Shareholders AXA seeks to sat is fy i ts shareholders by achieving operating performance that ranks among the best in the industry, and by furnishing complete and accurate financial information.
Information concerning the share capital of the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344
Henri de Castries: I think we have learned three key lessons, which, incidentally, allow us to look to the future with a sense of calm determination: The first is that it is wiser to believe in your own vision of the business, and to hang onto that vision, than to give in to ideas received or passing trends.
Pending shareholder approval of the foregoing, the Supervisory Board will have a total of 14 members following the
According to the criteria set forth in the Bouton report, on December 31, 2003, 9 of the 13 Supervisory Board members are independent : Thierry Breton, Jacques Calvet, David Dautresme, Anthony Hamilton, Henri Hottinguer, Gérard
Chairman and CEO of Finaxa; Director or member of the Supervisory Board of AXA Financial (United States), BNP Paribas, Vivendi Universal and the AXA Mutuals.
Chairman and CEO of Sofibus; Chairman of the Supervisory Board of Crédit Suisse Hottinguer et Emba NV (The Netherlands); Vice-Chairman of Gaspee (Switzerland); Chairman of the Board of Hottinguer Capital Corp. (United States); Senior Chief Officer and Director of Financière Hottinguer and d’Intercom; Director of FINAXA, AXA France IARD and AXA France Vie.
The Board thus benefits from the work of the Audit, Finance, Compensation and Selection Committees.
– implications of the French new economic regulations (NRE) act and the Sarbanes-Oxley act on the Group’s operations, and measures taken.
The primary subjects considered by the Compensation Committee in 2003 are indicated below: – compensation paid to members of the Management Board and the Executive Committee,
Claude Brunet Member of the Management Board in charge of Transversal Operations and Projects, Human Resources, Brand and Communications.
(1) Until the beginning of 2004, Michel Pinault was also Head of Asia Pacific business unit (excluding Japan).
– The performance of the AXA share by reference to its competitors.
In 2003, based on 2002 membership and attendance, the Company paid 660,000 euros gross (621,959.95 euros net) in directors’ fees to the 14 members of the Supervisory Board.
Stock options exercised during the year by the 10 employees who exercised the highest number of options. 273, 080 €9.52
Entities prepare their strategic plans in accordance with targets set by the Management Board. The BSD team prepares these targets, sends them to the Business Units and monitors compliance with them.
The BSD team collects, reviews and transmits information to the Management Board concerning the business model, market position and any other issue that may help the Management Board in setting strategy. The BSD team passes on specific information and requests in order to facilitate and monitor the execution of the strategy. The BSD
GROUP FINANCIAL MANAGEMENT Financial management has three main areas, which are reflected in the Finance Department’s organisation: – Consolidation and management control and review of financial and accounting information. The PBRC (central planning, budget and results department) is in charge of transmitting accounting and management information.
– analysing quantitative data on Group activity and results, and key performance indicators,
The review and analysis of financial and accounting information, which is consolidated using the system and accompanied by detailed comments from subsidiaries making up the various consolidation sub-groups, are carried out by teams dedicated to liaising with subsidiaries. In particular, these teams review: – re-treatment of local GAAP financials in accordance with Group standards and consolidation principles,
Operational entities are in charge of liquidity risk management. DCFG monitors this risk on a consolidated basis, carrying out a standardised measurement of the maturity of resources available to each entity that may carry a significant risk.
In order to comply with the Sarbanes-Oxley act, a new Code of Ethics was adopted in February 2004. The new Code deals with conflicts of interest, trading in the shares of AXA and its listed subsidiaries, confidentiality rules and the control of sensitive information, the policy for protecting and safeguarding the company’s data, and the process for dealing with employee complaints.
The Group IT department sets IT security standards and monitors their application. It is also in charge of defining and arranging the implementation of policy concerning business continuity plans.
In addition, strategic internal audit assignments are carried out in accordance with the written instructions of the
Management Board’s Chairman. The director of the Group Internal Audit team also has a direct link with AXA’s Audit
Under the control of the Supervisory Board, the Management Board defines and implements comprehensive and efficient internal control procedures. It is the role of the Chairman of the Supervisory Board to submit a formal report in which particular attention is drawn to (i) the conditions under which the work completed by the Supervisory Board during the year ended was prepared and organized, and (ii) the internal control procedures that the Company has put in place.
DEDICATED PROFESSIONALS Based in Paris and New York, the Group’s investor relations professionals maintain ongoing relationships with members of the investment community: brokerage house analysts, fund managers, investment company analysts and representatives of rating agencies. AXA’s investor relations teams provide regular and complete information about events that impact Group operations and performance, and are always available to answer questions.
For registered shareholders, a call center managed and staffed by specialists from BNP Paribas Securities Services is available to provide information on AXA and on their securities accounts. Since March of 2003, eligible shareholders can consult their account status or transmit and track buy and sell orders through a special portal
Impact of exceptional operations 148 235 – Goodwill amortization (group share) (593) (643) (681)
Tillinghast has concluded that the operating assumptions are reasonable in the context of AXA’s recent experience and expected future operating environment and are consistent with other information disclosed in this document.
By providing individuals with the support they need to recover from loss or damage to acquired property, insurance also helps to build social cohesion.
one of the world’s major investors in micro- and macro-economic development.
Responsible Real-Estate Asset Management Real-estate assets account for 4 percent, or 31 billion euros, of AXA’s total assets under management. Because property is a tangible good, the way in which it is managed can have direct environmental impacts.
AXA AND ITS SHAREHOLDERS The detail of this part is presented in the section “Introduction” of this Annual Report.
WOMEN IN THE AXA WORKFORCE IN 2003 (5 HISTORICAL COMPARISONS: MALE/FEMALE GENDER BREAKDOWNS)
Clear individual objectives: Managers are expected to meet with their employees annually to review past performance and set future objectives. These meetings help employees to understand how they contribute to meeting companylevel objectives.
The support from managers needed to excel professionally and contribute to improving company performance.
environmental insurance contracts 60,272 property-casualty contracts that include environmental impairment coverage
Mileage on company motor fleet vehicle (km) 50,081,000 54,898,980 10% 74,898,980
But with the help of its sustainable development team, AXA has made major strides in terms of identifying practices and clarifying its message. Both facilitate communication without standing in the way of direct contact between SRI analysts and in-house specialists at AXA.”
in 1996. It has launched a vast environmental program, which is still at an early stage and will require AXA to train all its employees.
(b) Adjusted earnings represent net income before the impact of exceptional operations and amortization of goodwill. Adjusted earnings represents a non-GAAP measure, which management believes provides a meaningful understanding of the results. It should be noted that this information may not be comparable with similarly-titled measures reported by other companies as it is not defined under either French GAAP or U.S. GAAP.
COMPETITION The nature and level of competition vary 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 still competes 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.
Years ended December 31, Gross insurance liabilities (in euro millions, except percentages) 2003 2002 2001 at December 31, 2003
COMPETITION The nature and level of competition vary among the countries in which AXA operates. Overall, the Property &
& Casualty operations. The split by distribution channels used by AXA’s Property & Casualty operations, based on gross written premiums for the year ended December 31, 2003, is presented below.
– Management of mutual funds sponsored by Alliance Capital, its subsidiaries and affiliates for individual investors.
Of which allocated to UK “With-Profit” business-trading (b) 2,822 2,822 – – – – 2,822 2,822 1% 1%
Morgages, policy and other loans 16,304 16,879 654 672 50 41 17,009 17,591 7% 7% Of which allocated to UK “With-Profit” business-trading (b) 37 37 – – – – 37 37 0% 0%
Equity investments (including trading accounts): Related assets at year end 11,382 11,358 11,636
Total invested assets: Total invested assets at year end 9,537 9,388 8,249 (a) The investment yields were calculated on a constant structual basis using the average net carrying value of invested assets (for each category) in the period. The realized gains were net of realized losses and included the net change in valuation allowances on impaired assets.
(26%), subsidiary based in Hong Kong and owned by AXA Asia Pacific Holdings in which AXA has a 51% voting interest.
In 1999, Guardian Royal Exchange. AXA has acquired the group Guardian Royal Exchange (“GRE”), through AXA
Financial, Inc., AXA Asia Pacific Holdings and AXA UK Holdings are also holding companies and are dependent on dividends received from their own subsidiaries for funds to meet their obligations. In addition, some of AXA’s principal subsidiaries are subject to restrictions on the amount of dividends and debt repayments that can be paid.
LIFE & SAVINGS Liquidity needs can also be affected by fluctuations in the level of surrenders, withdrawals and guarantees to policyholders in the form of minimum income benefits or death benefits specifically on variable annuity business
On a consolidated basis, the aggregate principal payments required to be made on subordinated and nonsubordinated debt instruments issued for 2004 and the four years thereafter amount to €2,394 million in 2004 (including €1,389 million relating to ORANs ), €684 million in 2005, €339 million in 2006, €3 million in 2007 and €397 million in 2008. The remaining €9,793 million matures after 2008. Amounts owed to credit institutions are generally payable on demand, except those of the Company. Off-balance sheet commitments are discussed in Note 30 to the consolidated financial statements.
– Since 1994, AXA has regularly offered shares to its employees. In 2003, AXA employees invested a total of €188 million in the employee stock ownership program (€13 million in July 2003 and €175 million in December 2003)
resulting in the issuance of 15.1 million AXA ordinary shares. At December 31, 2003, AXA employees held approximately 4.8% of AXA ordinary shares (including ADSs) compared to 4% at December 31, 2002.
– In addition, during 2003, approximately 0.8 million ordinary shares were issued in connection with the exercise of
The Company’s annual interest expense is expected to be approximately €350 million, after taking into account hedging instruments, during each of the next three years. On a consolidated basis, total interest paid in cash in 2003 was €835 million (2002: €894 million, 2001: €913 million) or €600 million after derivative instruments (2002: €641 million).
HOLDING COMPANIES The principal risks managed by holding companies are described below. They are dealt with independently to optimize investment performance.
(life mathematical reserves and Property & Casualty technical reserve) have been estimated using a discounted cash flow approach. This fair value, which varies according to changes in the estimated discount rate, was thus considered to be sensitive to interest rate risk but unaffected by equity price changes.
Credit risks Counterparty credit risk is defined as the risk that a third party in a transaction will default on its commitments. Given the nature of its core business activities, AXA monitors two major types of counterparties, using methods that are adapted to each type: – The investment portfolios held by the Group’s insurance operations (excluding assets backing separate account products where risk is transferred to policyholders) as well as by banks and holding companies. These portfolios give rise to counterparty risk through the equities, bonds and derivative products held.
– Timber production: Increased incidence of forest fires. Reduction in the vitality of trees.
All claims relating to the German insurance market were settled under an inter-governmental agreement reached between Germany and the United States. For France and Belgium, a global settlement with Jewish organizations and the ICHEIC was signed in July 2003. In addition, AXA’s French and Belgian subsidiaries have also contributed to a fund set up by the French and Belgian authorities for insurers. AXA continues to participate in the ICHEIC.
Events Subsequent to December 31, 2003 On September 17, 2003, AXA announced that the Board of Directors of its U.S. subsidiary, AXA Financial Inc., had reached an agreement with the Board of Directors of MONY Group Inc. (“MONY”), a New York based life insurer.
Annuity market, industry sales of variable annuities were up 9.5%, driven by the stronger equity market and the popularity of guaranteed minimum income and death benefits while industry fixed annuity sales decreased 23% as a result of lower interest rates. In the Life Insurance market, variable life insurance sales remained weak. Industry Variable
Sales of Life Insurance products with fixed returns, such as Universal Life, were strong throughout 20031. Industry
Hong Kong. The Hong Kong Life insurance market experienced strong growth in 2003, for the 9 months to September 2003, the market for individual life new business annual premium equivalent increased by 15% compared to the same period in 2002. Despite a partial slowdown in the overall market during the first half of 2003 due to SARS, AXA China
In Health: Ongoing difficulties of the public health insurance system are continuing to push private health insurance.
Other financial services decrease in revenues (– 19.2%) was mainly attributable to AXA Bank Belgium (– 21.8%), as a result of lower revenues on off balance-sheet products, on inter-bank operations and on fixed income portfolio, despite higher volume of mortgage loans.
PROPERTY & CASUALTY The Group combined ratio significantly improved by 5 points to 101.4% or 4 points on a comparable basis2. This improvement was the result of the confirmation of a much improved operational performance in all major countries, partly offset by lower investment income, and induced a sharp increase in underlying earnings by €+527 million to €753 million, or €+446 million on a comparable basis3. Net capital gains decreased by €–101 million to €–234 million, mainly as a result of higher impairment valuation allowances (€–140 million), partly offset by €+54 million higher net realized capital gains (including €+215 million on Crédit Lyonnais shares).
Life & Savings Segment The following tables present the consolidated gross revenues, adjusted earnings and net income attributable to AXA’s
Equity in income (loss) of unconsolidated entities 0 0 0 2 2
Net technical margin decreased by €203 million in 2003 or €218 million on a constant exchange rate basis. This is mainly due to non recurring strengthening of reserves: (i) €138 million across a number of classes of business following a review of mortality and morbidity experience and model refinements, (ii) €52 million due to changes in the valuation of unit liabilities, and (iii) €25 million related to possible endowment mis-selling obligation on a best estimate basis at the date of the closing.
LIFE & SAVINGS OPERATIONS - OTHER COUNTRIES The following tables present the operating results for the other Life & Savings operations of AXA, which include
Adjusted earnings increased by €+21 million to €0.8 million, mainly due to (i) impairment release of €+4 million as compared to an impairment allowance of €–16 million in 2002 (ii) higher fees and revenues by €+2.6 million. In addition, 2003 showed a tax income of €+3 million as compared to €0 in 2002 due to less deferred taxes. This was partly offset by technical reserves reinforcement of €–2 million as compared to technical reserves release of €+3 million in 2002.
Gross written premiums increased by + 6% as a consequence of strong net inflows in personal lines and successful rate increases in all lines of business.
All accident year loss ratio decreased by 0.8 point as a result of an improved current accident year loss ratio and of a more favorable loss reserve development that totaled €+17 million in 2003 as compared to €–6 million in 2002.
– Personal (62% of gross written premiums): premiums increased by 0.9% due to on the one hand, an increase of new business in motor (+116 000 new contracts of the low-cost product line “die Alternative“), and, on the other hand, a decrease in retail liability premiums as a result of a tightening business environment.
– Other (11% of gross written premiums): premiums decreased by 10% due to continued portfolio pruning.
Portugal Gross written premiums increased by 1% to €324 million. This growth was driven by the + 3,4% increase in Motor business (56% of total gross written premiums) mainly reflecting the 9.7% rise in new business as a result of the tight monitoring of sales performance.
(1) AXA Assurance Maroc is 51% owned by the AXA Group.
The net technical result (excluding fees) increased by €+198 million to €+169 million in 2003, mainly explained by the following: – the Property & Casualty net attritional current year loss ratio improved by –7.5 points to 61.9% on a comparable basis1, however not fully offsetting the volume impact due to lower earned premiums; the Property & Casualty net attritional margin on current accident year thus decreased by €–121 million on a comparable basis; – the cost of cover programs decreased by €+127 million to €–301 million, resulting from the reshaping of the protection structure in line with the change in underwriting policy leading notably to a reduced portfolio risk exposure.
Net investment result decreased by €-37 million to €+236 million in 2003, mainly explained by a €–35 million decrease in net capital gains corresponding to (i) a €–65 million decrease in exchange rate result which favorably impacted 2002 accounts and (ii) a €+30 million increase in net capital gains, including an allowance for equity impairments of €–10 million in 2003.
Adjusted earnings increased by €+173 million to €+146 million. The increase was mainly due to an improvement in the combined ratio, partly offset by (i) a €-37 million decrease in the net investment result and (ii) a €–61 million increase in income tax expense.
Operating Income 6 (123) (109) (a) Net of ceded reinsurance (cession and retrocession). (b) Attritional data exclude (i) major losses in claims charge and (ii) covers'cost in ceded premiums. (c) (Attritional claims charge and major losses cost on all accident years) divided by (net earned premiums). (d) (i) Run off entities transferred from AXA Corporate Solutions Assurance to other transnational activities.
(ii) Transfer of AXA Corporate Solutions Insurance US from AXA Corporate Solutions Assurance to AXA RE. (e) Current accident year claims charges (including claims handling expenses) / Current accident year earned revenues (excluding premium adjustments on previous years).
Underlying earnings increased by €104 million to €+31 million, benefiting also from a strong improvement in the net combined ratio.
OTHER Adjusted earnings decreased by €–17 million to €–25 million, mainly due to lower investment result (€–48 million before tax) due to both the decrease of the volumes of reserves of the entities in run-off, and several non-recurring capital gains in 2002, partly offset by lower reserves strengthening.
Assets under Management (“AUM”) were up by €7 billion to €376 billion at December 31, 2003 when compared to December 31, 2002 driven by positive market impact (€71 billion) and net new money (€7 billion) partially offset by adverse exchange rate impact (€–71 billion). On a constant exchange rate the AUM increased by 23%. Net inflows totaled €7 billion and were attributable to net new money of €9 billion, €4 billion and €–6 billion for Institutional,
Belgium Holding companies. Adjusted earnings decreased by €11million as 2002 was impacted by non-recurring elements, mainly for €8 million by a tax settlement and the reversal of depreciation on real estate investments.
(iii) Change in claims reserves, including claims handling costs reserves and equalization reserves, gross of reinsurance,
Minority interests’ share in net income for the financial year 243 368 385
(€15 million) and the sale of Members Equity in Australia (€ 12 million). – A non-recurrent gain of € 66 million in the USA (after adjustment for goodwill amortization) following the review of deferred tax liabilities relating to periods prior to AXA’s acquisition of The Equitable, Inc. The review led to an exceptional € 106 million write-off of goodwill recognized at the time of the buyout of minorities in AXA Financial in 2000.
Funds Services on January 8, 2003. The Group’s share of the resulting capital gain was €12 million net Group share, based on a disposal price of €53 million.
In Germany, on July 1, AXA sold its 49.9% stake in Colonia Re JV to General Re. The agreement ended the successful German joint venture with General Re lasting more than eight years. This move was in line with AXA’s strategy of refocusing on core businesses in Germany. The disposal price was €701 million, and the group’s share of the resulting capital gain was €11 million net Group share.
In September 2003, an announcement was made in the USA that the New York State Attorney General and the SEC
2.Events Subsequent to December 31, 2003 On September 17, 2003, AXA announced that the Board of Directors of its US subsidiary AXA Financial Inc. had reached an agreement with the Board of Directors of MONY, a life insurance company based in New York. The agreement approved a combination of the two companies, with AXA Financial acquiring 100% of MONY for $1.5 billion in cash. As per the agreement, Mony’s shareholders will be granted $31 per share held. This deal forms part of the Group’s global strategy, and will enable AXA Financial to add considerably to its distribution network, to expand its product range, to increase assets under management and to gain highly qualified staff and excellent customer relations. The transaction remains subject to approval by MONY’s shareholders, and to the agreement of the local insurance and banking authorities.
3.2. GENERAL ACCOUNTING PRINCIPLES The consolidated financial statements are prepared in accordance with generally accepted accounting principles in
3.3. CHANGES IN ACCOUNTING PRINCIPLES There were no changes in accounting principles adopted in 2003, whose impact was material for the Group.
If, in subsequent periods, the difference between the appraised value and the net carrying value reaches 15% or more, previously recorded valuation allowances are reversed to the extent of the difference between a) the net carrying value and b) the lower of the appraised value or the depreciated cost.
– Invested assets held by AXA’s banking subsidiaries for trading purposes, for which the change in fair value is recorded in the net investment result.
– Defined contribution plans are characterized by payments made by the employer to institutions (e.g. pension trusts).
Specific to future policy benefits on UK “With-Profit” contracts the future policy benefits for such contracts include 100% of the “Fund for Future Appropriation” (FFA), which principally covers the future terminal bonuses according to the terms of these contracts. The FFA and, therefore, the future policy benefits vary with the change in market value of the assets supporting the participating “With-Profit” funds.
The claims reserves include the claims incurred and reported in the accounting period, claims incurred but not reported
Life & Savings Change Voting Ownership Voting Ownership and Property & Casualty in Scope rights interest rights interest
AXA France Collectives Merger with AXA France Vie – – 99.40 99.39
In application of the article D248-3 of the decree dated January 17, 1986 and of the recommendations issued by the “Commission des Opérations de Bourse” (French stockmarket regulator) in its January 1998 bulletin n° 210, the excess purchase price was charged directly to retained earnings and reserves in an amount of €2,518 million, i.e.
Goodwill from companies accounted for by the equity method – – –
(in euro millions) value value value (a) value value value (a) value value value (a)
At December 31, 2003 Amortized or Net carrying Gross Gross unrealized Fair
Total fixed maturities 162,707 Equity investments (including holdings in mutual funds)
Changes in investment valuation allowances and asset amortization over the last three years have been as follows: /256
Depreciation of real estate used for operating purposes 714 92 – (48) 759
Fixed maturities and other fixed income securities 608 361 (303) (89) 577
AXA Germany affiliates: AXA Asia Pacific Holdings affiliates: – NM Home Loans Trust 65 – (31) 34 –
15. Shareholder’s Equity Changes in consolidated shareholder’s equity in the last three years are presented in the table below: /262
Negative net position: Pension benefits & other benefits (a) 2,167 2,184
On December 8, 2003, the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (the “2003
2002. The main part of purchase accounting provisions booked in 2003 relate to AXA France Vie (€6 million). These provisions were transferred by AXA France Collectives in respect of restructuring costs, and were released in full during the year.
Most of the other provisions (€24 million) took place in the USA, Japan and the UK.
At December 31, 2003, AXA’s consolidated deferred tax assets, net of valuation allowances, included tax benefits attributable to tax loss carry-forwards of €595 million (2002: €737 million). The principal countries and entities with tax loss carry-forwards at December 31, 2003 included Japan (€153 million vs. €327 million in 2002), the UK (€330 million vs. €309 million in 2002), AXA Re (€46 million vs. €2 million in 2002), Morocco (€15 million vs. €37 million in 2002) and Australia and New Zealand (€10 million vs. €39 million in 2002).
Equity in income from affiliated entities 19 24 0 – (2) 1 – 41
The tables below give the split between the operating charges by nature of expenses and by classification. Each classification of operating expenses corresponds to the main functions within an insurance company. Financial services-related expenses incurred by the insurance companies are included under “administrative expenses”.
Life & Property & national Total Mana- Financial Holding elimi- TOTAL (in euro millions) Savings Casualty Insurance Insurance gement Services companies nations
EMPLOYEE DATA The following table presents employee data for AXA for the year ended December 31, 2003: On a comparable basis (77,275 staff at January 1, 2003), the total number of employees fell by 2,691 in 2003, of which 2,401 were in insurance operations. The main contributors to this staff reduction were Australia and New Zealand
Net Income and Adjusted Earnings Per Ordinary Share (diluted) 0.56 0.81 0.55 0.78 0.30 0.70 0.32 0.70 (a) Since 2002, effects of dilutive securities on convertible bonds are not included in the EPS calculation. 2001 data were restated accordingly, to be on comparable basis.
Commitments on sales currently processed 23 40 – – – – – –
Actuary, all or part of the assets transferred are unlikely to be returned in the foreseeable future (taking into consideration the duration of the in force “With-Profit” policies), then the relevant part of the transfer would be designated permanent. Only a permanent transfer to the “With-Profit” funds would result in a charge against the profit and loss account. The maximum amount that could be transferred under the Scheme is capped at the surplus assets from time to time in the non-profit funds, which had a market value of £1.2 billion (€1.7 billion) at December 31, 2003, before taking into account the transfers described below.
Net cash (used in) provided by financing activities 634 (2,126) (1,625)
Cash and cash equivalents beginning of year (net) 16,515 16,018 26,065
Major event known subsequently to December 31, 2003 . . . . . . . . . . . . . . . . . . . . . . . . 320
Under both French GAAP and U.S. GAAP, the impact of a change in enacted tax rates on deferred tax assets and liabilities is recorded in income. Due to certain significant differences in the underlying accounting principles between
The reconciliation of reported and restated 2001 and 2002 statements of income is set out below.
In Other Financial Services, net income Group share was €40 million higher under U.S. GAAP, mainly due to the application of FAS 133 (€+43 million).
(€–67 million), and (iv) a compensation charge arising on the employee stock purchase plan (€–61 million).
CONSOLIDATED NET INCOME IN ACCORDANCE WITH FRENCH GAAP 1,005 949 520
The Group also analyzed the implications of the new standards as regards its operating methods. The Group carried out a number of simulations designed to help it make decisions and to illustrate the options offered by these new standards with respect to current methods. However, some standards that are very important for the Group – particularly IFRS 4, which is the standard for the insurance industry, and IAS 32 and 39, which deal with the treatment of investments held by insurers – are still being developed. As a result, the Group was unable to complete this analysis in 2003. The Group must continue its analysis in order to determine all operational and financial consequences and to take the appropriate action.
Dividends received from subsidiaries amounted to €1,109 million for the year ended December 31, 2003, a decrease of €372 million compared with the previous year.
Allowances for the impairment of financial assets totaled €100 million, including €64 million related to internal IT
Subordinated debt came to €5,504 million compared with €5,623 million in 2002. The decrease was primarily attributable to currency impacts due to the strengthening of the euro against other currencies.
a) After tax income, before depreciation, amortization and changes in reserves 3.87 3.04 0.95 0.62 0.51 b) After tax income, after depreciation, amortization and changes in reserves 3.26 2.54 0.93 0.61 0.49 a) Number of employees – – – – –
AXA DIRECT JAPON 89 (60) 100.00% 195 Ariake Frontier building Tower A 135-0063 Tokyo
Information concerning the share capital of the Company . . . . . . . . . . . . . . . . . . . . . . . 344
The Company was incorporated in 1852. The life of the Company will end on December 31, 2059, unless extended or wound up prior to that date.
Related formalities must be completed at least five days prior to the meeting. However, the Management Board may reduce or waive this requirement, provided that its decision pertains to all shareholders. Accordingly, the AXA
Statutory audit and certification of local and consolidated accounts 19,555 2,235 Other specific audit missions 5,191 461
Other services 3,278 182 Legal, tax and social consulting 3,080 24 Information technology and services 85 – Internal audit – –
Number of shares subscribed at 02/29/2004 (b) 0 0 0 0 0
The global amount of capital increases effected through the issuance of securities representing a share of the Company’s equity, excluding shares reserved for employees and shares resulting from stock options, may not exceed €2 billion.
At the annual general meeting of the shareholders scheduled for April 21, 2004, the shareholders will once again be asked to authorize the Management Board to trade in the Company’s shares, notably for the purpose of stabilizing the market price, under the following conditions: Maximum purchase price .................................................................................. €35
In our capacity as independent auditors of AXA and in accordance with Regulation 98-01 of the Commission des Opérations de Bourse (the French Securities and Exchange Commission), we have verified in accordance with French professional standards, the information concerning the financial position and historic financial statements contained in this annual report (document de référence).
Based on the procedures described above, we have nothing to report regarding the accuracy of the information concerning financial position and the financial statements, as presented in this annual report.