The Group ’s consolidated fi nancial statements and related notes are prepared in accordance with International Financial
Reporting Standards (IFRS) (the “Consolidated Financial Statements”) and published in Euro (“Euro”, “euro”, “EUR” or
Henri de Castries who, after 27 years in the Group, and close to 17 at its head, stepped down on September 1, 2016.
I would like to thank Henri de Castries who leaves behind him a strong Group on a promising path. I would also like to recogniz e the work of the Board of Directors and its Compensation &
which took us from 2010 to 2015, concentrates on growth in selected areas, such as health or corporate insurance, while working on strengthening the Group’s competitiveness.
AXA determines its dividend policy on the basis of its adjusted earnings less interest charges on its outstanding undated debts.
(b) Individual shareholders who were residents of France for tax purposes were eligible for a tax relief of 40% on the dividend, i.e. €0.29 per share for fi scal year 2012.
(d) Individual shareholders who were residents of France for tax purposes were eligible for a tax relief of 40% on the dividend, i.e. €0.38 per share for fi scal year 2014.
Group generally ranks amongst the top performers in its industry and is also included in the main international sustainability indices: ■ DJSI World and DJSI Europe (based on RobecoSAM research); ■ World 120, Europe 120 and France 20 (based on Vigeo Eiris research); ■ FTSE4GOOD (based on FTSE ESG research).
InsurTech incubator dedicated to conceptualizing, launching and accompanying disruptive InsurTech products and services; and
bank plc.; (vi) Life & Savings and Property & Casualty operations in Serbia to Vienna Insurance Group and exit from the Serbian market, and (vii) Property & Casualty commercial broker in the
■ Direct sales relate to all sales made through mail, telephone or internet.
AXA’s insurance subsidiaries and negotiates reinsurance covers with third party reinsurers.
French 10-year government bond yield decreased by 31 bps to 0.68%, the 10-year Belgium government bond yield decreased by 43 bps to 0.55% and the 10-year Swiss government bond yield also decreased by 12 bps to -0.19% while the 10-year US
America, Brazil in particular, economic growth decelerated in the second half of the year. Turkey and Morocco showed a positive evolution, especially the latter, increasing strongly thanks to the expansion of bancassurance agreements in s avings and the positive prospects for Unit-Linked products. In Central and Eastern Europe, life insurance markets broadly declined, impacted by low interest rates, continued economic weakness and regulatory uncertainties.
India 14 1.5 18 1.4 IRDA statistics as of December 31, 2016 and December 31, 2015 measured on fi rst year premium.
Belgium 1 17.7 1 17.9 Assuralia (Belgium Professional Union of Insurance companies). Based on gross written premium as of September 30, 2016 and December 31, 2015.
Morocco 4 13.3 5 14.1 Moroccan Association of Insurance Companies as of June 30, 2016 and December 31, 2015.
Hong Kong 1 8.4 1 Office of the Commissioner of Insurance (OCI) as of September 30, 2016 and December 31, 2015. Market share not available in 2015.
Germany, the strong increase in premiums, partly caused by the need to readjust old-age reserves has created some tension in the market among distributors and customers of private health insurance.
AXA set out its fi nancial objectives for 2016 to 2020, including underlying earnings per share CAGR (1 ) ranging between 3% and 7% over the period, 2016-2020 cumulated Group Operating
AXA completed the acquisition of Charter Ping An in the Philippines and extended Philippines bancassurance partnership
On July 29, 2016, AXA announced that AXA, Alibaba and Ant
AXA announced the successful placement of €1.5 billion dated subordinated notes due 2047
AXA announced the successful placement of $850 million undated subordinated notes
AXA intends to develop innovative solutions in this sector, be it in terms of partnerships, products and services, distribution channels or operating models.
(€+22 million) mainly driven by the launch of a new product and the sale of a large Group Health contract, and (iii) Spain
(€+13 million) mainly driven by the positive impact from the new distribution agreements with RGA and Caixa Colonya banks.
AXA Investment Managers revenues decreased by 3% (or €-38 million) on a comparable basis to €1,180 million mainly driven by lower management and distribution fees.
(a) Of which AXA Bank Europe and its branches: €388 million.
APE increased by €63 million (+4%) to €1,824 million. On a comparable basis, APE increased by €29 million (+2%): ■ Protection & Health sales (48% of APE) increased by €4 million
Group Protection (€- 209 million) mainly from the non-repeat of positive developments in 2015, as well as the non-repeat of a favorable change in assumptions in Individual Protection in
Adjusted earnings decreased by €60 million (-6%) to €879 million. On a comparable basis, adjusted earnings decreased by €74 million (-8%) driven by lower underlying earnings and lower net realized capital gains (€-8 million).
On a constant exchange rate basis, expenses increased by €844 million (+56%): ■ expenses excluding Deferred Acquisition Costs amortization decreased by €44 million due to lower asset-based sales compensation as a result of lower average balances and lower m utual funds sales; ■ Deferred Acquisition Costs amortization increased by €888 million mainly driven by reactivity to higher Variable
Profi t or loss on fi nancial assets (under Fair Value option) & derivatives 69 (119)
On a constant exchange rate basis, fees & revenues decreased by €130 million (-10%) mainly due to a reclassifi cation of loadings on premiums to surrender margin (€-147 million), partly offset by higher volumes from Protection & Health products and higher Unearned Revenues Reserves amortization of Variable
(0%) mainly due to lower Deferred Acquisition Costs amortization driven by the above-mentioned assumption updates, partly offset by higher amortization relating to the Variable Annuity products (more than offset in Unearned Revenues Reserves).
to €109 million mainly driven by higher sales of full benefi t products.
(a) Before intercompany eliminations. Gross Revenues amounted to €7,044 million net of intercompany eliminations as of December 31, 2016.
Net technical margin decreased by €23 million (-10%) to €203 million. On a constant exchange rate basis, net technical margin decreased by €21 million (-9%) driven by the non-repeat of a favorable development of the disability and mortality claims experience in 2015.
Amortization of VBI increased by €33 million (+76%) to €-77 million. On a constant exchange rate basis, amortization of VBI increased by €34 million (+78%) mainly driven by updated model assumptions in Individual and Group Life attributable to the decrease in interest rates (€-44 million).
Underlying earnings decreased by €41 million (-13%) to €287 million. On a constant exchange rate basis, underlying earnings decreased by €38 million (-12%).
Net capital gains or losses attributable to shareholders net of income tax 50 62
(a) Before intercompany eliminations. Gross Revenues amounted to €1,210 million net of intercompany eliminations as of December 31, 2016.
Net income decreased by €30 million (-29%) to €73 million due to lower adjusted earnings as well as an unfavorable change in the fair value of interest rate hedging derivatives not eligible for hedge accounting.
Average exchange rate : €1.00 = Hong Kong Dollar 8.589 8.679
to €24 million following signifi cant regulatory changes as well as the non-repeat of exceptional sales of large contracts in 2015.
Investment margin remained stable at €0 million. On a constant exchange rate basis, investment margin remained stable as higher investment income driven by higher average asset base was offset by higher interests credited to policyholders.
On a constant exchange rate basis, fees & revenues decreased by €47 million (-7%) as robust new business and in-force growth in Protection & Health were more than offset by temporary reactivity to market experience and lower Unit-Linked management fees.
On a constant exchange rate basis, expenses decreased by €18 million (-5%) driven by the disposal of pension business in 2015 as well as disciplined expense management.
As a result, the underlying cost income ratio decreased by 3.0 points to 49.6%.
Underlying earnings increased by €3 million to €-21 million mainly due to a more favorable development on the run-off portfolio.
and a more favorable change in the fair value of mutual funds and economic derivatives not eligible for hedge accounting
Income tax expenses decreased by €37 million (-22%) to €-128 million due to lower pre-tax underlying earnings.
Net investment result decreased by €22 million (-11%) to €173 million. On a constant exchange rate basis, net investment result decreased by €20 million (-10%) mainly driven by lower reinvestment yields on fi xed income assets and higher foreign exchange hedging costs.
Net capital gains or losses attributable to shareholders net of income tax 57 37
Net capital gains or losses attributable to shareholders net of income tax 5 6
However, many Group subsidiaries, particularly AXA’s insurance subsidiaries, are subject to local regulatory restrictions on the amount of dividends they can pay to their shareholders. For more information on these restrictions, see Note 29.4 “Other items: restrictions on dividend payments to shareholders” in Part 5 –
bought back the equivalent number of such shares to cancel them.
January 17, 2015 mostly benefi t from the transitional provisions foreseen in the Directive 2014/51/EU (Omnibus II) as they were previously eligible under the Solvency I regime and were issued prior to the Solvency II Delegated Regulation.
Finally, own funds for which availability would not be proven are included in the Group own funds in so far as they are eligible for covering the SCR of the entity.
Number of AXA shares/ADS AXA held on December 31, 2016: 1,367,258
(OECD). Since September 1, 2016, Mr. Denis Duverne has been non-executive Chairman of the Board of Directors of AXA.
Elected on April 30, 2015 – Term expires at the 2019
Chairman and Chief Executive Offi cer of HSBC in Malaysia. From 2010 to 2014, she was Chief Executive Offi cer & President of HSBC USA.
Chairman of the Board of Directors of Eutelsat Communications. The AXA
Offi ce and on various ministry staffs, including that of Finance Minister
Swiss Re’s Property & Casualty and Life & Health Underwriting activities; and in September 2008, he took over as Chief Operating Offi cer of Swiss
Management. Mr. de Oliveira was also a member of the fi rm’s Management
Committee since its inception in 1995. Upon the merger with Chase
Chairman of the Board: Friends of Education (not-forprofi t organization) (United States)
Groupe Europe in 2002. From January 2003 to May 2005, she was
7 Not represent an important shareholder of the Company (holding more than 10% of share capital or voting rights)
Strategic Plan, examination of the 2015 fi nancial statements and the 2016 half-year financial statements, review of the
(2) The role of the Senior Independent Director is set out in the Board’s Terms of Reference which are available on AXA’s website.
According to the Board’s Terms of Reference and the recommendations of the Afep-Medef Code, each member of the Board of Directors is required to inform the Chairman of the
(g) In 2016, the increase by 575 in AXA Assistance was mainly driven by the acquisition of two entities.
Total target compensation of the Chief Executive Offi cer as of September 1, 2016
Buberl as Chief Executive Offi cer as of September 1, 2016)
The selected indicators to measure the Group performance refl ect objectives widely disclosed internally and externally with respect to growth, profi tability, capital management, operational effi ciency and proximity with clients. Thus, these indicators, directly linked to the strategic orientations of the
Group, are both fi nancial and operating criteria and rely on the budget and on predefi ned performance indicators; ■ I ndividual performance for 50%, which is evaluated based on objectives specifi cally related to strategic initiatives set and reviewed each year.
The performance of Regions or Global Business Lines is determined on the basis of the following performance indicators: ■ underlying earnings; ■ customer scope index; ■ gross revenue Protection & Health; ■ Life & Savings New Business Value; ■ economic expenses; ■ Life & Savings Operating Free Cash Flow; ■ Property & Casualty revenues; ■ current year combined ratio.
In the tables of this section, compensation not paid in Euro was converted into Euro on the basis of the following yearly average exchange rates for 2016: 1 USD = 0.9048 EUR; 1 SGD = 0.6544
On June 19, 2015, the fair value of one option was €1.39 for options with performance conditions, and the fair value of one performance share was €14.35.
The Board of Directors also decided that the total number of options granted to the executive offi cers of the Company each year may not exceed 10% of the aggregate number of options granted during the same year, to avoid an excessive concentration of options granted to the executive offi cers.
(disregarding the dilution related to the potential future exercise of these options).
Executive Directors: Start date of exercise 24/09/2011 19/11/2009 19/11/2011 01/04/2010 01/04/2010 19/05/2010 19/05/2012 22/09/2010 22/09/2012 24/11/2012
Under the AXA Group Compliance and Ethics Guide, all employees (including the executive offi cers of the Company) are prohibited from engaging in any transaction designed to hedge the value of equity- based compensation awards ( stock options and performance shares ) granted under any plan or arrangement maintained by AXA or any of its subsidiaries. This restriction applies from the date of grant until such time as the benefi ciary receives the securities underlying the award upon, for example, the exercise of a stock option or the lapse of restrictions on performance shares . In accordance with the recommendations of the Afep-Medef Code, the executive offi cers of the Company make a formal commitment to not resort to such hedging transactions.
• 80% of the shares shall be granted if AXA’s score is equal to the seventy-fi fth percentile,
Shareholder Return – “TSR”) with the growth of the TSR of the stock reference index of the insurance sector (SXIP) in order to adjust upwards or downwards within the limit of 5 points the global performance rate. Thus, AXA’s outperformance (150%
(e) 7,732 units of the March 24, 2014 plan acquired by anticipation.
Requirement”) representing a multiple of the annual fixed compensation received for his/her functions within the Group: ■ the Chief Executive Offi cer is required to hold the equivalent of his annual fi xed compensation multiplied by 3; ■ Management Committee members are required to hold the equivalent of their annual fi xed compensation multiplied by 2; ■ Partners group are required to hold the equivalent of their annual fi xed compensation multiplied by 1.
Minimum Shareholding Requirement within a period of 5 years as from the date of his/fi rst appointment.
The executive offi cers of the Company until August 31, 2016
Thomas Buberl Chief Executive Offi cer Beginning of current mandate: September 1, 2016 Term of offi ce: 2018 – X X (a) – X – – X
Board of Directors during its meeting held on February 22, 2017, upon recommendation of its Compensation & Governance Committee.
Under this mechanism, payment of 30% of his actual annual variable compensation will be deferred over the course of two years and will be subject to performance conditions. Thus, the actual deferred amount will vary depending on changes in the AXA share price over the deferral period, subject to a minimum of 80% of the deferred amount and a cap at 120% of the deferred amount. However, no variable compensation will be paid in the event that the Group’s underlying earnings are negative for the year ending immediately prior to the year of the scheduled payout, or in case of resignation or dismissal for gross or willful misconduct, prior to the payout date.
The Chief Executive Offi cer, who also is a member of the Board of Directors of the Company, is not entitled to payment of any directors’ fees from the Company. In addition, directors’ fees paid to the Chief Executive Offi cer with regards to directorships held in other companies of the Group are deducted up to 70% from his annual variable compensation, in accordance with the Group policy applicable to all employees who benefi t from directors’ fees.
Commitments are presented in more detail in the special report of the Statutory Auditors on regulated agreements and commitments and in this Registration Document .
Document and goes beyond the statutory duties of a Chairman under French law.
The amount of severance benefi t to be paid to the benefi ciary would be adjusted in accordance with the level of achievement against these performance conditions: • 100% of the severance benefi t will be paid if at least two of the three performance conditions are met; • 40% of the severance benefi t will be paid if only one performance condition is met; • No severance benefi t shall be paid if none of the performance conditions are met.
Netherlands and upcoming elections in France and Germany, which may adversely affect the membership of these countries in the European Union or the Eurozone, or relations between these countries and the European Union or the Eurozone and other recent developments such as the negative outcome of the “Brexit” referendum in June 2016 and the Italian referendum on constitutional reform in December 2016 and uncertainty regarding the U.S. and worldwide political, regulatory and economic environment following the inauguration of a new
Casualty insurance business may have an adverse effect on our results of operations and fi nancial condition.
(including third-party providers deemed critical to our principal activities) telecommunications and electronic data systems, or a failure to maintain the security, confi dentiality or privacy of sensitive data residing on such systems, could also potentially
As a global company operating in several jurisdictions, we are subject to various tax regimes and regulations. Changes in tax laws, including the U.S. Foreign Account Tax Compliance
When appropriate, this role leads to the implementation of decisions that affect the Group’s risk profi le, helping to monitor the solvency position and manage the volatility of the Group’s earnings through improved understanding of the risks taken and optimization of capital allocation.
In accordance with the Group’s IFC Standard, the in-scope entities (i) document the signifi cant processes and controls, as well as the rationale of how the associated risk of material misstatement due to error or fraud can be reduced to an acceptable level and (ii) test the design and operational effectiveness of key controls based on the test plans.
The underlying methodologies and assumptions used in the economic capital model are regularly reviewed to ensure that they accurately refl ect the AXA Group’s risk profi le and new methods are developed and integrated regularly (in accordance with the Internal Model change policy).
The Group has implemented and documented a validation process of its Internal Model to monitor its performance and continued adequacy. This process and associated governance are documented in the Group validation policy, endorsed by the ARCC .
The overall objectives of all investment decisions made within the Group are to ensure that its obligations and commitments to policyholders are met at all times, to protect the solvency of the Group’s entities, and to generate superior return over time.
In order to effi ciently coordinate local and global investment processes, decisions within the Group’s investment community are taken by two main governance bodies: ■ the Group Investment Committee, which is chaired by the Group Chief Financial Offi cer. This Committee defi nes investment strategies, steers tactical asset allocation, evaluates new investment opportunities and monitors the
Value & AFR report 2016” which is available on AXA Group website www.axa.com .
2016 equity market sensitivities for Property & Casualty business (% of P&C AFR) of 1% to 10% higher value and -1%
In EMEA-LATAM Region, AXA entities held investments denominated in foreign currencies for €1,318 million in 2016
In Spain, AXA entities held investments in foreign currency for €567 million in 2016 (€394 million in 2015) directly and indirectly through physical assets. These investments are mainly in US
These countries accounted for 88% at the end of 2016 (87% in 2015) of the Group’s Property & Casualty companies’ assets.
Solvency Capital Requirement metric, as detailed in the paragraph “ Internal Model” in the Section 4.2 “Internal c ontrol and r isk m anagement” of this Annual Report and is taken into account in AXA’s liquidity Risk Management framework (please refer to Section 4.5 “Liquidity r isk” of this Annual Report).
(corporate, Government agency and sub sovereign). The limits also take into account all AXA Group exposures on a given ultimate shareholder these issuers through debt securities, equity, derivatives and reinsurance counterparty risk.
Life risks also include risks related to mortality, longevity, lapses, disability and pandemics among others. The main risks to which the life business is exposed are longevity risk and lapse risk, which are both sensitive to changes in interest rates, and could be defi ned as follows: ■ longevity risk is the risk related to the overestimation of mortality rates for business contingent on longevity; ■ lapse risk is the risk of experiencing lapses lower (or higher)
Group’s Property & Casualty reserves cover Liability insurance business; ■ 33% at the end of 2016 (34% at the end of 2015) cover the other lines of business.
For further information on the regulatory environment in which AXA Group operates including regulatory risks, please refer to the paragraph “Regulatory-related risks” in Section 4.1 “Risk f actors” of this Annual Report.
of which change in fair value of assets with financial risk borne by policyholders (f) 9,124 784
(c) Including changes in ownership interest in consolidated subsidiaries without losing control.
Dividends recorded in profi t or loss during the period (3,076) (3,205)
Purchase of subsidiaries and affi liated companies, net of cash acquired (116) (223)
Net cash related to changes in scope of consolidation 88 72
(b) Includes impairment and amortization of intangible assets booked in the context of business combinations and discontinued operations.
(c) Includes impact of reinsurance and change in liabilities arising from contracts where the fi nancial risk is borne by policyholders.
January 1, 2018. The amendments have not been endorsed by the European Union.
A fi nancial instrument is regarded as not quoted in an active market if there is little observation of transaction prices as an inherent characteristic of the instrument, when there is a signifi cant decline in the volume and level of trading activity, in case of signifi cant illiquidity or if observable prices cannot be considered as representing fair value because of dislocated market conditions. Characteristics of inactive markets can therefore be very different in nature, inherent to the instrument or indicative of a change in the conditions prevailing in certain markets.
The objective of valuation techniques is to arrive at the price at which an orderly transaction would take place between market participants (a willing buyer and a willing seller) at the measurement date. Valuation technique models include: • market approach: The consideration of recent prices and other relevant information generated by market transactions involving substantially similar assets or liabilities; • income approach: Use of discounted cash fl ow analysis, option pricing models, and other present value techniques to convert future amounts to a single current (i.e.
Luxembourg and Russia; ■ the International Insurance segment will no longer be reported separately. Entities which were part of this segment have been reallocated as follows: • AXA Corporate Solutions Assurance, AXA Assistance, AXA
Savings segment consists of twelve geographic operating entities: France, the United States, the United Kingdom until the sale, Japan, Germany, Switzerland, Belgium, EMEA-LATAM
Please refer to pages 206 to 210 of Section 4.3, “Market r isks”, sub sections “Interest r ates & e quity r isk related to the o perating a ctivities of Group s ubsidiaries” and “Exchange-r ate r isk related to the o perating a ctivities of Group s ubsidiaries”.
(a) Reclassifi cation of the International Insurance activity in Life & Savings and Property & Casualty.
(b) Property & Casualty: includes the acquisitions of Simplyhealth (€+7 million) in the United Kingdom and BREU Insurance in Poland (€+9 million).
Assets backing contracts where the fi nancial risk is borne by policyholders 175,292 175,292 24.10%
Loans from activities other than insurance and banks 91 92 212 211
Impairment - Non consolidated investment funds 950 74 (33) - 63 1,054
Financial investments and loans designated as at fair value through profi t or loss 32,773 28,035 11,632 72,440 72,310 29,667 28,984 10,056 68,707 68,599
Methods applied to determine the fair value of investments measured at fair value in the fi nancial statements are described in Note 1.5.
The extent to which such data are external to the Group and not assessed by internal valuation teams is one of the main criteria applied in assessing whether data are observable or not. Should those data be signifi cantly adjusted or would they be outdated because of the lack of newly available factors, such inputs would be deemed unobservable. Another area of judgment is the assessment of the signifi cance of an input against the fair value measurement in its entirety. As a result, a different cut between observable and unobservable data and variances in the weighting of the signifi cance of each input against the fair value measurement in its entirety could produce a different categorization.
Assets not quoted in an active market or no active market
Bharti AXA General Insurance Company Limited 34 - (16) 0 16 34
As of December 31, 2016, the Group share of interest in Krungthai AXA Life Insurance Company Ltd. and AXA Tian Ping were of 50.0%.
As of December 31, 2016, the Company and its subsidiaries owned 5.9 million AXA shares, representing 0.24% of the share capital, an increase of 3.9 million shares compared to
As of December 31, 2016, 1.9 million treasury shares backing contracts where fi nancial risk is borne by policyholders held in consolidated investment funds were not deducted from shareholders’ equity. Their total estimated historical cost was €31 million and their market value €45 million at the end of
In 2016, the change in other reserves was driven by: ■ €-1,260 million from repayment of undated subordinated debt; ■ €-267 million from interest expense related to the undated subordinated debt (net of tax); ■ €-181 million from foreign exchange rate fl uctuations.
UNREALIZED GAINS AND LOSSES (NET OF TAX) – 100% - TOTAL 2,951 942 879 1,806
Unrealized gains and losses (net of tax) 100%, opening 13,352 15,469
Change in scope of consolidation, portfolio transfers and change in accounting principles (390) (24,324) (24,715) (228) (33) (262)
In 2016, the change in scope of consolidation totalled €24,715 million, mainly due to the disposal of UK L&S business for €-23,804 milli on and the classifi cation as held for sale of AXA
(b) Includes future policy benefi ts reserves (including shadow accounting reserves), unearned premiums reserves, unexpired risk reserves, claims reserves, claims expense reserves and other policy benefi ts reserves. Excludes unearned revenues and unearned fees reserves and liabilities from policyholders participation.
Investment contracts with no Discretionary Participation Features (DPF) measured according to existing accounting policies 2,382 538
Loss reserves development table: property and casualty (excluding Colisée RE - ex AXA RE)
14.10. PAYMENT, SURRENDER PROJECTIONS, INSURANCE AND INVESTMENT CONTRACT LIABILITIES DISCOUNT RATES
• €1,022 million as of December 31, 2016 (€1,258 million as of December 31, 2015) mainly based on observable market data inputs and are considered as Level 2 fair values, and
As of December 31, 2016, payables arising from direct insurance and inward reinsurance operations as disclosed in the Note 18.1, totaled €10,356 million, an increase of €596 million compared to December 31, 2015, mainly due to increase in payables to policyholders, brokers and general agents and reinsurance operations in Switzerand Life & Savings, Hong Kong Life &
Tax losses of prior years used in the current year without DTA recognized previously (11) (5)
(see Note 13 for details) or derivative instruments held by consolidated investment funds in the “Satellite Investment Portfolio” (see
Liability Management (ALM) strategy in insurance companies, as well as holdings and banks. Notional amount of such hedging strategies amounted to €416.4 billion as of December 31, 2016
PROPERTY & CASUALTY 35,604 34,831 of which direct premiums 33,655 32,956 of which reinsurance assumed 1,879 1,558 of which revenues from other activities 70 317
(a) The contribution of discontinued United Kingdom Life & Savings operations is reclassifi ed on a separate line of statement of Income and the International Insurance activity is reclassifi ed in Life & Savings and Property & Casualty segments.
Assets backing contracts where the fi nancial risk is borne by policyholders - - 9,124 - 9,124
Commissions received from / paid to reinsurers 138 538 (19) 657
(which are presented in Note 26.2.8.). The table below shows the detailed roll-forward of the statement of fi nancial position liability, with the Separate Assets added at each year end.
Net transfer In/(Out) (including acquisitions, disposals and reclassifi cations) 5 (93) (1) - 4 (93)
AXA Group as at December 31, 2016 and 2015, respectively (fair value hierarchy principles as described by the Group are described in Note 1.5.): Asset mix for plan assets
AXA treasury shares. While the precise terms and conditions of each option grant may vary, options are currently (i) granted at a price not less than the average closing price of the ordinary share on the Paris Stock Exchange during the 20 trading days preceding the date of grant, (ii) valid for a maximum term of ten years, and (iii) vest generally in instalments of 33.33% per year on each of the second, third and fourth anniversaries of the grant date. For options granted since 2014, the vesting remains in instalments of 33.33% per year but on each of the third, fourth and fi fth anniversaries of the grant date.
AXA offers its employees the opportunity to become shareholders through a special employee share offering. In countries that meet the legal and fi scal requirements, two investment options are available: the traditional plan and the leveraged plan.
On March, 16, 2012, AXA granted 50 free AXA ordinary shares
Investments in non-consolidated investment funds are limited to the shares in these funds which do not provide control.
Pledged securities and collateralized commitments received totalled €36,324 million at the end of 2016, and mainly consisted of: ■ Mortgage security collateral taken for loans totaled €22,660 mi l l ion, main ly f rom AXA Bank Europe
Litigation and the Sanford Litigation have been consolidated and went to trial on January 6, 2016. In August 2016, the court decided in favor of AXA Equitable. In December 2016, plaintiffs fi led a notice to appeal. AXA Equitable believes that it has strong defenses to these claims and will defend them vigorously.
These actions alleged that AXA Equitable did not disclose in its
AXA announced the successful placement of $1 billion dated subordinated notes due 2047
– Voting rights” of this Annual Report. Of the Company’s 2,425,149,130 outstanding ordinary shares on December 31, 2016, 439,734,569 shares entitled their holders to double voting rights as of that date.
The traditional plan allowed employees to subscribe through a personal investment to AXA shares (either through m utual funds (FCPE) or through direct share ownership, depending on countries) with a 20% discount. The shares are held within the
The leveraged plan in 2016 allowed employees to subscribe, on the basis of 10 times their personal investment, in AXA shares
(the “Convertible Bonds”) was 6,612,510. The maturity date of the Convertible Bonds was January 1, 2017. Pursuant to the terms of the Convertible Bonds, bondholders had to notify AXA of their election to maintain their conversion option prior to that date. Consequently, on January 1, 2017, the
(“RSR”), which is to be submitted by the undertaking to the competent national regulator on a regular basis as determined by the regulation, and the Solvency and Financial Condition
capital requirement (“BCR”) applicable to all GSII activities which serves as a basis for an additional level of capital, called “Higher
Group’s fi nancial risk framework, including credit and liquidity risk procedures, has been adjusted to refl ect these requirements.
(e.g. when providing advice distributors have to assess whether the insurance-based investment product is suitable for the customer). Member States must transpose the IDD into national legislation by February 23, 2018.
AXA’s Bylaws provide that, the Shareholders’ Meeting may grant each shareholder the choice of receiving dividends in either cash or additional ordinary shares.
French Commercial Code as well as reasoned opinion on the fairness of the Information.
The Group also signed up to or supports various initiatives, including the “Kyoto Statement” (Geneva Association), “Caring for Climate” (WBCSD/UNEP FI/UN Global Compact), the CDP
com) was concluded in order to guarantee a high level of social dialogue. AXA holds two EWC plenary meetings a year, as well as monthly sessions, held by 12 members of the EWC, to stay abreast of labor and economic developments in each country.
The number of assignments related to high growth markets is also increasing. In 2016, they reached 54% of new moves (vs.
By the end of 2016, 30% of AXA’s employees were working in an agile working environment (1).
Detailed information concerning AXA’s compensation policy is provided in Part 3 Section 2 of this Annual Report.
is now open to almost 86,000 people with nearly 14,000 active learners. The success of the platform and its innovative approach were recognized in 2016 during the ACSEL event
Efforts have also been implemented in developing technical skills, such as the build of Property & Casualty and Life & Savings development curricula: “Life and Savings Protection Academy”,
Number of training days of salaried workforce 323,967.1 days -1.2% 327,939.3 days
Responsibility team coordinates a network of around 300 dedicated environmental managers and employees in local entities. This network monitors annual progress on its reduction targets through the internal reporting tool, which helps local entities evaluate their own action plans and targets. These managers then analyse indicators, identify performance targets and promote best practice sharing. To accompany these action plans, entities have put in place a wide variety of activities to raise awareness and train employees on environmental issues and risks. At Group level, AXA organizes a yearly event on
However, AXA’s most significant impact on society occurs through its insurance, savings and investment services, which contribute to economic growth, stabilization, and improved risk sharing across fi rms and h ouseholds, and between generations.
AXA France co-created the “Assurance Citoyenne” label with civil society representatives. It is a set of criteria that defi ne minimum requirements to qualify as “sustainable insurance” products.
AXA defi nes its stakeholders as any individual or group affected, or likely to be affected, by its business operations, or who, in turn, may affect the Group’s performance or the environment in which it operates. AXA’s stakeholders include the Group’s shareholders and investors, its employees, its business partners and suppliers, as well as governments, international organizations and community groups.
CARE will be working in three main areas: disaster risk reduction, climate change and fi nancial inclusion. In addition, AXA recently agreed two other stakeholder partnerships: the Group will be working with UNICEF to help tackle childhood obesity in Mexico and with UN Habitat on strengthening building codes to build resilience in countries vulnerable to natural disaster.
AXA’s approach to community investment also covers a number of other activities and initiatives, including: ■ employee volunteering, through local volunteering programs and the AXA Hearts In Action initiative; ■ the AXA Research Fund (see section below); ■ strategic partnerships, including long-standing partnership with CARE (since 2011, AXA has donated €5.4 million), and partnerships signed in 2016 with UNICEF and UN Habitat
AXA is a major purchaser of products and services for the purpose of its internal operations as well as services provided to its clients. AXA buyers are required to sign a specific procurement code of ethics in addition to the Group Compliance and Ethics Guide. AXA also encourages its suppliers to be socially and environmentally responsible and requests from them a formal commitment to uphold International Labor
Organisation principles. In addition, the Group applies social and environmental criteria to assess supplier performance through the Ecovadis tool, a specialist assessment platform. Ecovadis helps AXA to monitor environmental, ethical, and social practices of its suppliers and business partners. These criteria enable the Group to improve service quality and reduce some supply chain risks. Finally, ethics policies and training are available to all employees and specifi cally address procurement relationships.
in 2015, committing to assess and disclose the carbon intensity of its investments. The 2016 analysis ( www.axa.
PHYSICAL RISKS: MEASURING THE IMPACT OF CLIMATE EVENTS ON OUR INVESTMENTS
fi nancial system. The Group will submit a fi nal report to the
Risk Management tools and models ■ Chapter 4.2 Internal Control and Risk Management ■ Chapter 7.5 Responsible Investment > Integrating
Article R.225-105-1 of the French Commercial Code in accordance with the Social Data Report referential, the Environmental
On the basis of our work, our responsibility is to: ■ attest that the required CSR Information is included in the management report or, in the event of non-disclosure of a part or all of the CSR Information, that an explanation is provided in accordance with the third paragraph of Article R.225-105 of the French
Board of Directors with respect to the Group’s internal control environment. This report was assessed by the Audit Committee before being reviewed and approved by the Board of Directors during its meeting of March 16, 2017.
“The Board Committees” Sections of this Annual Report. For information on specifi c limitations of the powers of the Chief
1 – Closing balance sheet summary a) Capital – Ordinary shares (in Euro million) 5,470 5,537 5,593 5,557 5,554 b) Ordinary shares (numbers in million) 2,389 2,418 2,442 2,426 2,425 c) Bonds convertible into ordinary shares (numbers in million) (a) 7 7 7 7 7 2 – Income statement summary (in Euro million)
AXA LIFE INSURANCE COMPANY CO Ltd NBF Platinium Tower 1-17-3 Shirokane – Minato-ku 108 – 8020 TOKYO – Japan
I Notes to the fi nancial statements as at December 31, 2016
Find below a summary of options and performances or units shares granted in 2016 and 2015 to members of the Management
The income statement distinguishes between ordinary operations and capital operations: ■ ordinary operations include dividends, revenues from other investments, fi nancial expenses, operating expenses and income from transactions in investments;
n° 2013-02, so as to measure any additional adjustment necessary to ensure the coverage of defi ned post-retirement benefi t obligations and for accounting purpose. The method 1, as defi ned by this Recommendation has been applied: past service costs are recognized in profi t and loss over the vesting period and the expected return on asset is used in developing the net periodic pension cost. Pursuant to this review and following a €10 million payment to an external organism to fund the related obligations, the employee benefi t liability recognised was nil as at December 31, 2016 and 2015. Additional information on employees’ defi ned benefi t obligations is provided in Note 26.2 of consolidated fi nancial statements.
Other shareholders’ equity includes the undated deeply subordinated securities (T S S ) which totalled €5,206 million versus €6,734 million in 2015, taking into account the repayment of €1,254 million of T S S and a positive currency translation adjustment of €237 million.
Of which fi nancial guarantees given to Group entities 11,109 -
The information used for calculating the fair value of fi nancing debt is market prices at the end of the period, using (i) market rates for each currency, (ii) AXA’s average spread by maturity and for the main currencies, distinguishing between subordinated debt and senior debt, and (iii) options included in issue contracts, such as issuer redemption options.
It consists of the present value of future profi ts after the costs of acquiring business, less (i) an allowance for the time value of fi nancial option and guarantees, (ii) cost of capital and nonfi nancial risks. AXA calculates this value net of tax.
Even though the presentation of the Margin Analysis is not the same as the Statement of Income (underlying basis), it is based on the same GAAP measures as used to prepare the Statement of Income in accordance with IFRS. As a result, the operating income under the Margin Analysis is equal to that reported in
There are certain material differences between the detailed line-by-line presentation in the Statement of Income and the components of Margin Analysis as set out below: For insurance contracts and investment contracts with
deposits received on all General Account product lines; ■ deferred income such as capitalization net of amortization of