting the property & casualty operations primarily consisted of fixed maturity investments and equity investments (excluding equity holdings in fixed maturity based mutual funds) of 49% and 23%, respectively (2001: 51% and 24%, respectively).



50

The following table presents AXA's consolidated insurance-related invested assets by insurance segment at December 31, 2002.

(in euro mllions, except percentages)

|                                    |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|----------------------------------- | -------------- |  | -------------------- |  | ----------------------- |  | ------ |  | ------------ |  | ------ |  | ------------ |  | ------- |  | ------------ |  | ------ | 
|Insurance - related invested assets |                |  |                      |  |                        
|                                    |                |  | At December 31, 2002 |  |                         |  |        | 
|                                    | Life & Savings |  | Property & Casualty  |  | International Insurance |  | Total  |  | % of total   | 
|                                    | Net carrying   |  | Market               |  | Net carrying            |  | Market |  | Net carrying |  | Market |  | Net carrying |  | Market  |  | Net carrying |  | Market | 
|                                    | value (a)      |  | value                |  | value (a)               |  | value  |  | value (a)    |  | value  |  | value (a)    |  | value   |  | value (a)    |  | value  | 
|                                    |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|Fixed maturities                    |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|(a) Held to maturity and            |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|available
      for sale            | 111,066        |  | 118,525              |  | 14,028                  |  | 14,988 |  | 5,204        |  | 5,454  |  | 130,298      |  | 138,967 |  | 63%          |  | 66%    | 
|- French government                 | 21,694         |  | 24,108               |  | 2,136                   |  | 2,420  |  | 410          |  | 439    |  | 24,240       |  | 26,967  |  | 12%          |  | 13%    | 
|- Foreign government                | 29,394         |  | 31,039               |  | 5,842                   |  | 6,247  |  | 1,891        |  | 1,965  |  | 37,127       |  | 39,251  |  | 18%          |  | 18%    | 
|- Local governments                 | 3,557          |  | 3,811                |  | 918                     |  | 972    |  | 499          |  | 536    |  | 4,974        |  | 5,319   |  | 2%           |  | 3%     | 
|- Government controlled             |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |       
|corporations                        | 9,059          |  | 9,597                |  | 1,644                   |  | 1,712  |  | 138          |  | 144    |  | 10,841       |  | 11,453  |  | 5%           |  | 5%     | 
|- Non-government                    |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|controlled corporation              | 40,279         |  | 42,440               |  | 2,942                   |  | 3,062  |  | 1,992        |  | 2,083  |  | 45,213       |  | 47,585  |  | 22%          |  | 22%    | 
|- Mortgage-backed                   |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|securities                          | 5,263          |  | 5,545                |  | 452                     |  | 477    |  | 138          |  | 143    |  | 5,854        |  | 6,166   |  | 3%           |  | 3%     | 
|- Other                             | 1,820          |  | 1,985                |  | 93                      |  | 98     |  | 137          |  | 144    |  | 2,049        |  | 2,226   |  | 1%           |  | 1%     | 
|(b) Allocated to UK                 |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|"With-profit"                       |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|business-trading
      (b)          | 15,362         |  | 15,362               |  | -                       |  | -      |  | -            |  | -      |  | 15,362       |  | 15,362  |  | 7%           |  | 7%     | 
|(c) Trading securities (c)          | 2,063          |  | 2,063                |  | -                       |  | -      |  | 1            |  | 1      |  | 2,065        |  | 2,065   |  | 1%           |  | 1%     | 
|                                    |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|Total fixed maturities              | 128,491        |  | 135,950              |  | 14,028                  |  | 14,988 |  | 5,206        |  | 5,456  |  | 147,725      |  | 156,393 |  | 71%          |  | 74%    | 
|                                    |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|Equity investments,                 |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|including holdings                  |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|in mutual funds                     |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|Available-for-sale                  | 35,351         |  | 31,683               |  | 9,353                   |  | 7,908  |  | 1,127        |  | 985    |  | 45,831       |  | 40,576  |  | 22%          |  | 19%    | 
|Allocated to UK                     |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|"With-profit"                       |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|business-trading(b)                 | 10,342         |  | 10,342               |  | -                       |  | -      |  | -            |  | -      |  | 10,342       |  | 10,342  |  | 5%           |  | 5%     | 
|Trading securities (c)              | 1,130          |  | 1,130                |  | -                       |  | -      |  | -            |  | -      |  | 1,130        |  | 1,130   |  | 1%           |  | 1%     | 
|                                    |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|Total equity investments,           |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|including holdings                  |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|in mutual funds                     | 46,822         |  | 43,155               |  | 9,353                   |  | 7,908  |  | 1,127        |  | 985    |  | 57,303       |  | 52,048  |  | 27%          |  | 24%    | 
|Investment in                       |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|participating interests             | 1,353          |  | 1,668                |  | 2,004                   |  | 2,085  |  | 427          |  | 413    |  | 3,784        |  | 4,166   |  | 2%           |  | 2%     | 
|                                    |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 
|TOTAL (b) (d)                       | 176,666        |  | 180,773              |  | 25,386                  |  | 24,981 |  | 6,760        |  | 6,854  |  | 208,812      |  | 212,608 |  | 100%         |  | 100%   | 
|                                    |                |  |                      |  |                         |  |        |  |              |  |        |  |              |  |         |  |              |  |        | 

|(a) | Amounts are net of valuation allowances. For details on valuation allowances see note 6 to AXA's consolidated financial statements.                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | These amounts exclude separate account (unit-linked) assets and investments in affiliated companies accounted for under the equity method. Assets allocated to UK with-profit business are carried at estimated fair value in the consolidated balance sheet of AXA.
|(c) | These amounts exclude separate account (unit-linked) assets and investments in affiliated companies accounted for under the equity method.                                                                                                                          
|(d) | Refer to notes 2 and 6 to AXA's consolidated financial statements included in this annual report that set out the investment valuation methodology.                                                                                                                 



51

For additional information on the type of assets in which AXA invests and the related net investment results for each of the three years ended December 31, 2002, see notes 6, 7, 8 and 20 to the consolidated financial statements included elsewhere in this annual report.

At December 31, 2002 and based on net consolidated carrying
  value of fixed investment and equity securities, excluding participating interests,
  AXA's life & savings and property & casualty insurance operations held
  investments in a single issuer, Bayerische Hypo und Vereinsbank AG of nearly2.6 billion,
  principally in the German operations, representing more than 10% of AXA's total
  shareholders' equity. The investments consisted of equity securities, fixed
  maturity corporate bonds, mortgage Pfandbriefe and public Pfandbriefe of approximately0.1 billion,0.4 billion,
  1.3 billion and0.8
  billion, respectively. Mortgage Pfandbriefe and public Pfandbriefe are secured
  by mortgage loans and lendings to the public sector, respectively. AXA believes
  that the real economic exposure to Bayerische Hypo und Vereinsbank is limited
  to the equity and unsecured fixed maturity corporate bond investments of approximately0.1 billion
  and0.4 billion,
  respectively.

AXA did not have any other equity and/or fixed maturity investment in any one issuer that was in aggregate 10% or more of AXA's total shareholders' equity, or2,371 million.

AXA's fixed maturity and equity investments, including those securities treated as trading securities, are predominantly publicly traded. In respect of these investments, 86% of the fixed maturity investments and 90% of the equity investments are held by AXA's principal insurance operations in France, the United States, the United Kingdom, Germany, Belgium and Japan. More specifically, the insurance-related invested assets backing the insurance liabilities in these operations were predominantly holdings in domestic investments, or in the local currency of the liabilities. In respect of AXA's consolidated holdings in fixed maturity and equity securities, the breakdown of these investments by industry sector were as follows:

|                                 |      |                 |      | 
|-------------------------------- | ---- | --------------- | ---- | 
|Industry Sector
      Beakdown   |      | At December 31, |      | 
|                                 | 2002 |                 | 2001 | 
|                                 |      |                 |      | 
|Financial Services               | 20%  |                 | 24%  | 
|Manufacturing / Pharmaceuticals  | 7%   |                 | 5%   | 
|Utilities                        | 4%   |                 | 4%   | 
|Technology & Telecommunications  | 4%   |                 | 5%   | 
|Government institutions          | 35%  |                 | 32%  | 
|Other direct holdings            | 21%  |                 | 23%  | 
|Investment in mutual
      funds | 9%   |                 | 7%   | 
|                                 |      |                 |      | 
|Total                            | 100% |                 | 100% | 
|                                 |      |                 |      | 

Overall, the fixed maturity and equity investments together with real estate, mortgages and loans are concentrated in the local markets in which AXA's principal subsidiaries operate.

Derivatives.AXA uses derivative instruments to minimize adverse fluctuations in interest rates, foreign exchange rates and equity prices. The basis for which AXA manages these risks, the sensitivities associated with managing these types of risks, and the potential impact on the AXA consolidated financial results are set out in further detail in "Item 11 - Quantitative and Qualitative Disclosures About Market Risk" and in note 25 to the consolidated financial statements included elsewhere in this annual report.

Net investment return on insurance-related assets.The net investment return on insurance-related assets by major operating entity are presented within the segment information provided in "Item 5 - Operating and Financial Review and Prospects" and note 20 to AXA's consolidated financial statements.



52

PROPERTY & CASUALTY CLAIMS RESERVES

ESTABLISHMENT OF CLAIMS RESERVES

AXA is required by applicable insurance laws and regulations, and generally accepted accounting principles to establish reserves for outstanding claims (claims which have not yet been settled) and associated claims expenses that arise from its property & casualty and international insurance operations. AXA establishes its gross insurance liabilities, that is, its claims reserves, by product, type of insurance coverage and year, and charges them to income as incurred. Claims reserves (also referred to as "loss reserves") fall into two categories namely:

- Reserves for reported claims and claims expenses.These reserves are for outstanding claims which have not yet been settled and are based on undiscounted estimates of the future claims payments that will be made in respect of the reported claims, including the expenses relating to the settlement of such claims; and
- Reserves for incurred but not yet reported ("IBNR") claims and claims expenses.IBNR reserves are established on an undiscounted basis, to recognize the estimated cost of losses that have occurred but have not yet been notified to AXA. These reserves, like the reserves for reported claims and claims expenses, are established to recognize the estimated costs, including the expenses associated with claims settlement, necessary to bring claims to final settlement.

The process of estimating the original gross claims reserve is based on information available at the time the reserve was originally established. However, claims reserves are subject to change due to the number of variables that affect the ultimate cost of claims, such as:

- development in claims (frequency, severity and pattern of claims) between the amount estimated and actual experience;
- changes arising from the time lag between the occurrence of the insured event, notification of the claim (from the insured party, a third party or a ceding company) and the final settlement (payment) of the claim, primarily attributable to long-tail casualty claims which may take several years to settle due to size and nature of claim, and the occurrence of large natural catastrophes late in the financial year for which limited information may be available at year end;
- judicial trends;
- regulatory changes; and
- inflation and foreign currency fluctuations.

As a result, actual losses may deviate from the original gross reserves established. Consequently, the reserve may be re-estimated on the base of information available at that time. Any adjustment resulting from a change in claims reserves is recorded in the financial statements of the period.

AXA continually reviews the adequacy of the established claims reserves, including emerging claims development, and actual claims experience compared to the original assumptions used to estimate initial gross claims reserve. Based on current information available in the preparation of the consolidated financial statements included elsewhere in this annual report, AXA considers that these provisions are sufficient.



53

With respect to AXA's foreign property & casualty and international insurance operations, the claims reserves are established and monitored in the local currency in which the property & casualty entity operates. The claims reserves are translated into AXA's reporting currency (Euro) using the year-end exchange rates. The effect of foreign exchange on the claims reserves is presented in note 15 "Insurance Liabilities" to the consolidated financial statements included elsewhere in this annual report.

The information within this section presents separately (i) AXA's property & casualty insurance operations including the Property & Casualty Segment operations and AXA Corporate Solutions Insurance within the International Insurance Segment, and (ii) AXA Corporate Solutions Reinsurance business in the International Insurance Segment.

As in prior years, AXA Corporate Solutions Reinsurance is presented separately because:

|(i)   | this business consists of insurance
      assumed from other insurers,                                                                                                                                
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(ii)  | the type of insurance and the nature
      of the risks and exposures covered is different compared to the direct insurance
      coverage provided by AXA's property & casualty insurance operations,
|(iii) | a portion of this business is reinsured
      to other reinsurers through retrocession programs which are monitored separately
      within the reinsurance operations, and                           
|(iv)  | the claims are accounted for on an
      underwriting year basis covering a 24-month period rather than on an accident
      year basis covering a 12-month period.                                   

Property & Casualty Reserves not included
  in Loss Development Tables AXA does not discount its reserves for claims and claims
  expenses except for disability claims for which final settlement has been agreed
  and the payments are generally fixed over a period of time. The disability claims
  reserves have not been included in the Loss Reserve Development Table, as these
  are similar to structured settlements.

AXA's French property & casualty operations underwrite construction coverage with a ten-year contract term. In accordance with the French regulations, a specific provision is added to the claims reserves based on methodology established by the French government. This reserve is in addition to each single notified claim. The construction reserves and catastrophe equalization reserves were excluded from the Loss Reserve Development table as such reserves provide no indication as to how claims have been reserved (initially) and the outcome upon settlement of such claims in future periods based on the underwriting and associated reserving methodologies adopted by AXA. In addition, certain AXA property & casualty operations are required by local regulations, in the countries in which they operate to establish equalization reserves specific to catastrophe risks, see "- Additional Factors which may affect AXA's Business - Regulation" for further details.

The property & casualty loss reserves that were excluded from the Loss Reserve Development Table represented 12.9% of total gross property & casualty insurance liabilities at December 31, 2002 (2001: 13.5%). For further information, refer to the "Reconciliation of Loss Reserves to Consolidated Financial Statements" table following the Loss Reserve Development tables.



54

Loss Reserve Development

The loss reserve development table presents the claims reserve development for calendar years 1992 through 2002, as determined in accordance with French GAAP. The top line entitled "gross reserves for unpaid claims and claims expenses" represents the original gross claims reserve liability reported at the balance sheet date for the year indicated. The upper portion of the table entitled "paid (cumulative)" represents the cumulative amount paid as of the end of each succeeding year with respect to the original gross claims reserve liability reported. The lower portion of the table entitled "Reserve re-estimated" represents the previously recorded liability as adjusted (that is, re-estimated) based on claims experience as of the end of each succeeding year. The estimate is increased or decreased, as more information becomes known in future periods relating to unsettled claims. For example, the gross claims reserve as at December 31, 1994 was originally5,595 and increased by9,872 million to15,467 million primarily due to the UAP acquisition in 1997. By the end of 2002, cumulative amounts paid was9,079 million and the original gross claims reserve had been re-estimated to be12,166 million at December 31, 2002. The "cumulative redundancy (deficiency)" for each year represents the aggregate amount by which the original gross claims reserve liability as of that year-end has changed in subsequent periods.



55

(in euro millions except percentages)

Loss Reserve Development Table: Property & Casualty including International Insurance operations (except for AXA Corporate Solutions Reinsurance)

|                                            | At December 31,
|------------------------------------------- | ---------------
|                                            | 1992           
|                                            |                
|Gross reserves for unpaid claims            |                
|and claims expenses developed initially     | 4,665          
|                                            |                
|Gross reserves for unpaid claims            |                
|and claims expenses developed in
      2002 |                
|(adjusted for subsequent acquisitions)      | 12,581         
|                                            |                
|Paid (cumulative) at:                       |                
|One year later                              | 1,326          
|Two years later                             | 1,951          
|Three years later                           | 2,376          
|Four years later                            | 2,717          
|Five years later                            | 2,920          
|Six years later                             | 7,927          
|Seven years later                           | 8,753          
|Eight years later                           | 9,032          
|Nine years later                            | 9,043          
|Ten years later                             | 8,929          
|                                            |                
|Reserve re-estimated at:                    |                
|One year later                              | 4,626          
|Two years later                             | 4,555          
|Three years later                           | 4,501          
|Four years later                            | 4,574          
|Five years later                            | 4,673          
|Six years later                             | 11,379         
|Seven years later                           | 11,487         
|Eight years later                           | 11,915         
|Nine years later                            | 11,264         
|Ten years later                             | 11,228         
|                                            |                
|Cumulative redundancy (deficiency)          |                
|from the initial gross reserves             |                
|in excess of re-estimated gross reserves:   |                
|Amount (a)                                  | 1,353          
|                                            |                
|Percent (a)                                 | 10.8%          
|                                            |                

|(a) | It is not appropriate to extrapolate future redundancies or future deficiencies based on the loss reserve development presented in the table as conditions and trends that have affected the development of the liability in prior periods may not necessarily occur in the future periods.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | AXA acquired Compagnie UAP ("UAP") on January 1, 1997. The operations of AXA and UAP were integrated in 1998. At the date of acquisition, UAP had net reserves of13.7 billion.                                                                                                            
|(c) | AXA acquired GRE in May 1999. The operations of GRE have been integrated within AXA. At time of acquisition the gross reserves totalled5.6 billion.                                                                                                                                       



56

The majority of the business of the property & casualty insurance operations is short tail and, therefore, losses develop and are paid relatively quickly. In 2002, approximately 38% of the claims reserves were paid in the year that the claim event occurred (2001: 42 %).

Note 15 "Insurance Liabilities" to the consolidated financial statements includes: (i) a reconciliation of beginning to ending gross outstanding claims reserves including claim expenses for each of the three years ended December 31, 2002 and (ii) the effect on income relating to changes in claims reserves for each of the three years ended December 31, 2002 under the caption "increase (decrease) in provision attributable to prior years".

In respect of the direct insurance business in 2002, there were no reportable changes in the claims payment patterns. There have been no significant changes in assumptions during the current year. There have been certain unfavorable developments in the United Kingdom due to reserve strengthening of262 million. See "Item 5 - Operating and Financial Review and Prospects" for further information.

There have been no material reinsurance transactions or any significant changes to existing reinsurance arrangements during the current year.



|(in euro millions, except percentages)                                                                                                            |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|------------------------------------------------------------------------------------------------------------------------------------------------- | ------- |  | ----- |  | ----- |  | -------- |  | ----- |  | ----- |  | ----- |  | ----- |  | ----- |  | -------- | -------
|                                                                                                                                                  |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|Loss Reserve Development Table: AXA
      Corporate Solutions Reinsurance                                                                         |         |  |       |  |       |  |          |  |       |  |       |  |      
|At December 31,                                                                                                                                   |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|                                                                                                                                                  | 1992    |  | 1993  |  | 1994  |  | 1995 (d) |  | 1996  |  | 1997  |  | 1998  |  | 1999  |  | 2000  |  | 2001 (e) | 2002   
|                                                                                                                                                  |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|Initial gross reserves for claims expenses in
      Balance Sheet (b)                                                                             | 941     |  | 1,184 |  | 1,496 |  | 2,451    |  | 2,646 |  | 2,880 |  | 3,060 |  | 3,396 |  | 3,455 |  | 5,868    | 4,778  
|Initial retroceded reserves                                                                                                                       | (91)    |  | (107) |  | (201) |  | (262)    |  | (196) |  | (285) |  | (416) |  | (430) |  | (393) |  | (1,652)  | (1,020)
|                                                                                                                                                  |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|Initial net claims reserves in excess
      of (less                                                                                              |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |         
|than) re-estimated net claims reserves:                                                                                                           | 850     |  | 1,077 |  | 1,295 |  | 2,189    |  | 2,450 |  | 2,595 |  | 2,644 |  | 2,966 |  | 3,062 |  | 4,216    | 3,758  
|                                                                                                                                                  |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|Paid (cumulative) at:                                                                                                                             |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|One year later                                                                                                                                    | 366     |  | 293   |  | 374   |  | 602      |  | 615   |  | 583   |  | 956   |  | 1,165 |  | 1,218 |  | 1,987    |        
|Two years later                                                                                                                                   | 529     |  | 473   |  | 566   |  | 1,008    |  | 965   |  | 1,094 |  | 1,594 |  | 1,893 |  | 1,860 |  |          |        
|Three years later                                                                                                                                 | 634     |  | 593   |  | 737   |  | 1,221    |  | 1,230 |  | 1,430 |  | 2,000 |  | 2,265 |  |       |  |          |        
|Four years later                                                                                                                                  | 720     |  | 706   |  | 849   |  | 1,410    |  | 1,427 |  | 1,685 |  | 2,232 |  |       |  |       |  |          |        
|Five years later                                                                                                                                  | 806     |  | 784   |  | 935   |  | 1,548    |  | 1,586 |  | 1,815 |  |       |  |       |  |       |  |          |        
|Six years later                                                                                                                                   | 862     |  | 851   |  | 1,037 |  | 1,677    |  | 1,689 |  |       |  |       |  |       |  |       |  |          |        
|Seven years later                                                                                                                                 | 915     |  | 932   |  | 1,106 |  | 1,759    |  |       |  |       |  |       |  |       |  |       |  |          |        
|Eight years later                                                                                                                                 | 982     |  | 991   |  | 1,156 |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|Nine years later                                                                                                                                  | 1,030   |  | 1,032 |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|Ten years later                                                                                                                                   | 1,066   |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|                                                                                                                                                  |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|Reserve re-estimated at:                                                                                                                          |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|One year later                                                                                                                                    | 1,172   |  | 1,368 |  | 1,558 |  | 2,811    |  | 2,970 |  | 2,945 |  | 3,743 |  | 3,969 |  | 4,199 |  | 5,922    |        
|Two years later                                                                                                                                   | 1,179   |  | 1,326 |  | 1,549 |  | 2,917    |  | 2,829 |  | 3,159 |  | 3,817 |  | 4,105 |  | 4,061 |  |          |        
|Three years later                                                                                                                                 | 1,210   |  | 1,329 |  | 1,675 |  | 2,774    |  | 2,891 |  | 3,168 |  | 3,772 |  | 3,955 |  |       |  |          |        
|Four years later                                                                                                                                  | 1,222   |  | 1,428 |  | 1,643 |  | 2,818    |  | 2,844 |  | 3,045 |  | 3,643 |  |       |  |       |  |          |        
|Five years later                                                                                                                                  | 1,374   |  | 1,403 |  | 1,653 |  | 2,755    |  | 2,754 |  | 2,941 |  |       |  |       |  |       |  |          |        
|Six years later                                                                                                                                   | 1,348   |  | 1,413 |  | 1,681 |  | 2,678    |  | 2,612 |  |       |  |       |  |       |  |       |  |          |        
|Seven years later                                                                                                                                 | 1,366   |  | 1,473 |  | 1,622 |  | 2,558    |  |       |  |       |  |       |  |       |  |       |  |          |        
|Eight years later                                                                                                                                 | 1,444   |  | 1,422 |  | 1,552 |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|Nine years later                                                                                                                                  | 1,399   |  | 1,360 |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|Ten years later                                                                                                                                   | 1,344   |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|                                                                                                                                                  |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|Cumulative redundancy (deficiency) from the initial
      gross claims reserves in excess of (less than) re-estimated gross claims
      reserves | (403)   |  | (176) |  | (56)  |  | (107)    |  | 34    |  | (61)  |  | (583) |  | (559) |  | (606) |  | (54)     |        
|                                                                                                                                                  |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|Re-estimated retroceded reserves                                                                                                                  | 166     |  | 114   |  | 133   |  | 243      |  | 245   |  | 352   |  | 513   |  | 444   |  | 425   |  | 1,368    |        
|                                                                                                                                                  |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|Premium adjustment (c)                                                                                                                            | 108     |  | 253   |  | 246   |  | 496      |  | 528   |  | 584   |  | 623   |  | 874   |  | 1,084 |  | 1,085    |        
|                                                                                                                                                  |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|Re-estimated net claims reserves:                                                                                                                 | 1,070   |  | 993   |  | 1,173 |  | 1,819    |  | 1,839 |  | 2,005 |  | 2,507 |  | 2,637 |  | 2,552 |  | 3,469    |        
|                                                                                                                                                  |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|Initial net claims reserves in excess of (less
      than) re-estimated net claims reserves:                                                      |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|Amount (a)                                                                                                                                        | (220)   |  | 84    |  | 122   |  | 370      |  | 611   |  | 590   |  | 137   |  | 329   |  | 510   |  | 747      | na     
|                                                                                                                                                  |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        
|Percent of original net reserve (a)                                                                                                               | (25.9%) |  | 7.8%  |  | 9.4%  |  | 16.9%    |  | 24.9% |  | 22.7% |  | 5.0%  |  | 11.1% |  | 16.7% |  | 17.7%    | na     
|                                                                                                                                                  |         |  |       |  |       |  |          |  |       |  |       |  |       |  |       |  |       |  |          |        

|(a) | It is not appropriate to extrapolate future redundancies or future deficiencies based on the loss reserve development presented in the table as conditions and trends that have affected the development of the liability in prior periods may not necessarily occur in the future periods.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | The loss reserve development table is presented on an underwriting year basis for AXA Corporate Solution Reinsurance's business. Accordingly reserves re-estimated and the excess of re-estimated reserves in excess of the original reserves include reserves for losses occurring up to twelve months subsequent to the original year-end. For example, if an underwriting year reinsurance contract term was from January 1 to December 31, 1998 it may cover underlying policies with terms beginning both on January 1, 1998 and December 31, 1998. Losses incurred on underlying policies beginning on January 1, 1998 could occur as early as January 1, 1998 while losses incurred on underlying policies beginning on December 31, 1998 could occur as late as December 31, 1999.
|(c) | Represents premium earned subsequent to the accounting year end and premium reinstatements / experience-rated premiums received and accrued from the ceding insurers as assumed losses were incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|(d) | Includes the claims reserves of Abeille Re acquired in 1995.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|(e) | In 2001, the claims reserves of AXA Corporate Solutions Reinsurance were adversely affected by the September 11th attacks.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                



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Reconciliation of Loss Reserves Developed to Consolidated Financial Statements

The following table reconciles the gross insurance liabilities, that is, the gross claims reserves including claim handling expenses, in the Loss Development Tables presented above to that presented in the AXA's consolidated financial statements in accordance with French GAAP as at the dates indicated (refer to note 15 "Insurance Liabilities" to the consolidated financial statements included elsewhere in this annual report).

|(in euro millions)                                                      |        |  |        | 
|----------------------------------------------------------------------- | ------ |  | ------ | 
|                                                                        |        |  |        | 
|At December 31,                                                         |        |  |        | 
|                                                                        | 2002   |  | 2001   | 
|                                                                        |        |  |        | 
|Total gross claims reserves
      developed:                            |        |  |        | 
|Property & Casualty (including
      AXA Corporate Solutions Insurance) | 28,465 |  | 28,636 | 
|AXA Corporate Solutions Reinsurance                                     | 4,778  |  | 5,868  | 
|Total gross claims and other
      reserves developed                   | 33,243 |  | 34,504 | 
|Gross claims and other reserves
      not developed:                    |        |  |        | 
|Catastrophe equalization reserves                                       | 327    |  | 359    | 
|Other reserves (a)                                                      | 4,604  |  | 5,036  | 
|Total gross claims and other
      reserves excluding Life & Savings    | 38,175 |  | 39,899 | 
|Claims reserves for Life &
      Savings Segment                        | 7,556  |  | 9,029  | 
|                                                                        |        |  |        | 
|Total gross claims and other
      reserves                             | 45,731 |  | 48,927 | 
|                                                                        |        |  |        | 
|(a) Represents
      disability claims and construction reserves.       |        |  |        | 

Environmental, Asbestos and Other Exposures

Environmental, asbestos and other related exposures are not material to AXA. Further details are provided in note 15 "Insurance Liabilities" to the consolidated financial statements included elsewhere in this annual report.



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ADDITIONAL FACTORS WHICH MAY AFFECT AXAS BUSINESS

For information relating to certain additional matters that may effect AXA's business, see "Item 3 - Key Information - Risk factors" and "Item 8 - Legal Proceedings" included elsewhere in this annual report.

REGULATION

AXA's principal operations are located in Western Europe, North America and the Asia-Pacific region, and to a lesser extent, in Africa, South America and the Middle East. In these jurisdictions, AXA is generally subject to comprehensive regulation and supervision, particularly with respect to its insurance and investment management operations.

Insurance Operations

While the extent and nature of regulation varies from country to country, most jurisdictions in which AXA's insurance subsidiaries operate have laws and regulations governing standards of solvency, levels of reserves, permitted types and concentrations of investments, business conduct to be maintained by insurance companies as well as agent licensing, approval of policy forms and, for certain lines of insurance, approval or filing of rates. In certain jurisdictions, regulations limit sales commissions and certain other marketing expenses that may be incurred by the insurer. In general, insurers are required to file detailed annual financial statements with their supervisory agencies in each of the jurisdictions in which they do business. Such agencies may conduct regular examinations of the insurers' operations and accounts and make requests for particular information from the insurer. Certain jurisdictions also require registration and periodic reporting by holding companies that control a licensed insurer. This holding company legislation typically requires periodic disclosure concerning the corporation that controls the licensed insurer and other affiliated companies, including prior approval of transactions between the insurer and other affiliates such as inter-corporate transfers of assets and payment of dividends by the controlled insurer. In general, these regulatory schemes are designed to protect the interests of policyholders rather than security holders. For further information refer to note 29 to the consolidated financial statements included as Item 18 in this annual report.

Europe

The regulatory systems governing insurers in France, Germany, UK, Belgium and other European jurisdictions where AXA does business are comprehensive and generally are designed to protect the interests of policyholders rather than those of security holders. In Europe, AXA operates in most major markets through free-standing subsidiaries which are subject to a regulatory scheme based on the European Union (Ô'EU'') insurance directives on life insurance and insurance other than life insurance. These directives were implemented in France, the United Kingdom, Germany and certain other jurisdictions through legislation that became effective in July 1994 and are founded on the "home country control" principle according to which the ongoing regulation of insurance companies, including their non-home insurance operations (whether direct or through branches), is the responsibility of the home country insurance regulatory authority. The home country insurance regulator monitors compliance with applicable regulations including regulations governing solvency, actuarial reserves and investment of assets. Selling activities of non-home country insurance operations, however, are generally regulated by the regulator in the country in which the sale of the insurance product takes place. As a result of the implementation of these directives, an insurance company that has been licensed to conduct insurance business in one jurisdiction of the EU may do business directly or through branches in all other jurisdictions of the EU without being subject to licensing requirements under the laws of the additional jurisdictions. The EU has also adopted various directives concerning solvency margin requirements for insurers and insurance groups. An EU directive dated October 27, 1998 requires insurance groups to calculate a consolidated



60

solvency margin for periods ending after December 31, 2001. This directive was transposed in French law under an ordinance dated August 29, 2001, decreed on March 14, 2002, and is applicable from 2002. Under this directive as adopted in French law, AXA must establish appropriate internal controls to ensure solvency sufficient to cover all of the Group's insurance liabilities, inform the French Insurance regulatory authorities annually of certain intra-group transactions, and calculate on a consolidated basis the capital needed to meet the respective solvency requirements of the Group's insurance subsidiaries. Similar group solvency requirements are required to be fulfilled by intermediate holding companies which own Group insurance subsidiaries in different EU jurisdictions. In addition, there are ongoing discussions in the EU and in individual EU member states concerning regulation and supervision of financial conglomerates. The EU has proposed a directive that proposes assessment of the solvency of a financial conglomerate on the group level, supervision of risk concentration and intra-group transactions, and prevention of double-leveraging of the capital of the holding or parent company, i.e. once in the holding or parent company and a second time in the subsidiary ("double gearing"). The directive was adopted in 2002 and is expected to be implemented into French law in 2005. The AXA Group is a financial conglomerate within the meaning of this directive. In addition to other applicable regulatory requirements, in France, Germany, the UK, and certain other European jurisdictions, property and casualty insurers are required to maintain equalisation reserves to protect against the impact of large claims and catastrophes. The basis on which these equalisation reserves are established is set out in the local country regulations based on pre-established formulas applicable to certain lines of business and may be capped at a maximum level.

In Germany, one of AXA's Germany subsidiaries, AXA Versicherung
  AG, has been among the German insurers subject to an investigation being conducted
  by German competition authorities which is focused on certain alleged anticompetitive
  practices among leading German "industrial" non-life issuers. This
  investigation was commenced in mid-2002 and is on-going. Based on information
  currently available to it, management is not in a position to predict with any
  certainty the outcome of this investigation, however, possible sanctions may
  include substantial fines. There have been several changes to the UK regulatory
  environment following the implementation of the FSMA and the issuance of the
  regulator's Handbook of Rules and Guidance in December 2001. At this stage,
  the most significant changes relate to the requirement to have appropriate systems
  and controls in place to manage the business. Further major changes are also
  planned in 2004 to prudential regulation, when an integrated regime for insurers,
  banks and investment managers is introduced, and in 2005 when conduct of business
  rules are introduced for non-life business. Further changes to the regulatory
  regime for UK life business are being considered, including: (i) the manner
  in which UK with-profits business is managed, sold and reported on, and (ii)
  distribution of investment products (including with-profits business).

United States

In the United States, AXA's insurance operations are subject to regulation and supervision by all the various states and territories. Within the United States, the method of regulation varies but generally has its source in statutes that delegate regulatory and supervisory powers to an insurance commissioner. While regulation varies by jurisdiction, most jurisdictions have comprehensive laws and regulations governing approval of policy forms and rates, the standards of solvency that must be met and maintained (including risk based capital measurements), the establishment of reserves, the licensing of insurers and their agents, sales practices by agents, the nature of and limitations on investments, restrictions on the size of risks which may be insured under a single policy, deposits of securities for the benefit of policyholders, methods of accounting, periodic examinations of the affairs of insurance companies, and the form and content of reports of financial condition to be filed. While the regulation of the insurance business remains principally at the state level in the United States, the adoption of the Gramm-Leach-Bliley Financial



61

Modernization Act of 1999 eliminated many of the barriers that formerly separated the banking, insurance and securities industries in the United States and also imposed certain new requirements on insurers and other financial institutions operating in the U.S., including consumer protections regarding security and confidentiality of non-public personal information (discussed below). This legislation allows the formation of diversified financial services holding companies in the U.S. that can provide a broad array of financial products and services to their customers. In addition, the legislation permits insurers and other financial services companies to acquire banks, and expands permitted banking activities to encompass the insurance business.

Several U.S states, including New York, regulate transactions between an insurer and its affiliates under insurance holding company acts. These acts contain certain reporting requirements and restrictions on provision of services and on transactions, such as asset transfers, loans and shareholder dividend payments by insurers. State insurance regulators also have the discretionary authority to limit or prohibit new issuances of business to policyholders within their jurisdiction when, in their judgment, such regulators determine that the issuing insurer is not maintaining adequate statutory surplus or capital. Life insurers in the United States are also subject to risk-based capital ("RBC") guidelines which provide a method of measuring the adjusted capital (statutory capital and surplus plus asset valuation allowance and other adjustments) that a life insurance company should have for regulatory purposes taking into account the risk characteristics of the company's investments and products. Equitable Life and AXA's other U.S. life insurance subsidiaries expect that the statutory surplus will continue to be in excess of the minimum RBC levels required to avoid regulatory action.

In January 1998 the Florida Attorney General and the Florida Department of Insurance issued subpoenas to Equitable Life, and in December 1999 the Florida Attorney General issued an additional subpoena to Equitable Life, in each case requesting, among other things, documents relating to various sales practices. Equitable Life has responded to these subpoenas. In addition, a number of states in the US, including New York, California and Florida, have enacted legislation requiring disclosure of extensive information concerning Holocaust era insurance policies sold in Europe prior to and during the Second World War. While these statutes vary and certain of them provide exemption for companies such as AXA that participate in the International Commission on Holocaust Era Insurance Claims, the ultimate sanction under certain of these statutes for failure to disclose the required information is revocation of an insurer's license to engage in the insurance business in the concerned state. Although each of AXA's U.S. insurance subsidiaries intends to comply with these laws with respect to its own activities, the ability of AXA and its European affiliates to comply may be impacted by various factors including the availability of relevant information after more than 50 years and privacy laws in effect in various European countries. Any failure to comply with these laws could result in state regulatory authorities seeking to take enforcement actions against AXA and its U.S. affiliates, including Equitable Life. Litigation challenging the validity of the California legislation on constitutional and other grounds that had been pending in US Federal courts in California was heard by the US Supreme Court on April 23, 2003. On June 23, 2003, the U.S. Supreme Court, in a 5-4 decision, struck down the California Holocaust law on grounds that the law violates the U.S. constitution because it interferes with the President's conduct of U.S. foreign policy. At this time management cannot assess the full implications of this decision including the possible reactions of U.S. insurance regulators and/or the U.S. Congress. For additional information on these matters, see "Legal Proceedings", in Item 8 of this annual report. The privacy provisions of the Gramm-Leach-Bliley Act became fully effective in 2001. These provisions establish new consumer protections regarding the security and confidentiality of non-public personal information and require full disclosure of the privacy policies of financial institutions to their consumer customers.



62

There is also legislation pending in the United States Congress and various states designed to provide additional privacy protections to consumer customers of financial institutions. These statutes and similar legislation or regulations in other jurisdictions could impact AXA's ability to market its products or otherwise limit the nature or scope of AXA's insurance and financial services operations in the U.S.

Asia-Pacific and Other Jurisdictions

The other jurisdictions in which AXA operates, including those in the Asia-Pacific region, generally also have comprehensive regulatory schemes and AXA must satisfy the local regulatory requirements in each of these jurisdictions. In general, insurance licenses issued by local authorities are subject to revocation and/or modification by those authorities. Consequently, AXA's insurance subsidiaries could be prevented from conducting business in certain of the jurisdictions in which they currently operate should they not meet such local regulatory requirements. In addition to licensing requirements, AXA's insurance operations in these jurisdictions are also generally regulated with respect to currency, policy terms and language, amount and types of security deposits, amount and type of reserves, amount and type of local investment and the share of profits to be paid to policyholders on participating policies. In certain jurisdictions, regulations governing constitution of technical reserves and similar regulations may prevent payment of dividends to shareholders and/or repatriation of assets.

Asset Management

Alliance Capital and AXA Investment Managers are subject to extensive regulation in the various jurisdictions in which they operate. These regulations are generally designed to safeguard client assets and insure adequacy of disclosure concerning investment returns, risk characteristics of invested assets in various funds, suitability of investments for client investment objectives and risk tolerance, as well as the identity and qualifications of the investment manager. These regulations also generally grant supervisory agencies broad administrative powers, including the power to limit or restrict the carrying on of business for failure to comply with such laws and regulations. In such event, the possible sanctions that may be imposed include the suspension of individual employees, limitations on engaging in business for specific periods, the revocation of the registration as an investment adviser, censures and fines.

Alliance Capital and certain of its subsidiaries as well as certain U.S. subsidiaries of AXA Investment Managers are investment advisers registered under the United States Investment Advisers Act of 1940. Each of Alliance's U.S. mutual funds is registered with the SEC under the U.S. Investment Company Act of 1940 and the shares of most of these funds are qualified for sale in all states in the United States and the District of Columbia, except for U.S. Funds offered only to residents of a particular state. Certain subsidiaries of Alliance Capital are also registered with the SEC as transfer agents and broker-dealers that are subject to minimum net capital requirements. Transactions between Equitable Life and Alliance Capital are subject to applicable provisions of the New York Insurance Law and transactions between AXA Investment Managers and its insurance company clients are subject to various insurance law regulations of the various jurisdictions where these clients are domiciled. These regulations generally require diversification of invested assets, impose limitations on investments in certain asset classes and also generally require that the terms of transactions between the investment manager and the insurance company be fair and equitable, that charges or fees for services performed be reasonable and that certain other standards be met. Fees must be determined either with reference to fees charged to unaffiliated clients for similar services or, in certain cases, which include ancillary service agreements, based on cost reimbursement. In addition, under the New York Insurance Law and regulations certain investment advisory agreements and ancillary administrative services agreements between Equitable Life and Alliance Capital are subject to either approval or disapproval by the New York Superintendent of Insurance within a prescribed notice period.



63

PROPERTY

The Company's headquarters are located in an office building located at 25 Avenue Matignon 75008 Paris, France, which is owned by an affiliate of the Company. In addition to its registered head office, the Company has staff in other locations around Paris including at 21 and 23 Avenue Matignon 75008 Paris, France. The Company also has major operating subsidiaries with headquarters located in other countries including France, the United States, the United Kingdom, Germany, Belgium, Australia and Japan. The headquarters of these subsidiaries are held on either a leasehold or a freehold basis.

AXA also holds numerous investment properties in connection with its insurance and financial services operations.