Other intangible assets also include trademarks or customer relationships recognized as a result of business combinations, subject to the fact that their fair value can be measured reliably and it is probable that future economic benefits attributable to the assets will flow to the Company. They are carried at cost. If these assets have a finite useful life, they are amortized over their estimated life using the straight-line method. In all cases, they undergo an impairment test at each accounts closing. In the event of a significant decline in value, a valuation allowance is booked for the difference between the value on the balance sheet and the higher of value in use and market value.
The variable costs of acquiring new and renewal insurance and investment contracts with discretionary participating features, primarily related to the production of new business are specifically identified and deferred by establishing an asset (DAC). This asset is amortized based on the estimated gross profits emerging over the contract term. In conjunction with the liability adequacy test (see section 4-11) this asset is tested for recoverability: estimates of gross profits are reviewed at the end of each accounting period and any amount not deemed recoverable from future estimated gross profits is recorded as a charge against income. For investment contracts without discretionary features, a similar asset is created (DOC) but limited to incremental costs directly attributable to the right to provide asset management services. This asset is amortized in proportion of all estimated level fees collected over the life of the contracts The amortization of the DOC is reviewed at each closing date to reflect changes in assumptions and experience. and tested for recoverability . DAC and DOC are reported gross of unearned revenues and fees reserves. These unearned revenues and fees reserves are separately recognized as liabilities and are amortized over the contract term using the same amortization basis used respectively for DAC and DOC.
Investments include investment real estate properties and financial instruments including equity securities, fixed term securities, and loans.
Investment properties (excluding investment properties backing totally or partially contracts liabilities where the financial risk is borne by policyholders) are accounted for at depreciated cost, the components being depreciated over their estimated useful life, taken into consideration their residual value at the end of the useful life if the residual value may be reliably estimated.
Valuation allowances are recorded for a decline in the value of a property that is deemed to be other-thantemporary. When the appraised value is 15% lower than the net carrying value, the present value of the asset’s future estimated cash flows is calculated. If the calculated amount is lower than the net carrying value, a valuation allowance is recorded, equal to the difference between (a) the net carrying value and (b) the higher of the appraised value or the discounted cash flow value. 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 (before impairment).
Investment properties backing totally or partially contracts liabilities where the financial risk is borne by policyholders, are accounted for at fair value with changes in fair value recorded in profit or loss.
In practice, assets held through mutual funds are classified either: – as assets of the “Core Investment Portfolios” which includes assets held for backing insurance and investment contracts liabilities, based on AXA asset allocation which is driven by ALM strategy or
For fixed maturity securities, a valuation allowance is recorded through income statement for a decline in value of a security if the amount may not be fully recoverable due to a credit event relating to the security issuer. If this risk is eliminated or improves, the valuation allowance may be reversed. The amount of the reversal is recognized in the income statement.
For equity securities classified as available for sale, a significant or prolonged decline in the fair value of the security below its cost is considered in determining whether the securities are impaired. That is the case for equity securities with unrealized losses for a continuous period of 6 months or more prior to the closing date or higher than 20% of the carrying value at the closing date. If any such evidence exists for available-for-sale financial assets, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in the income statement – is removed from equity and recognised in the income statement. Impairment losses recognised in the income statement on equity instruments are not reversed through the income statement until the asset is sold or derecognised.
4.8. Assets backing contracts liabilities for which the financial risk is borne by the policyholders
Insurance or investment contracts liabilities where the financial risk is borne by the policyholders are presented in a separate caption of the balance sheet. The assets backing those liabilities are symmetrically presented in a specific caption on the asset side of the balance sheet. This presentation is relevant for the users and consistent with the order of liquidity recommended by IAS 1 for financial institutions since the risks are borne by policyholders, whatever the nature of assets backing the liabilities, properties, fixed maturity securities or equity securities. A breakdown by nature of assets is disclosed in the notes to the financial statements.
Derivatives are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at their fair value. The unrealized gains and losses are recognised in the profit and loss account unless they are in a qualifying hedge relationship further described below. The Group designates certain derivatives as either: (i) hedges of the fair value of recognised assets or liabilities or of a firm commitment (fair value hedge); (ii) hedges of highly probable forecast transactions (cash flow hedges); or (iii) hedges of net investments in foreign operations. The Group documents at inception of the application of the hedge accounting the hedge relationship, as well as its risk management objective and strategy for undertaking various hedge transactions. The Group also documents its assessment of hedge effectiveness, both at hedge inception and on an ongoing basis, indicating whether the derivatives that are used in hedging transactions are expected to be and have been highly effective in offsetting changes in fair values or cash flows of hedged items.
Cash flow hedge The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in equity. The gain or loss relating to any ineffective portion is recognised immediately in the income statement. Amounts accumulated in equity are recycled to the income statement in the periods in which the hedged item affects profit or loss (for instance when the hedged forecast transaction takes place).When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity until the forecast transaction ultimately affects the income statement.
For balance sheet presentation, derivatives are netted against the assets or liabilities for which they are used, regardless those derivatives meet the criteria for hedge accounting. Detailed amounts are disclosed in the notes to financial statements.
In some insurance or investment contracts, the financial risk is borne by policyholders. Such kind of contracts usually comprises unit-linked and separate accounts contracts.
The Group classifies its insurance and investments contracts into six categories: - liabilities arising from insurance contracts, - liabilities arising form insurance contracts where the financial risk is borne by policyholders, - liabilities arising from investment contracts with discretionary participating feature, - liabilities arising from investment contracts with no discretionary participating feature, - Liabilities arising from investment contracts where the financial risk is borne by policyholders and with discretionary participating feature, corresponding to unit linked funds of multi funds contracts containing a non unit linked fund with a discretionary participating feature, - Liabilities arising from investment contracts where the financial risk is borne by policyholders and without participating.
4.11.2. Insurance contracts and Investment contracts with discretionary participating feature (DPF)
Unearned premium reserves Unearned premium reserves represent the portion of gross premiums written which has not yet been earned in the period. A portion is included in income over the periods benefited, as the portion of the unearned premium reserve earned in the period is calculated on a pro rata basis in proportion to the insurance still in force at period-end.
The liability for investment contracts with discretionary participation feature (previously named “savings contracts” under AXA accounting policies), in which there is minimal mortality or morbidity risk, is determined using the prospective method with locked-in discount rates which leads to similar results as the retrospective or account balance approach.
The discount rates used by AXA do not exceed the conservatively estimated future yield of the investments backing those liabilities.
In respect of participating life insurance contracts, the future policy benefit liability includes a value attributable to anticipated participation rights arising from the operating results or net investment return for the period.
Both traditional life insurance contracts and investment contracts with discretionary participation feature, if the contracts include a minimum guaranteed rate of return, the insurance liability will also include a provision necessary to cover the guarantee in the event that the future returns are insufficient.
Reserves for additional guarantees in respect of contracts where the financial risk is borne by policyholders and classified as insurance contracts because of these features are determined using a prospective approach except when those guarantees are subject to a risk management program based on futures (see below). The current value on future benefit obligations to be paid to the policyholder in the event that the guarantee is triggered is estimated on the basis of reasonable scenarios. The assumptions include an investment return and related volatility, surrender rates and mortality. This current value of future benefit obligations is set up as a provision such that the total average cost of the guarantees is recognized over the contract life.
Certain additional guarantees such as Guaranteed Minimum Death or Income Benefit (“GMDB” or “GMIB”) or some performance guarantees offered by reinsurance treaties are subject to a risk management program based on futures: in order to reduce the accounting mismatch between the valuation of liabilities and the valuation of the related derivatives, AXA has elected the option opened by IFRS 4.24 for selective re-measurement of the reserves at current market assumptions. This change in accounting policy has been applied for the first time adoption of IFRS as of January 1, 2004 IFRS transition date for the blocks of contracts that were part of the risk management program at that date. Each block of contracts that are covered by this program at a later date is remeasured on market conditions basis as from the date of the extension of the program.
Insurance claims and claims expenses (Non life insurance) The claims reserves are determined on a basis to cover the total cost of settling an insurance claim. With the exception of disability annuities, for which the payments are fixed and determinable, the claims reserves are not discounted. The claims reserves include the claims incurred and reported in the accounting period, claims incurred but not reported (“IBNR”) in the accounting period and costs associated with the claims settlement management. The claims reserve is based upon estimates of the expected losses and unexpired risks for all lines of business taking into consideration management’s judgment on the anticipated level of inflation, regulatory risks and the trends in cost and frequency of claims, actual against estimated claims experience, other known trends and development, and local regulatory requirements.
In case of unrealized losses, a deferred participating asset (DPA) should be recognised only to the extent that its recoverability is highly probable. That could be the case if the DPA would be offset against future participating either directly through deduction of the DPA from future capital gains or indirectly through deduction of future loads on premiums or margins.
Unrealized gains & losses on assets - classified as trading or fair value through profit or loss are accounted for in Income Statement with shadow accounting adjustment through income statement and - classified as available for sale accounted for at fair value with change in fair value in shareholders’ equity are booked through equity with shadow accounting adjustment through equity.
Liability adequacy test At balance sheet date, liability adequacy tests are performed at each consolidated entity level to ensure the adequacy of the contract liabilities net of related DAC and VBI assets. In performing these tests, entities group contracts together considering the manner in which they are acquired, serviced and have their profitability measured; besides, entities use current best estimates of all future contractual cash flows and claims handling and administration expenses, as well as those resulting from embedded options and guarantees and investment income from the assets backing such liabilities. Risks (insurance risk, asset return risk, inflation risk, persistency, adverse selection…) directly related to the contracts that might mean the net liabilities are inadequate, are considered.
Any deficiency is immediately charged to profit or loss initially by writing off DAC or VBI and by subsequently establishing a provision for losses arising from liability adequacy test. In the specific case of non life insurance contracts, an unexpired risk provision is established for contracts on which the premiums are expected to be insufficient to cover expected future claims and claims expenses.
Unearned fees reserves Origination fees representing up-front charges for future services are recognised as a liability and amortised into income using the same assumptions to amortise deferred origination costs (DOC). Unearned fees reserves are also named deferred origination fees.
Current income tax expense (benefit) is recorded in earnings on the basis of amounts estimated to be payable or recoverable as a result of taxable operations for the current year based on the relevant local tax regulation.
Pension and other post-retirement benefits include the benefits payable to AXA Group employees when they retire (departure compensation, additional pension, medical cover). In addition, a provision for long-service benefits is recorded. In order to meet pension liabilities, some regulations have allowed or imposed the establishment of dedicated funds (plan assets). - Defined contribution plans are characterized by payments made by the employer to institutions (e.g. pension trusts). These payments free the employer of any further commitment; the institutions are responsible for paying acquired benefits to the employee. The contributions paid by the employer are recorded as an expense in the income statement and no liability needs to be recorded.
- Defined benefit plans are characterized by an actuarial assessment of the commitments based on each plan’s internal rules. The present value of the future benefits paid by the employer, known as the PBO (Projected Benefit Obligation), is calculated annually using the projected unit credit method. It is valued on the basis of long-term projections (salary increase rate, inflation rate, mortality, turnover, pension indexation and remaining service lifetime). The amount recorded in the balance sheet for employee benefits is the difference between the Projected Benefit Obligation and the market value at balance sheet date of the corresponding invested plan assets after adjustment for any unrecognized losses or gains and past service costs. If the net result is negative, a provision is recorded in the balance sheet under the provision for risks and charges. If the net result is positive, a prepaid asset is recorded in the balance sheet Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in equity in full on the period in which they occurred. Similarly, any adjustment arising from the asset ceiling is recognised in equity. Pastservice costs are recognised immediately in income, unless the changes to the pension plan are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the past-service costs are amortised on a straight-line basis over the vesting period.
Group’s compensation plans are predominantly equity-settled plans. All equity-settled stock-option plans granted after November 7, 2002 and not fully vested as at January 1, 2004 are accounted for at fair value at the grant date and the fair value is accrued over the vesting period.
Cash settled-plans are valued at fair value re-measured at each balance sheet date with any change in fair value recognised in the Income Statement. The AXA Shareplan issued under specific French compensation scheme includes two options: a classic option and a leverage plan. The cost of the classic plan is valued according to the specific guidance issued by the CNC (“Conseil National de la Comptabilité”). The cost of the leverage plan is valued by taking into account the restriction over five years for the employee, as in the classic plan, but adding to this cost the opportunity gain implicitly provided by AXA by enabling its employees to benefit from an institutional derivatives' pricing vs. a retail pricing.
Restructuring provisions not related to a business combination are recorded when the Group has a present obligation evidenced by a binding sale agreement or a detailed formal plan whose main features are announced to those affected.
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation, and the amount of the provision has been reliably estimated.
Gross written premiums correspond to the amount of premiums written on business incepted in the year with respect to both insurance contracts and investment contracts with discretionary participating feature by insurance and reinsurance companies, net of policy cancellations and gross of reinsurance ceded. In the reinsurance sector, the premiums are recorded on the basis of declarations made by the ceding company and may include estimates of gross premiums written but not yet reported in the period, which are adjusted in future periods to reflect actual gross premiums written and ceded to the reinsurer.
The net investment result in respect of insurance activities includes: - Investment income from the insurance-related invested assets, net of depreciation expense on real estate investments (depreciation expense on real estate not held for investment is included in administrative expenses); this item includes the interests calculated using the effective interest method for the assets with fixed maturity and dividends received on equity instruments, - Financial charges and expenses, - Realized investment gains and losses net of valuation allowances for investment impairment, and - Unrealized investment gains and losses on invested assets valued at fair value with change in fair value recognized through Profit or Loss. In respect of banking activities, interest income and financial charges including interest expenses are included in net revenues from banking activities and bank operating expenses, respectively. From time to time subsidiaries that are not wholly owned by AXA may issue additional capital. As a result, AXA’s ownership interest in that subsidiary decreases and a dilution gain or loss arises. This gain or loss is recorded in the net investment result. This gain or loss corresponds to the variation of the equity portion of the subsidiary before and after the operation.
The main changes in the scope of consolidation during the period are stated in the table below.
Germany AXA Euro Dividend L Entry 100,00% 92,19% - AXA Euro Dividend S Entry 100,00% 92,19% - Turkey
AXA Oyak Hayat Sigorta (Life) (a) 100,00% 50,00% 100,00% 50,00% AXA Oyak Sigorta (Non Life) (a) 100,00% 35,48% 70,91% 35,45% Asia AXA Insurance Singapore (Life) (a) 100,00% 100,00% 100,00% 100,00% AXA General Insurance Hong Kong (Non Life) (a) 100,00% 100,00% 100,00% 100,00%
Fees and charges relating to investment contracts with no participating f 216 - - - - - - 216
Net revenues from banking activities - 0 - - 199 3 (6) 196
Change in financial instruments impairment (97) (40) (7) (0) (5) (18) - (168) Net investment result excluding financing expenses 10 037 904 207 10 41 71 (205) 11 065 Technical charges relating to insurance activities (5) (26 524) (5 896) (1 305) - - - 42 (33 683) Net result from outward reinsurance (4) (342) (296) - - - 56 (585)
(1) Excludes insurance and banking activities (2) Net of investment management costs (3) Includes impairment write back on invested assets after sale (4) Excludes impairment write back on invested assets after sale (5) Includes changes in liabiities arising from insurance contracts and investment contracts (with or with no participating feature) where the financial risk is borne by policyholders (6) Includes acquisition costs and change in deferred acquisition costs relating to insurance contracts and investment contracts with discretionary participating feature as well as change in rights to future management fees relating to investment contracts with no participating feature (7) Notably includes financial charges in relation to other debt instruments issued and bank overdraft (8) Net balance of income and expenses related to derivatives on financing debt (however excludes change in fair value of these derivatives) (9) Includes change in impairment and amortization of intangible assets as well as negative goodwill
Net revenues from banking activities - - - - 232 - (7) 225
Change in unearned premiums net of unearned revenues and fees (119) (1 217) (643) - - - 36 (1 943)
Net realized investment gains and losses (3) 1 815 237 56 15 (5) (27) (0) 2 091 Change in fair value of financial instruments at fair value through profit and loss 4 376 16 (11) (3) (36) 10 1 4 354
Change in financial instruments impairment (79) (25) (3) (0) 5 (2) - (104) Net investment result excluding financing expenses 12 295 1 056 238 21 3 177 (191) 13 600 Technical charges relating to insurance activities (5) (29 334) (6 137) (1 482) - - - 2 (36 951) Net result from outward reinsurance 53 (304) (130) - - - 80 (302)
Other operating income and expenses (32 501) (8 948) (1 910) (1 322) (194) (171) 291 (44 754) Net income from operating activities, gross of tax 1 586 1 282 237 409 42 7 (160) 3 402 Income arising from investments associates - Equity method 4 1 1 - 2 0 - 9
Non controlled investment funds available for sale 2 923 2 923 0,67% 159 159 1,55% 3 081 3 081 0,69% Non controlled investment funds at fair value through Profit and Loss 2 186 2 186 0,50% 27 27 0,27% 2 213 2 213 0,50% Non controlled investment funds held for trading 251 251 0,06% - - 0,00% 251 251 0,06%
Loans designated as at fair value through P&L 148 148 0,03% - - 0,00% 148 148 0,03%
Macro hedge and speculative derivatives - - 0,00% 99 99 0,97% 99 99 0,02%
Assets backing contracts where the financial risk is borne by policyholders 127 355 127 355 29,38% - - 0,00% 127 355 127 355 28,70%
NB: Each investment caption is presented net of hedge derivatives (IAS 39) and economic hedge derivatives which are recognized as hedge in the meaning of IAS 39 (excluding macro hedge derivatives and other derivatives). Detail effect of derivatives is presented in the note 23 "Derivative instruments" (1) Mainly Includes Policy loans (2) Excluding investments backing contracts where the financial risk is borne by policyholders
Fixed maturities held to maturity - - 0,00% - - 0,00% - - 0,00% Fixed maturities avilables for sale 164 650 164 650 41,76% 6 577 6 577 58,02% 171 227 171 227 42,22% Fixed maturities at fair value through profit and loss 41 886 41 886 10,62% 1 197 1 197 10,56% 43 083 43 083 10,62% Fixed maturities held for trading 4 4 0,00% 1 620 1 620 14,29% 1 624 1 624 0,40% Non quoted fixed maturities (amortized cost) 26 23 0,01% 2 2 0,02% 29 26 0,01%
Equity securities available for sale 22 249 22 249 5,64% 642 642 5,66% 22 891 22 891 5,64% Equity securities at fair value through Profit and Loss 16 847 16 847 4,27% 39 39 0,34% 16 886 16 886 4,16% Equity securities held for trading 258 258 0,07% 96 96 0,85% 354 354 0,09%
Non controlled investment funds available for sale 2 920 2 920 0,74% 65 65 0,58% 2 985 2 985 0,74% Non controlled investment funds at fair value through Profit and Loss 2 093 2 093 0,53% 45 45 0,40% 2 138 2 138 0,53% Non controlled investment funds held for trading 232 232 0,06% - - 0,00% 232 232 0,06%
Other assets held by consolidated investment funds designated as at fair value through P&L 596 596 0,15% - - 0,00% 596 596 0,15%
Macro hedge and speculative derivatives (242) (242) -0,06% 536 536 4,73% 294 294 0,07%
Assets backing contracts where the financial risk is borne by policyholders 112 387 112 387 28,51% 112 387 112 387 27,71%
Financial assets (excl. those backing contrats with financial risk borne by policyholders) 284 992 281 863 71,49%
Changes in reserves for impairment and amortization of real estate properties were as follows: Gross value (gross of impairment and amortization) (1)
Investment property at amortized cost 9 243 (1 325) (236) 7 683 10 293 Investment property at fair value 4 550 4 550 Macro hedge and speculative derivatives
Investment property at amortized cost 66 (4) (0) 62 84 Investment property at fair value - Macro hedge and speculative derivatives - -
Amortized cost (1) Fair value Net book value (2) Unrealized gains Unrealized losses Amortized cost (1) Fair value Net book value (2)
Amortized cost (1) Fair value Net book value (2) Unrealized gains Unrealized losses
Fixed maturities held to maturity - - - - - - - - - - - - - - Fixed maturities available for sale 166 689 182 891 182 891 17 785 1 584 5 857 5 925 5 925 70 1 172 545 188 816 188 816 17 855 1 584 Fixed maturities designated as at fair value through P&L 42 623 42 623 1 137 1 137 43 760 43 760 Fixed maturities held for trading 4 4 1 551 1 551 1 555 1 555 Non quoted fixed maturities (amortized cost) 22 22 22 - - 2 2 2 0 - 24 24 24 0 -
Other assets held by consolidated investment funds designated as at fair value through P&L 1 792 1 792 - - 1 792 1 792
Fixed maturities held to maturity - - - - - - - - - - - - - - Fixed maturities available for sale 152 552 164 650 164 650 13 025 928 6 525 6 577 6 577 52 1 159 077 171 227 171 227 13 078 928 Fixed maturities designated as at fair value through P&L 41 886 41 886 1 197 1 197 - - 43 083 43 083 - Fixed maturities held for trading 4 4 1 620 1 620 - - 1 624 1 624 - Non quoted fixed maturities (amortized cost) 23 26 23 3 - 2 2 2 - - 26 29 26 3 -
Equity securities available for sale 17 913 22 249 22 249 4 583 247 553 642 642 90 1 18 466 22 891 22 891 4 673 248 Equitiy securities at fair value through P&L 16 847 16 847 39 39 16 886 16 886 Equity securities held for trading 258 258 96 96 354 354
Non consolidated investment funds available for sale 2 640 2 920 2 920 288 8 62 65 65 3 0 2 703 2 985 2 985 291 8 Non consolidated investment funds at fair value through P&L 2 093 2 093 45 45 2 138 2 138 Non consolidated investment funds held for trading 232 232 - - 232 232
Macro hedge and other derivatives (242) (242) 536 536 294 294 Total financial investments of insurance activities 251 519 251 516 10 820 10 820 262 339 262 336 (1) Gross of impairment - including amortization, premium and accumulated amortization (2) Net of impairment
7.4.1. Breakdown of financial assets subject to impairment 7.4.2. Impairment on invested assets
Fixed maturities held to maturity - - - - - - - - - Fixed maturities available for sale 172 690 (158) 172 532 16 284 188 816 159 440 (362) 159 077 12 149 171 227 Non quoted fixed maturities (amortized cost) 25 (0) 24 - 24 26 (0) 26 - 26
(1) asset value incl. amort./premium and accrued interests, but before impairment and reevaluation to fair value of assets AFS (2) asset value incl. Impairment, amort./premium, accrued interests, but before reevaluation to fair value of assets AFS (3) incl. policy loans
(1) Including banking assets (2) Change in scope of consolidation and variation of exchange rate
Note 8 : Shareholders’ equity and minority interests 8.1. Change in shareholders’ equity (group share)
Minority interests in Alliance Capital totalled €1,275 million at June 30, 2005.
8.3. Change in net unrealized gains and losses included in shareholders' equity
Excluding the impact of derivative instruments, net gains and losses on invested assets included in shareholders' equity were as follows: Gross Unrealized gains and losses 22 299 16 614 5 685 Less unrealized gains and losses attributable to : Shadow accounting on policyholder's participation (1) (10 586) (7 528) (3 058) Shadow accounting on DAC (2) (502) (467) (35) Shadow accounting on VBI (645) (530) (115) Unallocated unrealized gains and losses (before tax) 10 565 8 088 2 477
Unrealized gains and losses (net of tax) - 100% 7 652 5 832 1 820 Minority interests share in unrealized gains and losses (3) (239) (205) (34)
Fair value of financing debt excluding accrued interest (but including related accounting hedges) as of June 30, 2005, December 31, 2004 respectively totalled €12,178 million and €12,177 million.
Senior notes MONY, 8.35%, due 2010 282 253 MONY Group Inc. notes, due 2005 232 210 Derivatives on financing debt instruments issued 3 4
Closed-Block Mony, 6.44%, due 2017 248 220 Derivatives on financing debt instruments issued 25 21
Other financial debt instruments issued ( less than €100 million ) 18 32 Derivatives on other debt instruments issued (1) 24 (1)
9.2. Financing debt by accounting method 9.3. Fair value measurement methodology
Information on the fair value figures presented in this note should be treated with caution, (i) as these estimates are based on snapshots parameters- taken at accounts closing dates - such as interest rates and spreads, which fluctuate over time, resulting in instantaneous values, and (i) as there are many possible approaches to get these estimates.
Subordinated debt held as trading - - 0 0 Subordinated debt designated as at fair value through P&L - - - -
< 1 yr 1 to 2 yr 2 to 3 yr 3 to 4 yr 4 to 5 yr > 5 yr june 30, 2005 December 31, 2004 june 30, 2005 December
Investment property at amortized cost 7 683 0 0 7 683 61 0 0 61 7 744 0 0 7 744 Investment property at fair value through profit and loss 4 550 0 0 4 550 0 0 0 0 4 550 0 0 4 550 Macro hedge and speculative derivatives 0 0 0 0 0 0 0 0 0 0 0 0
Equity securities available for sale 22 221 7 21 22 249 642 0 0 642 22 863 7 21 22 891 Equity securities at fair value through profit and loss 16 847 0 (1) 16 847 10 0 29 39 16 857 0 28 16 886 Equity securities held for trading 258 0 0 258 96 0 0 96 354 0 0 354
Non controlled investment funds available for sale 2 921 0 (1) 2 920 65 0 0 65 2 986 0 (1) 2 985 Non controlled investment funds at fair value through profit and loss 2 093 0 0 2 093 45 0 0 45 2 138 0 0 2 138 Non controlled investment funds held for trading 199 0 33 232 0 0 0 0 199 0 33 232
Macro hedge and speculative derivatives 0 0 0 0 0 0 76 76 0 0 76 76
(1) Net book value, i.e net of impairment, accrued premiums and related amortization, including accrued interests, but excluding derivatives impact. (2) excluding macrohedge and other derivatives (3) Macrohedge and other derivatives (4) Net book value, but including effect of hedging instruments (IAS 39), economic hedging instruments not acting as hedging in the meaning of IAS 39, macrohedge and other derivatives. (5) Notably includes policy loans, lease receivables and other loans. (6) Other investments held through consolidated instrument funds at fair value through Profit and Loss
Fixed maturities held to maturity 0 0 0 0 0 0 0 0 0 0 0 0 Fixed maturities available for sale 182 669 (129) 350 182 891 5 925 0 0 5 925 188 595 (129) 350 188 816 Fixed maturities at fair value through profit and loss 42 614 0 9 42 623 1 251 0 (114) 1 137 43 865 0 (105) 43 760 Fixed maturities held for trading 4 0 0 4 1 535 0 16 1 551 1 539 0 16 1 555 Non quoted fixed maturities (amortized cost) 22 0 0 22 2 0 0 2 24 0 0 24
Macro hedge and speculative derivatives 0 0 1 1 0 0 (79) (79) 0 0 (77) (77)
(2) Other debts are presented excluding effect of dervivatives on the face of the balance sheet.
Total liabilities arising from insurance contracts 325 361 81 (85) 325 357 301 421 22 (40) 301 403 Liabilites arising from investment contracts with discretionary participating feature 32 431 1 233 32 665 31 662 (10) (4) 31 648
Liabilites arising from investment contracts with no discretionary participating feature 968 0 0 968 869 0 0 869
Total liabilites arising from investment contracts 77 406 1 233 77 640 71 659 (10) (4) 71 644 Macro hedge derivatives instruments on insurance and nvestments contracts (liabilities) 0 0
Derivatives instruments on insurance and investment contracts subject to hedge accounting 82 12 - - 82 12
Macro hedge derivatives on insurance and investment contracts - - - - - Total - derivatives instruments relating to insurance and investment contracts 6 (35) 224 3 229 (32)
Derivatives instruments relating to financing debt, and other financial liabilities subject to hedge accounting (907) (919) (2) 10 (909) (909)
Other derivative instruments relating to financing debt, and other financial liabilities (2) (475) (569) 38 10 (437) (560)
Total - derivatives instruments relating to financing debt, operating debt and other financial liabilities (1 382) (1 488) 36 20 (1 345) (1 469)
(1) Hedge accounting not acting as hedge in the meaning of IAS 39 (2) Notably includes speculative derivative instruments on financing debt and other financial liabilities.
Note 11 : Revenues by segment and net revenue from banking activities 11.1. Total revenues
LIFE & SAVINGS 21 907 of which direct premiums 20 151 of which reinsurance assumed 976 of which fees and changes on investment contracts with no participation feature 237 of which revenues from other activities 543
Other countries 2 177 PROPERTY & CASUALTY 10 314 of which direct premiums 10 133 of which reinsurance assumed 161 of which revenues from other activities 21
AXA RE 1 056 AXA Corporate Solution Assurance 1 059 AXA Cessions 29 AXA Assistance 272 Others 85 ASSET MANAGEMENT 1 550 Alliance Capital 1 117 AXA Investment Managers 433 OTHER FINANCIAL SERVICES 225 French banks 50 German banks 12 AXA Bank Belgium 161 Other 2
The detailed calculation of net income per ordinary share (basic and diluted) is provided below: Weighted average number of ordinary shares (net of treasury shares) - opening 1 884 1 748
Increase in capital (excluding stock option exercised) (1) Stock option exercised (1) 1 0
Cancellations (1) Weighted average number of ordinary shares B 1 885 1 750 Net income per ordinary share C = A / B 1,21 0,99 Potentially dilutive instruments - Performed shares 1
Note 14 : Contingent assets and liabilities and unrecognized contractual commitments
* Pledged assets and Collaterized commitments 11 206 10 191 4 499 5 9 467 4 979 5 055 * Commitments on sales currently processed 15 - - - - - - -