For our distribution channels, this means supplying products they can stand behind, and the training they need to offer sound and objective advice to our customers.
nDeliver on the promise by offering financial advice backed by an enlarged range of financial services and products that includes
Shareholders: n Increase cash EPS by at least 15% a year on average.
Hong Kong AXA China Region beats out 200 insurance companies, winning the Insurer of the Year award bestowed by Capital, a renowned regional business publication.
DLJ to pursue its growth objectives under optimal conditions by aligning with a banking group of the first rank.
nRegular meetings are also held throughout the year with AXA shareholders in France.
At the annual general meeting of shareholders of AXA held on May 9, 2001, AXA’s shareholders approved a 4-for-1 stock split of AXA’s 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
(b) adverse changes in the economy in AXA’s major markets and other adverse developments that may affect the value of AXA’s investments, (c) the use of derivatives and AXA’s ability to hedge such exposures effectively, and (d) counterparty credit risk; • AXA’s ability to develop, distribute and administer competitive products and services in a timely, costeffective 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 and the risk of unanticipated material adverse outcomes in such litigation; • adverse political developments around the world, particularly in the principal markets in which AXA
AXA, please see “Item 5 - Operating and Financial Review and Prospects - Reconciliation of French GAAP to
(j) Excluding separate account (unit linked) assets. (k) Compagnie UAP and its subsidiaries were acquired in a public offer of exchange on January 1, 1997 and, accordingly, UAP’s operating results have been included for the full year ended December 1997. (l) Net income (before exceptional operations and goodwill amortization) divided by the weighted average of shareholders’ equity in the year
Impact of exceptional operations (b) 1,643 156 – Net income excluding impact of exceptional operations 2,261 1,865 1,531 per ordinary share (basic) 5.95 5.28 4.52 per ordinary share (diluted) 5.69 4.98 4.24
(other than commissions) are shared by the relevant members of the AXA group and the Mutuelles AXA and
Suisse Group. Over the last several years, the results of DLJ have been at historically high levels and DLJ was a major contributor to AXA’s growth. For the years ended December 31, 2000 (in which DLJ’s results were included for nine months) and 1999, DLJ contributed 13% and 15%, respectively, of AXA’s gross premiums and financial services revenues and 10% and 11%, respectively, of AXA’s consolidated net income (before the impact of the €2,004 million net realized gain on the disposal of DLJ). Following the disposition of DLJ, AXA will no longer be active in investment banking. The loss of DLJ’s contribution to AXA’s revenues and net income may adversely affect AXA’s future operating results as revenues and net income from the Other Financial Services Segment, which will decrease significantly in future periods.
very strong stock market appreciation, coupled with solid bond market appreciation spurred by declining interest rates. These economic and market trends may not continue, and if they do not, AXA’s net income, revenues and assets will likely decline significantly. For example, in 2000, AXA’s US life operation (Equitable Life) had realized investment losses and valuation allowances totaling $867 million due to writedowns primarily on high yield and emerging market securities held in its fixed maturity portfolio due to broad weaknesses in the credit markets from a slowing US economy during the third and fourth quarter of 2000. AXA may realize additional losses on holdings of such securities or on its other investments in the future.
The tables below summarize certain key financial data by segment for the periods and as at the dates indicated.
AXA’S TOTAL ASSETS UNDER MANAGEMENT (a) At December 31, (in euro millions) 2000 1999 1998
Over the next three years, AXA intends to reach its objectives primarily through organic growth and the successful implementation of its operating strategies. Its operational priorities are as follows.
Ireland, and Germany. As a result of this acquisition, AXA increased its presence in the property and casualty insurance markets in these countries and in the UK health market.
• In 1991, AXA invested $1.0 billion in The Equitable Life Assurance Society of the United States ("Equitable
• In 1997, Equitable Life sold Equitable Real Estate, its wholly owned real estate management subsidiary for
AXA continues to consider opportunities that will increase the size and geographical diversity of its worldwide operations in insurance and asset management. For further details on significant transactions undertaken by
Asia-Pacific Region. Set forth below is a simplified organization chart of AXA as at December 31, 2000. For additional information concerning subsidiaries of the Company, please see note 24 to the consolidated financial statements.
BASED ON WORLDWIDE GROSS LIFE INSURANCE PREMIUMS IN 1999 Country Ranking % of gross AXA’s ranking AXA’s ranking
– Japan. There has been a year-on-year decrease of in-force business since 1996 principally due to weak economic conditions, coupled with well-publicized problems in the banking, brokerage and insurance sectors.
France. After continued annual growth of over 5% in the French property and casualty insurance market between 1992 and 1995, the level of growth in gross premiums written has decreased since 1996. The low level of growth that has persisted in recent years was primarily attributable to a decline in market demand, increased competition and premium rate reductions. Gross premiums in 1999 increased by approximately 2% and the estimated growth in 2000 was 4%. This evolution was mainly due to growth in the French economy and an increase in premium rates on certain lines of business (notably homeowners insurance).
United Kingdom. Both the personal and commercial property and casualty markets in the United Kingdom have experienced limited growth over the last four years although growth has been estimated at 10% for 2000.
AXA Corporate Solutions. This segment also includes the operations of AXA Assistance. The International Insurance
In addition, Alliance Capital provides services to institutional investors including portfolio strategy, trading and brokerage-related services.
The Other Financial Services Segment's operations consisted primarily of Donaldson, Lufkin & Jenrette
AXA Crédit provides short-term loans to customers of AXA’s French insurance operations.
of AXA’s total fixed maturity investments and approximately 96% (1999: 95% excluding Japan) of AXA’s total equity investments.
At December 31, 2000 and in respect of AXA’s significant insurance operations, the insurance-related invested assets backing the insurance liabilities were predominantly holdings in domestic investments (or in the local currency of the liabilities). The breakdown of investments in fixed maturity and equity securities by industry sector were as follows: 40% in government institutions, 20% in financial services, 30% in non-financial services such as manufacturing and pharmaceuticals and 10% in mutual funds.
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 13 to AXA’s consolidated financial statements.
• changes arising from the time lag between the occurrence of the insured event, notification of the claim
AXA does not discount its reserves for claims and claims expenses except 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.
(c) Includes gross reserves of €5.6 billion of GRE, which was acquired in May 1999.
Environmental, asbestos and other related exposures are not material to AXA. Further details are provided in note 12 to the consolidated financial statements included elsewhere in this annual report.
While the extent and nature of regulation varies from country to country, most jurisdictions in which
Paris, France. AXA owns both the building and the underlying land. 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 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.
Statements” provided in the beginning of this annual report and “Item 3-Key Information-Risk Factors” for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in this annual report.
Netherlands decreased by 14% in 2000 as consumers postponed purchases until 2001, when tax reforms will go into effect. Separate account products dominated new business and accounted for 62% of total business volume in the Netherlands.
Japan. In 2000, the life and savings market was affected by four bankruptcies, including the bankruptcies of Daihyaku and Chiyoda. These insurers were plagued by bad loans and a growing gap between the high prospective yields promised to policyholders (before the financial bubble burst) and actual returns on assets supporting the contracts. Gross premiums in the Japanese marketplace decreased by 4% in fiscal year 1999, which ended on March 31, 2000. In 2001, competition is expected to intensify in the health market, as Japan’s seven largest life insurers have the ability now to enter into this market, from which they were previously barred.
Hong Kong. New business in the life and savings market fell by 3%. Separate account products accounted for 20% of total sales, an increase of 125% in one year. The implementation of the new regulation requiring corporations to establish mandatory pension funds in 2000 is expected to create significant sales opportunities in 2001.
(1) On a comparable basis, data for the year ended December 31, 2000 was restated using the prevailing foreign currency exchange rates for the corresponding prior year, in this case for the year ended December 31, 1999 (constant exchange rate basis) and eliminated the results of acquisitions, disposals, business transfers (constant structural basis) and of changes in accounting principles (constant methodological basis), in one of the two periods being compared.
(a) Details on the exceptional operations in 2000 and 1999 are described under “Net income” below. Net income excluding the impact of exceptional operations (that is, before the impact of exceptional operations) represents a non-GAAP measure and, therefore, 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.
Revenue growth from the insurance operations was driven by the Life and Savings Segment (an increase of 8.4% on a comparable basis). Certain countries or regions reported double-digit revenue growth, in particular
Dividends paid to shareholders have increased significantly in the last five years, from €0.99 per ordinary share (or €165 million in the aggregate) paid in 1996 to €2.20 per ordinary share (or €926 million in the aggregate)
Net Income excluding impact of exceptional operations 398 266 266 249
The following table presents the operating results for the life and savings operations in the United Kingdom for the years indicated.
Acquisition expenses (before the change in DAC) totaled €628 million, or a decrease of 3% in 2000 as compared to 1999. Acquisition costs (after the change in DAC) increased by 9%, primarily due to a lower level of acquisition costs deferred. On a comparable basis, adminstrative expenses increased by 3.9% in 2000 as compared to 1999. The ratio of general expenses to gross premiums was 13.8%, or an increase of 50 basis points in 2000 as compared to 1999. The increase was due to costs related to the establishment of AXA Shared Services Limited, an information technology services company, and costs related to the development of a new product line for 2001. The ratio of general expenses to insurance reserves was 1.32% in 2000, as compared to 1.37% in 1999.
In June 2000, Japan’s principal rating agency (Rating & Investment) gave AXA Japan a rating of AA-. In
China Region’s fixed maturity investments following a reallocation of a portion of the equity securities portfolio.
AXA Minmetals started operations in June 1999. AXA’s share of the net loss in AXA Minmetals related primarily to the acquisition and administrative expenses incurred given that this entity is in the development stage of operations.
Insurance benefits and claims remained stable in 1999 as compared to 1998. The minimum guaranteed rate dropped to 3.25% from 4.75% as at January 1, 1999 due to a change in Belgian regulations. In addition,
In 2000, property and casualty gross premiums accounted for 19% of AXA’s consolidated gross revenues and 24% of AXA’s gross insurance premiums compared (1999: 20% and 25%, respectively). Although the property and casualty markets in Europe were characterized as difficult markets, with intense price competition, all countries reported higher levels of business in 2000 as compared to 1999.
and accounted for 10% of gross premiums. Gross premiums written on property insurance decreased by 1.7%
The decrease in acquisition expenses was attributed to the change in gross premiums and the application of a new commission rate schedule. Administrative expenses decreased by €43 million in 1999, before including the €199 million provision relating to the strategic change program being conducted by AXA France. Excluding this provision, the expense ratio was 26.5% in 1999, or an improvement of 100 basis points in 1999 as compared to 1998. In 1998, the expense ratio was adversely affected by additional costs relating to the integration of the property and casualty operations. The combined ratio was 111.3% in 1999 as compared to 104.8% in 1998.
(a) Established on the basis of 12 months of operations for former GRE subsidiaries, which were acquired in May 1999.
In 1999, the net reinsurance ceded represented a charge of €40 million for GRE subsidiaries and a charge of €13 million for AXA Insurance. This can be compared to AXA Insurance’s charge of €34 million in 1998.
OPERATING RESULTS Years ended December 31, (in euro millions) 2000 1999 1998
On a comparable basis, gross premiums written increased by 1.5%. Gross premiums written on automobile insurance increased by 2.5% and accounted for 42% of gross property and casualty premiums in 2000. This increase was primarily due to (i) a 1.6% increase in the personal automobile portfolio from the development of supplemental coverage (excluding casualty) and alternative distribution channels, and (ii) a 7.8% increase in gross premiums written on commercial automobile insurance due to premium rate increases and new motor fleet business. For the automobile insurance portfolio as a whole, new premiums rates that became effective in June 2000 resulted in a 2% increase in the average premium. Gross premiums written on property insurance increased by 2.2% in 2000 and accounted for 21% of gross property and casualty premiums. The increase was due to growth in fire and industrial risks insurance business. The increases were partly offset by a 2.4%
(a) Yields are calculated on the basis of average beginning and end of period asset carrying value for each asset category. (b) Including net investment results from other invested assets not detailed in table above.
The expense ratio increased from 17.3% in 1999 to 18.7% in 2000, primarily due to an increase in commissions on automobile insurance as the Irish government removed the restriction on the amount of on such commissions.
The Netherlands. On a comparable basis, gross premiums written decreased by 1.1% in 1999 as compared to 1998. This decrease was mainly due to a 2.2% increase in gross premiums written on automobile insurance premiums (which accounted for 39% of gross property and casualty premiums), which was more than offset by a 4.8% decrease in gross premiums written on fire insurance cover (which accounted for 32% of gross property and casualty premiums) as a result of a decision taken by AXA to follow the Year 2000 recommendations of the
Other countries provided a net loss of €14 million in 1999, as compared to a net loss of €1 million in 1998, as follows: Portugal, €8 million (compared to €4 million in 1998); Austria and Hungary, €8 million (compared to €11 million in 1998); Luxembourg, €4 million (compared to €2 million in 1998); Switzerland, €2 million (compared to €2 million in 1998); Turkey, €4 million; and the Asian subsidiaries, a loss of €40 million (compared to a loss of €20 million in 1998), including a loss of €30 million from the direct marketing insurance company that was established in Japan in 1998 and began operating in 1999.
The claims ratio for all accident years improved by 1,190 basis points to 75.7% in 2000. The current accident year claims ratio improved due to the absence of major catastrophes (which had an impact of €99 million in 1999) and significant business growth. There was unfavorable loss reserve development of €63 million in 2000, which included €34 million on the special risks portfolio and €27 million in respect of the December 1999 storms in Europe. In addition, €33 million of catastrophe equalization reserves were released in 2000 as compared to €41 million in 1999.
In 2000, the net income generated by the Other Financial Services Segment represented 3% of AXA’s consolidated net income (1999: 11%). The contribution principally related to DLJ.
Margins on credit transactions dropped as a result of strong competition but were offset by favorable European interest rates in 1999.
Company), AXA France Assurance, AXA Financial, AXA Asia Pacific Holdings, and AXA UK Holdings (formerly
(excluded from (b) in the table above) and AXA’s Belgian holding company recorded a net gain of €50 million
AXA Financial, Inc. A gain was recorded by AXA Financial, Inc. in 1999 relating to the offering of tracking stock in DLJdirect of €64 million net income (group share).
French subsidiaries have contributed to the “Fonds pour la Mémoire”, a Holocaust-related initiative of the French authorities. This contribution, which is based on market share during the Holocaust era, was €3.5 million of the total €10.5 million contributed by the French insurance industry.
At December 31, 2000, the aggregate principal payments required to be made on maturing long term operating and financing debt and mezzanine capital (other than mandatorily convertible bonds and notes) for 2001 and the four years and thereafter amounted to €1.3 billion, €0.4 billion, €3.3 billion, €0.4 billion, €1.0 billion, and €8.9 billion, respectively. Off-balance sheet commitments are discussed in note 17 to the consolidated financial statements.
AXA has obligations that are not, under French GAAP, characterized or classified in the consolidated balance sheet as debt or equity capital. These funds, referred to as mezzanine capital, include subordinated debt and mandatorily convertible bonds and notes.
AXA and increased shareholders’ equity and decreased subordinated debt by €282 million.
AXA’s operating debt is primarily comprised of borrowings principally used by the financial service subsidiaries to provide working capital.
On a consolidated basis at December 31, 2000 AXA had outstanding short term and long term operating debt of €4,445 million, or a decrease of €7,239 million from €11,684 million at December 31, 1999.
European subsidiaries operate, require that life and property & casualty insurance companies are subject to capital adequacy and solvency margin requirements. The primary objective of the solvency margin requirement is to protect policyholders. Each of AXA’s French and other European subsidiaries is in compliance with its applicable solvency requirements. In addition, a European Directive dated October 27, 1998, require a consolidated solvency calculation effective for periods ending on or after December 31, 2001. For the time being this is not implemented under French law.
Net cash used in investing activities in 1999 was €36.7 billion (1998: €10.7 billion). The increase in cash used in investing activities primarily related to an increase in the insurance-related invested assets, mainly in separate account assets.
The operating, investing and financing activities described above, as well as the impact of foreign exchange and change in scope of consolidation, resulted in an increase in cash and equivalents of €3.7 billion in 1999
representing one-half of an ordinary share to one ADS representing one ordinary share.
Member of the Management Board Group Executive Vice President, Finance, Control and Strategy
The Selection Committee recommends nominees to the Supervisory Board and the Management Board, nominates their respective Chairman and Vice Chairman and other members as well as Chairmen of all Sub-
(1) Directors fees received from AXA group companies and from companies outside the AXA Group where such individual served as a representative of the AXA group.
The information contained in this Item 9 is on a pre-stock split basis and does not reflect the corresponding change in the ratio between the AXA ADS and ordinary shares.
Securities listed on the ParisBourse are traded on one of three markets. The securities of most large public companies, including AXA, are traded on the premier marché. Securities of small and medium sized companies are traded on the second marché. Securities of certain other companies maybe traded on the nouveau marché.
A fee is charged for this service. As for all other fees, intermediaries set the applicable rate freely without the intervention of market authorities. Intermediaries are entitled to refuse deferred settlement instructions, whether to buy or to sell. The AXA ordinary shares are eligible for clearance through the Deferred Settlement Service.
The Bank of New York serves as depositary with respect to the AXA ADSs traded on the New York Stock
Pursuant to article 12.3 of AXA’s statuts, the Management Board must obtain the prior authorization of the Supervisory Board to enter into any of lines of credit that exceed a specified amount (currently 160 million
(i) financing transactions that are likely to substantially alter the financial structure of AXA, or (ii) the issuance of instruments giving direct or indirect access to the equity capital of AXA. The approvals or prior authorizations granted to the Management Board under article 12-3 of AXA statuts must be listed in the minutes of the meetings of the Supervisory Board and of the Management Board.
intermediary with SICOVAM. That account is separate from the AXA share account. Each accredited financial intermediary will maintain a record of ordinary shares held through it and may issue certificates of registration with respect to these shares. If this alternative is adopted, the ordinary shares are referred to as being in bearer form, although no bearer document of title is issued by or on behalf of AXA with respect to them. Ordinary shares held in bearer form may only be transferred through accredited financial intermediaries.
In addition, the statuts of AXA provide that any individual or entity acting alone or in concert with others, that acquires ordinary shares resulting in a direct or indirect holding of 0.5% or more of the outstanding share capital or voting rights of AXA, including through the acquisition of AXA ADRs representing the AXA ADSs, must notify AXA by registered letter with return receipt requested within five calendar days of the date of the acquisition
Pursuant to its statuts, AXA may obtain from SICOVAM, at AXA’s own cost, at any time and according to the provisions of French company law, any information relating to the identity of the holders of ordinary shares and other equity-linked securities with the right to vote in general meetings of shareholders as well as the number of ordinary shares or other equity-linked securities held by any of them.
AXA ordinary shares as of any time, together with all other securities, cash and property received by the depositary or the custodian in respect of these securities and at such time held under the deposit agreement, as the “Deposited
Securities”. Only persons in whose names ADRs are registered on the books of the depositary will be treated by the depositary and AXA as ADR holders.
Unless requested in writing by AXA to cease doing so and subject to the provisions of the deposit agreement, the depositary may execute and deliver ADRs prior to the receipt of AXA ordinary shares and deliver AXA ordinary shares upon the receipt and cancellation of ADRs which have been pre-released. The depositary may receive
• which would be, to the actual knowledge of the depositary, required to be registered under the Securities
Upon any change in nominal value, split-up, consolidation or other reclassification of Deposited Securities, or upon any recapitalization, reorganization, merger, consolidation or sale of assets affecting AXA or to which
AXA is a party, any securities received by the depositary or the custodian in exchange for, conversion of, replacement or otherwise in respect of Deposited Securities will, subject to the deposit agreement and applicable laws, including the Securities Act, be treated as new Deposited Securities under the deposit agreement, and each ADR will, subject to the deposit agreement and applicable laws, including the Securities Act, represent an appropriately adjusted proportional interest in the Deposited Securities so received in exchange or conversion or replacement or otherwise, unless additional or new ADRs are delivered pursuant to the following sentence. In any such case the depositary may, and shall, if AXA so requests, execute and deliver additional ADRs as in the case of a stock dividend on the AXA ordinary shares, or call for the surrender of outstanding ADRs to be exchanged for new
In the event of any waiver, the relevant issuance of securities must be completed within the period prescribed by law, and the AXA Management Board may offer existing holders of shares a non-transferable priority right to subscribe to the new securities issued during a limited period of time. Preferential subscription rights, if not previously waived, are transferable during the subscription period relating to a particular offering and may be quoted on the ParisBourse.
French law provides that at least 30 days prior to the date set for any meeting of shareholders, that meeting must be announced by means of a preliminary notice published in the BALO. The notice must indicate the type, agenda, place, date and time of the meeting.
Under the Treaty, an “Eligible U.S. Holder” is a U.S. Holder whose ownership of AXA ordinary shares or
• is entitled to Treaty benefits under the limitation on benefits provisions of Article 30 of the Treaty, and
In the case of an Eligible U.S. Holder, if the full withholding tax rate of 25% is applied because, for instance, the procedures described under “French TaxesñTaxation of Dividends Procedures to Obtain Treaty Benefits” are not complied with by the dividend payment date, the refundable portion of the tax withheld by AXA or the
National Mutual Life (principally in Australia) and AXA China Region (Hong Kong), (iv) AXA Colonia Konzern
– In October 2000, Alliance Capital acquired substantially all of the assets and assumed substantially all of the liabilities of Sanford C. Bernstein, Inc., a U.S.-based asset management company, and, therefore, three months of net income were included in AXA’s consolidated net income.
the Company to partly finance an acquisition, a portion or all of the goodwill can be charged directly to retained earnings and reserves (in proportion to the value of shares issued to total purchase price). The value recorded in retained earnings and reserves will remain unchanged unless there is a dilution of ownership interest in the acquired company (see “Net Investment Results” below). Any remaining goodwill not charged directly to retained earnings and reserves will be recorded as a goodwill asset and will be amortized over a period not to exceed 30 years for insurance operations, 20 years for asset management operations and five years for brokerage operations.
If the goodwill is less than €10 million (€1.5 million for brokerage operations), then the goodwill asset is fully amortized in the year of acquisition.
AXA also writes participating life insurance contracts whereby the policyholder has the right to participate / share in the investment returns / profits earned by the insurance company. Participation rights of participating contracts issued by AXA vary by contract and by the country in which the contract is issued.
AXA operates, AXA establishes “catastrophe equalization reserves”. Catastrophe equalization reserves are established by line of business in accordance with the local regulation and defer a portion of income to future periods to be earned when future catastrophic losses, such as nuclear incidents, storms, floods and pollution liability occur. Subject to regulatory limitations, management determines amounts added to or subtracted from the catastrophe equalization reserves.
Derivative instruments that are not effective or not designated as a hedge are generally presented under the balance sheet caption “Broker-dealer related receivables” or “Broker-dealer related payables”. These derivative instruments are stated at estimated fair value with the changes in fair value recorded in the net investment results.
New Zealand, Germany and Belgium, which accounted for 90% of total fixed maturity investments and 96%
was attributed to the life insurance operations (being amortized over 30 years) and 20% was attributed to the asset management operations (being amortized over 20 years).
Following AXA Financial’s investment in Alliance Capital and the acquisition of Sanford C. Bernstein, Inc.
At December 31, 2000, aggregate maturities of long term operating debt based on required principal payments at maturity for 2001 and the succeeding four years amounted to €143 million, €69 million, €141 million, €nil and €43 million, respectively, and €139 million in 2006 and thereafter.
The significant movements in the tables above arose from the acquisition of Nippon Dantai in 2000, which has defined benefit pension plans that are underfunded.
AXA provides, certain medical and life insurance benefits (“post-retirement benefits’’) to qualifying employees, managers and agents who retire after having met certain age and service requirements, principally in the U.S.
operations. The life insurance benefits are related to age and salary at retirement.
If the health care cost trend rate assumptions were increased by 1%, the accumulated postretirement benefits obligation as at December 31, 2000 would be increased by 3.5%, representing a 3.5% increase on the sum of the service cost and interest cost. If the health care cost trend rate assumptions were decreased by 1%, the accumulated postretirement benefits obligation as of December 31, 2000 would be decreased by 4.4%.
Payments: Claims and claims expenses attributable to current year 4,992 1,856 4,851 1,415 3,205 1,338
There are significant uncertainties that affect the insurance companies’ ability to estimate future losses for these types of claims and there are a number of issues now being litigated, which may ultimately determine whether and to what extent insurance coverage exists. Additionally, possible changes in the U.S.
FRENCH SAVINGS CONTRACTS French Savings Contracts (ACAV and ACAVI) are supported by investments in the form of mutual funds or real estate funds (collectively referred to as funds) generally established by AXA. Real estate funds consist of non-listed real estate companies or real estate joint ventures. The funds issue shares at fair value, which form the underlying investments of French Savings Contracts.
Net Income Per Ordinary Share (diluted) – 9.74 – 5.40 – 4.24
(particularly AXA Financial, Equitable Life and Alliance Capital) are involved in various other types of lawsuits (both class action and individual) involving actions arising from the ownership and/or management of real estate and other types of investments, various corporate transactions (including the sale of DLJ in 2000 and the restructuring of Alliance Capital in 1999), employee benefit disputes, alleged discrimination in employment practices, as well as other matters which are described in the Annual Reports on Form 10-K for the year ended December 31, 2000 of
In most cases, the amounts available for dividends from the AXA’s insurance subsidiaries are limited to the accumulated earnings calculated using the subsidiaries’ historical statutory basis of accounting. These amounts can be further limited based on the discretion of the insurance regulators in each country in which AXA operates.
AXA Nichidan. In connection with AXA’s acquisition of Nippon Dantai as described in note 6 “Business
• In connection with an acquisition of a target company, not of a minority interest, under both French GAAP
STOCK-BASED COMPENSATION Details on stock options in respect of AXA are provided in note 20 “Stock Options”.
The weighted average fair value per option granted by the Company in 2000, 1999 and 1998 was
Years ended December 31, (in Euro millions except for per share data) 1999 1998
NET INCOME Years ended December 31, (in euro millions) 2000 1999 1998