You should read it in conjunction with the consolidated fi nancial statements and related notes for the years ended December 31, 2013 and 2012 included in Part 4 – “Consolidated Financial
(d) Shareholders’ equity per share is calculated based on the actual number of outstanding shares at each period-end presented. The calculations deduct shares held by AXA and its subsidiaries (i.e. treasury shares) in the calculation of outstanding shares. Undated debt is excluded from Shareholders' equity for this calculation.
AXA’s Property & Casualty Segment offers a broad range of products including motor, household property and general liability insurance for both Personal and Commercial customers, targeting mainly small to medium sized companies. In certain countries, Health products are classifi ed as Property & Casualty products (1).
(1) Some countries classify Health activity in the Property & Casualty segment, while other countries classify it in the Life & Savings segment. AXA
■ AXA Corporate Solutions Assurance is the AXA Group subsidiary dedicated to large corporations in terms of
The development of Asset management activities is a key part of AXA’s fi nancial services strategy, which seeks to capitalize on existing strengths and expand its client base. This strategy is based on the belief that its asset management expertise will enable AXA to benefi t in the future from the expected growth in savings-related products in the markets where it operates. For the year ended December 31, 2013, the Asset management segment accounted for €3.5 billion (2012: €3.3 billion), or 4%
France 2 14.9 2 14.5 FFSA as of January 30, 2014 for 2013 data; FFSA as of January 24, 2013 for 2012 data.
The Dow Jones Industrial Average Index in New York increased by 27% in 2013 and the S&P 500 index by 30%. The FTSE 100
Index increased by 1%. The S&P 500 implied volatility Index decreased from 18.0% to 13.7% between December 31, 2012 and December 31, 2013.
In 2013, employees invested a total of Euro 293 million that led to a total of approximately 19 million newly issued shares.
(2) In 2005, AXA sold MONY’s brokerage subsidiary Advest to Merrill Lynch for USD 0.4 billion.
On January 17, 2013, AXA announced the successful placement of USD 850 million undated subordinated notes
Poland and Czech Republic. The Company is currently focusing on other business lines showing a signifi cant increase particularly in Protection business (+81%), partly offset by lower production of Unit-Linked in a still diffi cult economic environment.
(€+67 million) resulting from higher average AUM (+5%) as well as higher Retail distribution fees (€+49 million).
AUM decreased by 1% or €-3 billion from year-end 2012 to €+346 billion driven by (i) €-16 billion unfavorable foreign exchange rate impact as a result of the appreciation of Euro vs.
AUM decreased by 1% or €-7 billion from year-end 2012 to €547 billion. Excluding the impact from the sale of AXA Private
mainly due to AXA MPS driven by a lower average yield as well as lower average assets as a consequence of a high level of surrenders, (iv) Germany (€-41 million) mainly due to a higher share allocated to policyholders, (v) France
(€-66 million) and on equities (€-41 million), partly offset by higher realized gains on real estate (€+72 million) and on other asset classes (€+26 million); ■ €-21 million higher impairments to €-301 million mainly driven by real estate (€-57 million), partly offset by more favorable equity market conditions (€+30 million); ■ €+169 million less unfavorable intrinsic value to €-66 million related to equity hedging derivatives.
Retirement (-22%) business; ■ G/A Protection and Health revenues (46% of gross revenues) increased by €357 million (+6%) mainly driven by a €353 million increase in Group Protection, from both tariff and volume increases, and a €35 million increase in Individual
Income tax expenses decreased by €+52 million (-18%) to €-232 million mainly due to lower pre-tax underlying earnings combined with a higher level of non taxable revenues and a more favorable corporate tax rate mix.
As a consequence, the underlying cost income ratio improved signifi cantly, reducing by 12.8 points to 108.1%. On a constant exchange rate and comparable scope basis, the underlying cost income ratio reduced by 13.7 points.
APE decreased by €94 million (-16%) to €504 million. On a comparable basis, APE decreased by €102 million (-17%): ■ Protection sales (47% of APE) decreased by €32 million
Amortization of VBI decreased by €6 million (-7%) to €-82 million. On a comparable basis, VBI amortization decreased by €8 million (-9%) mainly driven by various assumption changes.
APE increased by €57 million (+15%) to €430 million. On a comparable basis, APE increased by €65 million (+17%): ■ Group Life sales increased by €66 million (+25%) driven by a strong growth in full protection scheme contracts
On a constant exchange rate basis, fees & revenues increased by €10 million (+4%) mainly from higher Group Life revenues.
mainly due to the curtailment of the Crest product line (€83 million), partly offset by the launch of the Oxylife hybrid product (€+28 million).
Amortization of VBI decreased by €8 million to €-4 million. On a comparable scope basis, VBI decreased by €8 million as a result of a lower impact from unfavorable fi nancial assumptions update.
MPS (€+75 million) from higher unearned revenues reserve amortization (partly offset in deferred acquisition costs) mainly refl ecting higher surrenders combined with strong sales of
Investment margin decreased by €3 million (-29%) to €6 million. On a constant exchange rate basis, investment margin decreased by €2 million (-27%) as higher investment income from investing in longer-term fi xed income securities, more than offset increased interest credited to the policyholders.
On a constant exchange rate basis, net income increased by €68 million (+44%) due to the increase in adjusted earnings, an improvement in the change in the fair value of fi nancial assets and derivatives (€+37 million), mainly due to improved performance of interest rate swaps as well as infl ation swaps, as well as a favorable foreign exchange rate impact (€+7 million).
Turkey following tariff increases in Motor. Deterioration in mature markets was mainly due to Spain from tariff decrease and negative product mix in Motor as well as increase of large losses in Property, partly offset by Italy benefi tting from lower average claims cost in personal Motor and Property; ■ the all accident year loss ratio decreased by 0.9 point to 73.8% with less unfavorable prior year reserve developments
Net income from investments in affi liates and associates 7 -
Net realized capital gains or losses attributable to shareholders 25 (7) (7)
The underlying cost income ratio improved by 4.8 points to 74.8%.
Net income decreased by €1 million (-4%) to €31 million (or €15 million excluding charges paid by the foreign branches to the Belgian Head Offi ce). Positive evolution of adjusted earnings (€+57 million) and the change in fair value of interest rate derivatives (€+12 million), was partly offset by a negative change in fair value of own debt due to a decreasing liquidity spread (€-28 million), lower foreign exchange result (€22 million), higher restructuring costs (€-11 million) and the non-repeat of the deconsolidation of Switzerland (€8 million refl ecting the transfer of the client portfolio to Bank zweiplus in 2012).
UniCredit Bank (UCB) in Czech Republic and Slovakia. Based on this partnership, AXA`s 120,000 banking clients in Czech
The notion of Mature Market includes the following countries: the United States, the United Kingdom, Benelux, Germany,
Dated and undated subordinated notes issued by the Company qualify for favorable capital treatment from the ACPR, which oversees the Company’s consolidated solvency position, and rating agencies.
In particular, the Company’s TSS include loss absorption mechanisms which provide that under certain circumstances relating to the consolidated solvency margin of the Group, the principal amount of each of the relevant TSS will be written down. In such a case, interest will become payable on the reduced principal amount. The principal can be reinstated in the future, following the Company’s return to fi nancial health as defi ned by the term of the TSS.
Transactions involving Company securities completed in 2013 by the members of the Board of Directors 138
Medef Code are fully in line with AXA’s corporate governance approach. The Company also carefully follows the evolutions of corporate governance practices, in France and abroad, as well as the recommendations and standards of shareholders, regulators, proxy advisers, rating agencies and other stakeholders.
The Lead Independent Director also reported his activities to the shareholders during their meeting of April 30, 2013.
Governance Committee, the re-appointment as director of Messrs. Henri de Castries, Norbert Dentressangle and
(b) As from April 30, 2013, date of the merger of the Ethics & Governance Committee with the Compensation & Human Resources Committee.
Capgemini Group in May 1993, where he was fi rst in charge of coordinating central functions. In May 1996, he was appointed member of the Management Board of Cap Gemini and Chief
Retail Banking in 2009 where she shared the UK RBB best practice throughout Europe and Africa. In September 2010,
Executive Offi cer do not currently exercise any professional activity or hold any directorships outside the AXA Group that substantially interfere with or impede in any material way their availability to focus on the Group and its business.
The Committee focused, in particular, on the following issues: ■ fi nancial risk management; ■ liquidity and fi nancing; ■ capital and solvency; ■ risk appetite and asset allocation; ■ acquisitions, restructurings and disposals; ■ review of the fi nancial authorizations
In addition, the employees included in insurance and fi nancial services activities in France are included in the “cadre de convention”of four not consolidated “mutuelles”.
(h) In 2013, increase by 258 in AXA Assistance mainly driven by the acquisition of WhiteConcierge in the UK and AXA IPS in Columbia.
Mr. de Castries’ overall variable payout refl ects performance against two distinct components that are not fungible.
The individual performance of the Deputy Chief Executive Offi cer is assessed on the basis of various indicators and qualitative objectives set by the Board of Directors through a written target letter established at the beginning of each calendar year before the performance measurement period. It includes detailed objectives with regards to the Group’s progress in achieving its “Ambition AXA” strategic plan (which covers the 2011-2015 period) as well as other performance indicators and objectives designed to assess the level of achievement of global strategic initiatives and/or relating to certain geographic areas, and the evolution of certain investments contributing to the transformation of the Group’s operations (for example: the digitalization of the Group’s activities and the progress of its IT transformation, the acquisition and the launch of new operations in high growth markets, the steering of in-depth strategic reviews of certain entities, the active and appropriate capital and debt management, the progress of the effi ciency plan and the optimization of the Group organization, the defi nition and implementation of a corporate responsibility strategy, the development of diversity and inclusion, the preparation to Solvency II , etc.). The Board’s assessment of
The variable compensation paid to the Management Committee members for 2011, 2012 and 2013 was: VARIABL E COMPENSATIONS PAID TO MANAGEMENT COMMITTEE MEMBERS
Since 1989, AXA has granted stock options to its executive offi cers and its employees in France and abroad. The purpose of these grants is to associate them with AXA’s share price performance and encourage their performance over the long term.
In 2013, 3,480,637 subscription or purchase options with a strike price of €13.81 were granted to 162 employees, representing 0.14% of the outstanding share capital as at
(1) SXIP index ( StoxxInsurance Index): a capitalization weighted index, which includes European companies that are involved in the insurance sector.
Grant date (Board of Directors or Management Board) 21/09/2005 31/03/2006 31/03/2006 31/03/2006 25/09/2006 25/09/2006 13/11/2006 10/05/2007 10/05/2007 10/05/2007
Number of options exercised at 31/12/13 - - - - - 283,078 314 700 - - -
Henri de Castries Chairman & Chief Executive Offi cer 3,063,045 -
For benefi ciaries in operating entities or business units, the performance of the operational entity and/or business unit weights 2/3 of the total performance while the AXA Group performance weights 1/3. For benefi ciaries in Group support functions (including AXA executive offi cers), the performance is measured at the AXA Group level only.
This value does not represent a current market value, a current valuation of these performance shares or the actual proceeds if and when the Performance Shares are acquired.
Automatic reinvestment into the Company Savings Plan of dividends attached to shares held in the
Company’s control or strategy that has not been initiated by the benefi ciary. The payment of the severance benefi t would also be subject to the three following performance conditions: (1) achievement, for at least 2 of the 3 preceding fi scal years, of the objectives set for the benefi ciary’s variable compensation and corresponding to the payment of at least 65% of his variable compensation target; (2) evolution of the
On December 31, 2013, to the best of the Company’s knowledge based on the information available to it, the
(a) AXA’s 2017 convertible bonds can still be converted, but pursuant to an arrangement put in place in January 2007, any dilutive impact created by the issuance of new shares resulting from the conversion of the bonds is neutralized by the automatic exercise of call options on the AXA shares created.
■ This agreement, entered into on August 5, 2010, came into force on the execution date and replaces the one in force since
■ The agreement was made public by the AMF (Autorité des marchés financiers) on August 9, 2010.
The amount of the severance benefi t to be paid to the benefi ciary would be adjusted in accordance with the level of achievement against these performance conditions as follows: (1) 100% of the severance benefi t shall be paid if at least 2 of the 3 performance conditions are met; (2) 40% of the severance benefi t shall be paid if only 1 performance condition is met; and (3) no severance benefi t shall be paid if none of the performance conditions are met. Notwithstanding the foregoing, if only 2 of the 3 performance conditions are met, the amount of severance benefi t will be reduced by 50% if performance condition (1) is not met or if AXA’s consolidated net income for the preceding fi scal year was negative.
framework will cover, among other matters, valuation of assets and liabilities, the treatment of insurance groups, the definition of capital and the overall level of required capital. A key aspect of Solvency II is that assessment of the Group’s risks and capital requirements would be aligned more closely with economic
Group across the various jurisdictions where it does business, the Group has aligned its global executive compensation practices with these standards and principles and conducts regular reviews of its compensation practices and policies in light of these standards as well as applicable legal and regulatory requirements. The uneven application of these principles and standards to the different actors in the financial sector (e.g. banks, insurers, asset managers, private equity funds, hedge funds, etc.) and across the various jurisdictions where the Group does business raises competitive issues for the Group, including our ability to attract and retain top-rate talents.
June 2013, the NYDFS issued a highly critical report setting forth its fi ndings to date relating to its inquiry into the life insurance industry’s use of captive insurance companies. In its report, the NYDFS recommended that (i) the NAIC develop enhanced disclosure requirements for reserve fi nancing transactions involving captive insurers, (ii) the Federal Insurance Offi ce (the
NYDFS inquiry and (iii) state insurance commissioners consider an immediate national moratorium on new reserve fi nancing
The profi tability of AXA’s Variable Annuity products with guarantees depends, among other factors, on AXA’s ability to effectively hedge the guarantees. The Company has implemented and continues to pursue a number of initiatives, including re-design and re-pricing of certain product features, designed to improve the profi tability of these products and limit future hedging losses on the Accumulator guarantees.
Supervisors (“IAIS”) published an initial assessment methodology for designating global systemically important insurers (“G SIIs”), as part of the global initiative launched by the G20 with the assistance of the Financial Stability Board
Our competitors include mutual fund companies, asset management fi rms, private equity fi rms, hedge funds, commercial and investment banks and other insurance companies, many of which are regulated differently than we are and offer alternative products or more competitive pricing than we do.
Offi cers ensure a systematic and independent second opinion, on AXA material decision processes, like L&S and
4. Robust economic capital model: AXA’s economic capital model (STEC – Short Term Economic Capital) offers a concrete and powerful tool to control and measure exposure to most risks, in line with the Solvency II
Risk Appetite is endorsed by the Board of Directors upon review by its Finance Committee with the Audit Committee considering the effectiveness of the Group’s internal control and risk management frameworks supporting it.
Description of market risks for Life & Savings and property & casualty
In Switzerland, foreign exchange exposure amounted to €5,015 million (circa 36% of total assets) at the end of 2013, which were mainly hedged with foreign exchange derivatives.
The policy on the management of holding companies’ interest rate risk aims at monitoring and limiting the potential mediumterm variation in interest expenses and consequently at partially protecting future levels of interest expenses against movements in interest rates. Regarding foreign exchange risk, the implemented policy’s objective is to limit variations in net foreign currency-denominated assets resulting from movements in exchange rates. The purpose of the policy is therefore to protect partially or in full the value of AXA’s net foreign-currency investments in its subsidiaries and thus reduce the variability of Group consolidated shareholders’ equity against currency fl uctuations, but also of other key indicators such as liquidity, gearing and solvency ratios at Group level.
Bank Europe’s internal capital adequacy assessment and strategic planning processes take into account capital required to mitigate all material risks, capital required for expected business growth, intra-risk diversifi cation benefi ts, liquidity requirements and stress testing results. The bank aims to meet all regulatory capital obligations and to remain suffi ciently capitalized in the light of AXA internal capital model.
In addition, in the Property & Casualty business, the above mentioned tools also enable analyses on a worldwide basis of market cycle, price elasticity, reinsurers’ counterparty risk, claims frequency deviation, reserves adverse development and natural catastrophes. The results of this exercise are mainly used to optimize the Group’s protection (through reinsurance or securitization) and business-mix.
Variable Annuities. Suitable risk management policies have been put in place with respect to these products: • derivatives are used to help mitigate reserve changes linked to these guarantees due to movements in equity, fi xed income and foreign exchange markets. Benefi ts include
• biometric risks (e.g. longevity/ mortality) and policyholder behaviours (notably lapses and annuity election rates), are regularly monitored. The hedging programmes embed dynamic policyholder behaviours to a range of possible market situations; ■ 13% at the end of 2013 (15% at the end of 2012) cover savings products without guaranteed cash values upon surrender; ■ 21% at the end of 2013 (21% at the end of 2012) are related to savings products offering one-year guaranteed rates that are updated every year. The risks arising from a sustained fall in interest rates in the fi nancial markets are limited for these types of products. Hedging programs have been implemented to cover long-term fi xed maturities from the risk of an increase in interest rates; ■ 32% at the end of 2013 (34% at the end of 2012) cover other products like Protection and Health. These reserves cover surrender guarantees and, in some cases, a guaranteed long-term rate. Related risks are managed in the following ways: • products that are not surrender-sensitive are usually backed by fi xed-income investments with maturities and interest rates generally suffi cient to cover guaranteed benefi ts, so as to reduce as much as possible the reinvestment risk,
Fund (see affun dix VII ) is a key contributor to AXA’s commitment to better understand climate change.
Collateral debts relating to investments under a lending agreement or equivalent 20,909 24,397 27,509
Amortization of the value of purchased business in force (409) (188)
(b) As described in Note 1.2.1, comparative information related to previous period was retrospectively restated for the amendments to IAS 19.
(a) AXA Life Japan aligned its closing date with the Group calendar year starting with 2013 annual accounts. Therefore, its contribution to the AXA consolidated result for the 2013 annual accounts exceptionally covered a period of fi fteen months.
(d) As described in the Note 1.2.1, comparative information related to previous periods was retrospectively restated for the amendments to IAS 19.
Investment expense (excluding interests on fi nancing and undated subordinated debts, margin calls and others) (2,864) (2,804)
Sales of investment properties held directly or not (h) 1,467 967
As the Group decided to early adopt Revised IFRS 3 – Business
Black & Scholes models, etc.) based on quoted market prices for similar instruments or underlyings (index, credit spread, etc.) whenever such directly observable data are available and valuations are adjusted for liquidity and credit risk.
or asset (DPA) is recorded. The DPL or DPA corresponds to the discretionary participation available to the policyholders and is generally determined by applying on the basis of estimated participation of policyholders in unrealized gains and losses and any other valuation difference with the local contractual basis. Jurisdictions where participating business is signifi cant are Switzerland (for group insurance policies), Germany and
Net consolidated income after tax 2,895 1,948 180 393 (37) (1,193) - 4,187
The major classes of assets and liabilities of the MONY operations disposed of (amounts are presented net of intercompany balances with other AXA entities) included the following as of June 30, 2013: (In Euro million) June 30, 2013
Change in impairment and amortization of investments in real estate properties at amortized cost (all activities): (In Euro million)
Derivatives related to non consolidated investment funds 6 - 6 25 - 25
Shadow accounting on Value of purchased Business In force (215) (651)
The €36 million increase in minority interests to €2,391 million was driven by comprehensive income and transactions with minority interests’ holders: ■ the comprehensive income for the period notably included the following: • N et income attributable to minority interests for €+304 million,
IFRS 4, are still insuffi ciently developed. After a Draft Statement of principles issued in 1997, a Phase II Discussion Paper was published in May 2007 and an Exposure Draft in July 2010.
For example, the amount of €31,168 million appearing in the fi rst line of the table in the 2005 column represents all loss reserves developed in all years of occurrence prior to and including 2005, recognized on the Group’s balance sheet as of
TOTAL GROSS CLAIM RESERVES AND OTHER RESERVES FOR PROPERTY & CASUALTY AND INTERNATIONAL INSURANCE 49,455 49,197
Sub-total – Non Life and International Insurance 59,775 - 59,818 -
Banking liabilities issued at fair value – Retail customers 30 642 1,019 1,690 125 578 359 1,062
Refi nancing with central banks - - - - 252 - - 252
TOTAL LIABILITIES ARISING FROM BANKING ACTIVITIES 29,456 3,354 2,564 35,374 28,511 3,439 1,544 33,494
The fair value of fi nancing debt as of December 31, 2013, excluding accrued interests, was €11,495 million, including related hedging derivative instruments. The fair value decreased by €-391 million compared to December 31, 2012 mainly due to the increase of interest rates in the period.
Debts relating to investments under total return swap agreement 138 176
Minority interests in funds under this caption totaled €7,549 million as of December 31, 2013, an increase of €3,774 million compared with December 31, 2012, mainly due to the change from equity method to full consolidation in 2013 of the AXA IM Euro Liquidity fund in Belgium.
The reconciliation between the theoretical tax charge (pre-tax profi t multiplied by the applicable tax rate in France for the period concerned) and the effective tax charge was as follows: (In Euro million) December 31, 2013
However, in 2013, the use of derivatives within the Group decreased overall by €-55.9 billion in terms of notional amount for the main reasons listed below (see also details in
Macro-hedge and other derivatives 10 988 998 - (1,362) (1,362) 10 (373) (364)
Liabilities arising from insurance contracts 348,407 (533) 347,875 362,378 (929) 361,449
Net investment income is presented net of impairment charges on directly-owned investment properties, and net of amortization of debt instruments premiums/discounts.
The cost of the contributions paid was recognized as an expense in the income statement, and amounted to €138 million as of 26.2.2. Defi ned benefi t plans
Benefi ts paid by plan assets and by separate assets (584) (579) (1) (1) (586) (580)
Changes in the asset ceiling, excluding the interest cost (1) 2 - - (1) 2
Net position (excluding separate assets) (7,261) (8,783) (542) (700) (7,802) (9,484)
(c) This amount mainly includes impact of the sale of AXA Investment Managers Private Equity in 2013.
Interest income on plan assets (320) (345) - - (320) (345)
Statement of fi nancial position liability at the beginning of the year (8,783) (8,030) (700) (629) (9,484) (8,658)
In France, voluntary regular employer annual contributions are made to separate assets, with an objective of the coverage ratio remaining within a targeted range of the total Defi ned Benefi t
From year N+11 until the last benefi t payments is paid 26,349 613
Units does not include a gain of €81.0 million in 2013 before tax (gain of €32.2 million in 2012) on the hedging program through equity swaps in place at Group level. Net of this hedging gain, the cost related to Performance Units amounted to €49.4 million in 2013 (€34.3 million in 2012).
On October 25, 2013, the AXA Group made an employee share offering at €14.38 per share for the traditional plan (discount of 20% to the reference price of €17.97 representing the average over the twenty trading days ending on October 24, 2013) and at €15.64 per share for the leverage plan (discount of 12.95%
AXA shares based on the achievement of performance criteria defi ned by AXA. The performance period and measurement is 2-years (similar to Performance Units granted in 2011 and 2012). The vesting period (service condition) is 3 years (similar to Performance Units granted in 2011 and 2012). However, oppositely to Performance Units granted in 2012 and 2011, under the 2013 International Performance Shares plan, the settlement will be made in shares rather than in cash.
Guarantee commitments received totaled €17,347 million at the end of 2013, and mainly consisted of (i) guarantees from customers related to mortgage loans (€13,254 million) received by Switzerland Life & Savings (€7,142 million), AXA Bank
Banque (€385 million), (ii) €2,101 million other guarantees received from customers at AXA Banque and (iii) €1,992 million guaranties received from credit institutions mainly at AXA
(€366 million); ■ €2,963 million commitments to invested assets other than real estate funds/Private equity funds mainly from Belgium
Statutory Auditors in charge of auditing the Group’s fi nancial statements between the fees for the legal mission of Statutory
External audit fees are also paid by certain Affi liates and mutual funds which are not required to be included in the table above.
In accordance with the requirements of article L. 823-9 of the French Commercial Code (Code de commerce) relating to the justifi cation of our assessments, we bring to your attention the following matters: ■ your company describes in Notes 1.8.2, 4.3 and 9.9 to the consolidated fi nancial statements the valuation methods it applies to fi nancial assets.
Group Standards Handbook). This process ensures that all the companies of the Group have effective risk management processes and appropriate governance structures, and
Medef recommendations, including the recommendations on the compensation of executive offi cers dated October 2008, as
I Report of the Statutory Auditors prepared in accordance with Article L.225-235 of the French Commercial Code on the R eport prepared by the Chairman of the Board of Directors of AXA (For the year ended December 31, 2013)
AXA’s management’s assertion that internal control is effective included in the Management’s Annual Evaluation of Internal Control
The Statutory Auditors prepared a report on the Company’s fi nancial statements for the year ended December 31, 2011, which are incorporated by reference in this document. This report, set out in pages 457 and 458 of the Registration Document fi led with the
AXA’s authorizations to issue shares or other types of securities that were valid as of December 31, 2013 are summarized in the tables below: Issues with preferential subscription rights for shareholders
(d) At the date on which stock options are granted by the Board of Directors.
Net income for the fi scal year ended December 31, 2013 was €1,727 million, compared to a profi t of €3,261 million in the year ended December 31, 2012, which included a foreignexchange gain of €903 million compared to a €332 million loss in 2013.
Intangible assets totaled €354 million. They mainly included the AXA brand contributed by FINAXA as part of the 2005 merger and valued at €307 million at the time based on brand royalties billed to Group subsidiaries and to the Mutuelles AXA, and €47 million relating to the capitalization of software costs.
Cash instruments totaled €76 million versus €48 million in 2012, refl ecting a €28 million increase mainly due to the purchase of €47 million in positions for Japanese yen hedging strategies.
Unrealized foreign exchange losses amounted to €1,372 million, of which €1,318 million related to the deferred recognition of exchange-rate losses in line with the principles of hedge accounting, which are compensated by unrealized gains on investments in subsidiaries. This item also refl ects unrealized losses on assets and liabilities denominated in foreign currencies attributable to the effects of their revaluation at the closing exchange rate.
I Notes to the fi nancial statements as at December 31, 2013
Since January 1, 2011, AXA has applied the hedge accounting rules to hedge foreign-exchange risk applicable to investments in subsidiaries and affi liates.
Moreover, the footprint of AXA’s salaried workforce in 2013 was 65% in Europe (vs. 66% in 2012), 20% in Asia-Pacifi c (vs. 19%
is made up of staff representatives from AXA’s largest European entities, who meet in order to receive and exchange information on the social, strategic and economic issues that concern the
Excellence collaborated on this project. The framework offers a range of good practices, from both internal and external sources and a toolkit to support entities in implementing fl exible work arrangements.
Headcount (number of persons) as of December 31 2013 Evolution 2012
Net headcount evolution of salaried sales force (entries versus departures) 202 emp. 134 emp.
■ Proportion of absences linked to maternity/paternity leave 36.2 % 31.4 %
• creating a reinsurance pool to develop infrastructures producing renewable energy.
Organisation principles. In addition, the Group applies social and environmental criteria to assess supplier performance.
Article L.822-11 of the French Commercial Code. We have also implemented a quality control system comprising documented policies and procedures for ensuring compliance with the codes of ethics, professional auditing standards and applicable legal and regulatory texts.
We also assessed the relevance of explanations given for any information that was not disclosed, either in whole or in part.
Sections 1. Business and trends / Earnings / Financial position and key performance indicators 20 to 86 and 355 to 379 2. Use of fi nancial instruments by the Company when relevant for assessing its assets and liabilities, fi nancial position, and profi ts and losses 3. Description of major risk factors and uncertainties 152 to 184 4. Acquisition of signifi cant equity interests in companies headquartered in France 357 5. Events subsequent to fi scal year end / Outlook 27; 83; 92; 329 6. Dividend distributions over the last three years 5 7. Information on market and liquidity risks (interest rate, exchange rate and stock price fl uctuation risk) 87 to 92; 155 to 167 8. Purchase and sale of the Company’s own shares 142 10. Transactions involving Company stock completed by corporate offi cers 138 11. Directorships and positions held by corporate offi cers of the Company 101 to 105 12. Relevant provisions in the event of a public takeover bid on the Company 336 15. Adjustment of the rights of holders of securities with a claim on the capital of the Company n/a 16. Social and environmental information 381 to 398 17. Research and development activities n/a 18. Terms of payment 357
Report of the Chairman of the Board of Directors on the conditions of preparation and organization of the Board’s work and on internal control procedures 340 to 346