PART IV — RISK FACTORS, CERTAIN DISCLOSURES ABOUT MARKET RISKS AND RELATED MATTERS 165 4.1 Risk Factors 166 4.2 Quantitative and Qualitative Disclosures About Market Risk and Risk Factors 176 4.3 Certain financial information 195
This annual report includes AXA’s consolidated financial statements for the years ended December 31, 2007, 2006 and 2005. AXA’s consolidated financial statements, including the notes thereto, are included in Part V — “Consolidated Financial Statements” of this Annual Report and have been prepared in accordance with International Financial Reporting Standards (referred to in this Annual Report as “IFRS”) and interpretations from the International Financial Reporting Interpretations Committee (referred to in this Annual Report as “IFRIC”) that were definitive and effective as at December 31, 2007, as adopted by the European Commission before the balance sheet date. However, the Group does not use the “carve out” option to avoid applying all the hegde accounting principles required by IAS 39. As a consequence, the consolidated financial statements also comply with IFRS as issued by the International Accounting Standards Board (“IASB”).
— Table of principal subsidiaries with ownership and voting rights percentages 14
(a) The exchange rates presented correspond to the year-end exchange rate and average exchange rate for a financial year ending September 30.
In 1��5, AXA acquired a majority interest in National Mutual Holdings following its demutualization. National Mutual Holdings, based in Australia, subsequently changed its name to AXA Asia Pacific Holdings Ltd.
In 1��7, AXA merged with its French competitor Compagnie UAP. This transaction enabled AXA to significantly increase its size and reinforce its strategic position in a number of important markets, particularly in Europe.
— Holdings and other companies 2 — 4 — — 4 — —
(e) Underlying earnings correspond to adjusted earnings excluding net realized capital gains attributable to shareholders. (f) Adjusted earnings represent the net income (group share) before : (i) The impact of exceptional operations (primarily change in scope, including restructuring costs related to a newly acquired company during the considered accounting period). (ii) Goodwill and other related intangible impacts, and (iii) Profit and loss on financial assets accounted for under fair value option (excluding assets backing contract liabilities for which the financial risk is borne by the policyholder)
(b) As described in Note 1.10 of “Part V — Consolidated Financial Statements”, the contribution of discontinued operations is stated in a separate line of the income statement.
AXA competes with insurance companies and may compete with banks, asset management companies, investment advisers and other financial institutions for sales of savingsrelated investment products and, to a lesser extent, life insurance products.
Investment and savings products include: — Deferred annuities, which may be purchased with either a single premium or regular premiums. A deferred annuity has two distinct periods: an accumulation period and an annuity payment period. Typically, more flexibility is permitted in premium payments for longer deferred periods. The premium can be invested in the general account of the insurer, or in a choice of unit-linked funds. Also known as variable annuities in the United States, these products often include optional guarantees (for a fee) such as guaranteed minimum income — or annuity — benefit (GMIB), guaranteed minimum death benefit (GMDB) and guaranteed minimum withdrawal benefit (GMWB).
baseD on Gross reVenues In 2006 agents, salaried salesforce and direct sales
proDuCts anD serVICes AXA’s Property & Casualty insurance operations offer 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, and, in certain countries, health products. In addition, AXA offers engineering services to support prevention policies in companies.
Gross revenues Gross insurance liabilities at December 31, 2007 years ended December 31, personal line
DIstrIbutIon Channels AXA distributes its Property & Casualty insurance products through a number of channels that vary from country to country, including exclusive agents, brokers, salaried salesforces, direct sales and banks and other partnerships, including car dealers. In Europe, the same distribution channels are used by both AXA’s Life & Savings operations and Property & Casualty operations. For a description of these distribution channels, please refer to the “Distribution channels” section in the Life & Savings segment of this Part 2.2.
Also with effect from year-end 2006, IBNr reserves related to construction insurance in France (“PSNEM”) and the annuity reserves of the Property & Casualty segment have been included in the loss reserve development table for Property & Casualty and International Insurance (excluding AXA rE).
The surplus (shortfall) of the initial reserves with respect to the re-estimated gross final cost for each year represents, for a given year N, the difference between the amount shown on the second row (gross reserves for unpaid claims and claims expenses developed in 2007 adjusted for changes in exchange rates and scope of consolidation) and the amount shown in the final diagonal under “reserves re-estimated”.
Cumulative redundancy (deficiency) from the initial gross claims reserves in excess of (less than) re-estimated gross claims reserves 200 (343) (317) (313) 560 671 410 (85) 508
There have been a number of other initiatives in Europe with implications for AXA’s European insurance subsidiaries, and the European insurance sector more generally, including the following: — In September, 2007 the European Commission completed its investigation into certain practices relative to the
— In various European and other jurisdictions, including the UK, insurance and financial services regulators have adopted or are generally moving towards a “principles based” system of regulation founded on a set of general and broadly worded principles rather than detailed prescriptive rules. These principles, which provide regulators with broad discretion in their application, cover a variety of matters and are designed to ensure, among other matters, that insurers and other financial services providers treat their customers fairly, conduct their business with the requisite levels of integrity and ethics, maintain appropriate corporate governance practices and internal controls, and generally manage their businesses in a prudent manner taking into account their fiduciary duties and the interests of their customers.
unIteD states In the United States, regulation of the insurance business remains principally at the state level, with AXA’s insurance operations being subject to regulation and supervision by various states and territories. Within the U.S., the method of regulation varies but generally has its source in statutes that delegate regulatory and supervisory powers to a state insurance commissioner. While the extent of regulation varies by jurisdiction, most jurisdictions have laws and regulations governing approval of policy forms and rates, sales practices and business conduct, the standards of solvency that must be met and maintained (including risk-based capital measurements), the establishment and levels of reserves, the licensing of insurers and their agents, sales practices by agents, the nature of and limitations on permitted investments, restrictions on the size of risks which may be insured under a single policy, deposits of securities for the benefit of policyholders, methods of accounting, periodic examinations of the affairs of insurance companies, and the form and content of reports of financial condition and results of operations to be filed.
Certain of AXA’s U.S. insurance, broker-dealer, investment adviser and investment management subsidiaries, including AXA Equitable Life Insurance Company (“AXA Equitable”), and certain life insurance policies and annuity contracts offered by them are subject to regulation under the Federal securities laws administered by the SEC and under certain state securities laws. The SEC conducts regular examinations of the operations of these companies, and from time to time, makes requests for information from them. The SEC, other governmental and regulatory authorities, including state insurance and securities regulators, and the Financial Institutions regulatory Authority (“FINrA”) may institute administrative or judicial proceedings which may result in censure, fines, the issuance of cease-and-desist orders, the suspension or expulsion of a broker-dealer or member, its officers or employees or other similar sanctions. Over time, AXA Financial’s broker-dealer subsidiaries and its other subsidiaries have provided and, in certain cases continue to provide, information and documents to the SEC, FINrA, state attorneys general and other regulators on a wide range of issues, including, among other things, supervisory issues, market timing, late trading, valuation, suitability, e-mail policies and practices, replacements and exchanges of variable life insurance and annuities, collusive bidding and other inappropriate solicitation activities, “revenue sharing” and directed brokerage arrangements, investment company directed brokerage arrangements, fund portfolio brokerage commissions, mutual fund sales and marketing and “networking arrangements” as well as purchases and sales of “non-traditional insurance products” including finite reinsurance. In addition, investigations by state attorneys general and state insurance commissioners into collusive bidding, contingent commissions, finite reinsurance and revenue sharing practices as well as practices associated with replacements and exchanges of life insurance and annuities, gave rise to a number of state legislative initiatives in this area. Certain of AXA’s U.S. and other subsidiaries have been the subject of, or otherwise involved in these investigations from time to time. Ongoing or future regulatory investigations could result in fines, other sanctions and/or other costs for AXA’s subsidiaries and/or other legislative initiatives.
(1) Source: the Swiss Insurance Association statistics. (2) Source: Assuralia (Belgian Professional Union of Insurance companies). Derived from the nine months ended September 30, 2007 figures. (3) Source: Assuralia (Belgian Professional Union of Insurance companies) (data as of 2006). (4) ICEA source. (5) IAMA source as of November 2007. (6) Source: Portuguese Insurance Association.
Looking at the major global stock market indices, the MSCI global gained nearly 10%, including dividends. The MSCI emerging gained close to 40%, after adding 33% in 2006. The Dow Jones and the DJ Euro Stoxx appreciated by 8.9% and 7.3% respectively, while in Japan, the Nikkei lost 11% on the year.
On October 18, 2005, AXA acquired from the group Caixa Geral de Depósitos the insurance company Seguro directo which operates in the direct insurance market in Portugal (by telephone and Internet). The purchase price amounted to €42 million, and the related goodwill to €31 million.
Minority interests in income or loss (642) (620) (620) (492) (492)
Net realized capital gains or losses attributable to shareholders 1,130 (23) 1,107
group underlying earnings amounted to €4,963 million. Excluding the contribution of Winterthur in 2007 (€623 million) and on a constant exchange rate basis, underlying earnings grew by €572 million (+15%), attributable mainly to Life & Savings, Property & Casualty and Asset Management.
(v) Higher expenses including deferred Acquisition costs (€—742 million impact), mainly in the United Kingdom (€—241 million mainly driven by the inclusion of the Thinc Group expenses, and amortization of previously deferred expenses on short term offshore cash deals largely written in Q4 2006 and Q1 2007 which is offset by an increase in deferred loadings amortization in fees and revenues), France (€—230 million notably from the impact of charges that were reclassified from technical items to commissions in the context of the renewal of some Group Life contracts, and increased general expenses mainly due to IT Costs and building lease), the United States (€—71 million mainly driven by DAC amortization increase reflecting lower DAC unlockings in 2007 and higher revenues from separate account fees), Japan (€—57 million mainly due to higher commissions as a result of variable annuity and medical sales growth, and higher non-commission expenses), and Australia / New Zealand (€—55 million reflecting higher commissions associated with increased fees and revenues).
Asset Management underlying earnings amounted to €590 million. Excluding the contribution of Winterthur (€14 million) and on a constant exchange rate basis, asset management underlying earnings increased by €105 million (+21%) attributable to both AllianceBernstein (€+41 million) and AXA Investment Managers (€+64 million), following: (i) higher average assets under management (+21% both at AllianceBernstein and AXA Investment Managers), (ii) improved business mix, and (iii) better underlying cost income ratio by 0.5 point to 67.1%.
(a) Restated in full year 2006 means the restatement of The Netherlands’ activities as discontinued businesses. (b) Restated in full year 2005 means: (i) transfer of the forex impact from adjusted earnings to net income, (ii) following clarification of IFRIC agenda committee following IASB
Technical charges relating to insurance activities (b) (69,987) (68,236) (69,052) (63,710) (64,721)
Goodwill and other related intangible impacts (39) (10) (10) (8) (8)
Net realized capital gains or losses attributable to shareholders 567 575 597 437 432
expenses (including commissions and DAC) decreased by €78 million to €—1,647 million. On a constant exchange rate basis, expenses increased by €71 million (+4%) due to: — Expenses, net of capitalization (including commissions), increased by €31 million on a constant exchange rate basis principally due to higher commissions and a 3% increase in general expenses partially offset by increased DAC capitalization.
Income tax expenses decreased by €173 million to a benefit of €31 million on a reported basis. Excluding Winterthur and on a constant exchange rate basis, the reduction of €159 million was due primarily to a 2007 one off gain of €29 million due to a reduction in the rate of U.K. Corporation Tax applied to deferred tax balances, and the non recurring 2006 net negative impact of €107 million due to the reassessment of the likelihood of a future distribution from the attributed Inherited Estate. Winterthur contribution amounted to €14 million.
Net capital gains or losses attributable to shareholders net of income tax 65 38 120
Net capital gains and losses attributable to shareholders net of income tax (15) 4 2
gross revenues reached €4,133 million. On a comparable basis, gross revenues decreased by €40 million (—1%): — Group Life decreased by €37 million (—1%) to €3,423 million as 2006 recorded a non-recurring high level of premiums related to the transfer of vested benefits on new contracts.
Adjusted earnings reached €149 million as the underlying earnings contribution was partly offset by €—15 million net capital losses on equities and bond securities.
Adjusted earnings increased by €24 million (+20%) to €143 million. Excluding Winterthur and on a constant exchange rate basis, adjusted earnings increased by €32 million (+27%), driven by the increase in underlying earnings and higher net capital gains as a result of strong equity markets. MLC and Winterthur contributions amounted to €13 million and €5 million, respectively.
Amortization of value of purchased life business in force — — — — —
net investment result increased by €42 million to €380 million on a reported basis, or €43 million (+13%) on a constant exchange rate, as a result of higher average investment returns.
increased by €84 million (+46%), primarily reflecting the significantly lower underlying taxes due to the one-off effects in 2007 and the increase of the net investment result. Winterthur contribution amounted to €59 million.
As a result, the combined ratio deteriorated by 1.9 point to 97.3%. Excluding the contribution of Winterthur, the underlying combined ratio deteriorated by 3.4 points to 98.7%.
Underlying earnings increased by €69 million to €216 million. Excluding the contribution of Winterthur, underlying earnings increased by €16 million (+11%). Winterthur contribution amounted to €54 million.
The net technical result increased by €13 million to €220 million: — The current accident year net technical result decreased by €74 million to €105 million mainly due to higher large losses (€+88 million to €274 million) and a decrease in premium rates especially in Aviation and Property.
As a consequence, the all accident year loss ratio increased by 0.5 point to 87.8 %.
Net income from investment in affiliates and associates — — —
decision, AXA reclassified TSDI instruments (perpetual subordinated debts) into shareholders’ equity with impact on net income, and (iii) the restatement of The Netherlands’ activities as discontinued businesses.
net income increased by €59 million to €—27 million, or €55 million excluding Winterthur and on a constant exchange rate basis, as the growth in adjusted earnings was partly offset by the negative foreign exchange rate impact on a euro denominated intercompany loan.
earnings per Share (epS) represent AXA’s consolidated adjusted earnings, divided by the weighted average number of outstanding ordinary shares.
(ii) Claims charges, gross of reinsurance. (iii) Change in claims reserves, including claims handling costs reserves, gross of reinsurance, less the recurring interests credited to insurance annuity reserves.
The investment strategy of AXA’s Life & Savings subsidiaries is designed to match the investment returns and estimated maturity of their investments with expected payments on insurance contracts. Entities regularly monitor the valuation and duration of their investments and the performance of their financial assets. Financial market performance may affect the level of surrenders and withdrawals on life insurance policies, as well as projected immediate and longterm cash needs. Entities adjust their investment portfolios to reflect such considerations.
AXA is not considered as a financial conglomerate. However, in accordance with the decree of September 19, 2005, if a company is not subject to the additional supervision applicable to a financial conglomerate, its solvency margin is nevertheless reduced by the amount of its equity interests in credit institutions, investment companies or financial institutions.
Banca Monte dei Paschi di Siena S.p.A. Piazza Salimbeni, 3 53100 Siena — Italy
Business address AXA UK PLC — 5 Old Broad Street — London EC2N 1AD — UK
Schneider Electric, Chairman and Chief Executive Officer Vice-Chairman of the Board of Directors and Director: — AXA Assurances IARD Mutuelle — AXA Assurances Vie Mutuelle — AXA Courtage Assurance Mutuelle FINAXA, Director Vivendi Universal, Director AXA Holding Maroc1 (formerly AXA-ONA) (Morocco), Director gérard Mestrallet, Member of the aXa supervisory Board 59, French nationality.
Suez, Chairman and Chief Executive Officer Chairman of the Board of Directors: — Suez Energie Services — Suez Environnement — Suez-Tractebel (Belgium) — Electrabel (Belgium) Vice-Chairman of the Board of Directors: — Hisusa (Spain) — Aguas de Barcelona (Spain) Director or member of the Supervisory Board: — Saint-Gobain — Pargesa Holding S.A (Switzerland)
Monte dei Paschi di Siena Foundation, Chairman Chigiana Music Academy Foundation, Chairman Mecenate 90 Association, Chairman Siena Biotech, Chairman of the Ethical Monitoring Committee ACRI, Vice-Chairman Ravello Foundation, Director
service contracts between the aXa group and members of the supervisory Board
The scope of the Audit Committee’s responsibilities is set forth in an Audit Committee Charter which defines the Committee’s principal missions, including the following: — to review the Company’s interim and annual financial statements and certain financial disclosures by the Company; — to control the appointment, compensation and replacement of the Company’s auditors and to oversee the Company’s auditors and, where legally permissible, the auditors of the Company’s subsidiaries; — to review the external auditors’ proposed audit scopes, audit plans and coordination with the Company’s internal audit Department and to review the result of their work, their recommendations and obtain timely reports concerning the status of these matters; — to assess the independence of the Company’s external auditors by examining their relationships with the AXA Group and, in particular, by examining all fees for audit services, audit related services and any other services; — to review with the Management Board and the Head of Group Audit department the structure and missions of the Company’s internal audit function; and
Mr. Christopher Condron has a bachelor’s degree in Business Management from the University of Scranton. In 1989, he became head of the Private Client Group of The Boston Company, now Mellon Private Asset Management. In 1993, he was appointed Executive Vice-President of Mellon and, in 1994, became Vice-Chairman of Mellon. In 1999, Mr. Condron became President & Chief Operating Officer of Mellon Financial Corporation. Since May 2001, Christopher Condron has been President and CEO of AXA Financial, Inc. and Chairman of the Board, President (since May 2002) and Chief Executive Officer of AXA Equitable Life Insurance Company. Since July 2001, he has been a member of the AXA Management Board.
Director or member of the Supervisory Board: — AXA ART — AXA Santé Mutuelle Assurance — AXA Banque — AXA France Finance — Natio Assurance — AXA Assistance France Permanent Representative of: — AXA France IARD to the Board of AXA RE — AXA Courtage IARD to the Board of AXA Investment
Managers service contracts between the aXa group and members of the Management Board
The Executive Committee conducts quarterly business reviews (QBRs), during which performance of the AXA Group is reviewed. These reviews were introduced in 2000 to provide a clear and consistent framework for: — reviewing operational performance and monitoring the progress of key projects using quantifiable standards of measurement defined in collaboration with the Management Board; — assessing the status of Group transversal projects; and — exchanging ideas and information on key Group strategic orientations.
Eugène Teysen Chief Executive Officer of Insurance and Bank activities in Belgium
The amounts awarded to the Chairman of the Management Board as variable compensation demonstrate the genuine variability of this pay component: real target
For Management Board members who have a functional responsibility (C. Brunet and D. Duverne), the part of their variable remuneration linked to the AXA Group results and the AXA share performance accounts for 40%, the part linked to the performance of their functional area of responsibility for 30% and the part linked to their individual performance for 30%.
For the other members of the Executive Committee, the variable component of pay also depends on Group performance, the performance of their business unit and their individual performance.
To date, AXA has opted to grant subscription options, with the exception of options granted until 2005 to certain employees of AXA Financial, which were purchase options on ADRs.
Annual grants are generally made during the first quarter of the year. In 2007, grants were made 20 trading days after the date annual consolidated earnings were released, i.e. on May 10, 2007 and the strike price was equal to the average of the stock price during the 20 trading days before the grant date.
— The degree of achievement for each target determines the number of units/shares definitively granted to the beneficiary, which may vary between 0% and 130%.
Performance shares granted in 2007 by AXA to the 10 employees of the Company or of eligible AXA Group’s subsidiairies who received the highest number of performance shares 59,700
In the table above all dates that are indicated shall read day/month/year. (a) Performance shares granted as a replacement for Performance Units 2004 cancelled.
Number of shares sold since the beginning of the program 22,263,001
3.4 Major shareholders and related party transactions capital ownersHip As of December 31, 2007, AXA’s fully paid up issued and outstanding share capital totaled €4,719,125,496.68 divided into 2,060,753,492 shares, each with a par value of €2.29 and eligible for dividends as of January 1, 2007.
Conversion Starting February 17, 2000: 4.15 (a) shares for 1 bond
Maturity of the bonds Total redemption on January 1, 2017 at 269.16 euros per bond, i.e. 162.63% of the nominal amount
In the other 30 countries, the shares granted will be acquired after a 4-year acquisition period (i.e. on July 1, 2011), subject to a presence condition within the AXA Group, but will not be subject to any restriction period.
Official trading of listed securities on Euronext Paris, including the Company’s ordinary shares, is transacted through French stockbrokers (sociétés de bourse) and takes place continuously on each business day in Paris from 9:00 a.m. to 5:25 p.m. (Paris time), with a fixing of the closing price at 5:30 p.m.
AXA publishes its consolidated financial statements in Euro. For the year ended December 31, 2007, a significant portion of AXA’s insurance gross premiums and financial services revenues, as well as AXA’s benefits, claims and other deductions, were denominated in currencies other than the Euro, primarily U.S. dollars, pounds sterling, Japanese yen, Swiss francs and Australian dollars. AXA’s obligations are denominated either in Euro or other currencies, the value of which is subject to foreign currency exchange rate fluctuations.
In accordance with industry practices and accounting and regulatory requirements, we establish reserves for claims and claims expenses related to our Property & Casualty and International Insurance businesses. With the exception of disability annuities and workers compensation liabilities that are deemed structured settlements, the claims reserves are not discounted. Reserves do not represent an exact calculation of liability, but instead represent estimates, generally using actuarial projection techniques at a given accounting date. These reserve estimates are expectations of what the ultimate settlement and administration of claims will cost based on our assessment of facts and circumstances then known, review of historical settlement patterns, estimates of trends in claims severity, frequency, legal theories of liability and other factors. The process of estimating the insurance claims reserves is based on the most current information available at the time the reserves are originally established. However, claims reserves are subject to change due to the number of variables which affect the ultimate cost of claims, such as: — development in claims (frequency, severity and pattern of claims) between the amount estimated and actual experience; — changes arising due to the time lag between the occurrence of the insured event, notification of the claim (from the insured party, a third party or a ceding company) and the final settlement (payment) of the claim, primarily attributable to long tail casualty claims that may take several years to settle due to the size and nature of the claim, and the occurrence of large natural catastrophes late in the financial year for which limited information may be available at year-end; — judicial trends; — expenses incurred in resolving claims; — regulatory and legislative changes; — changes in economic conditions, including inflation and foreign currency fluctuations; and — changes in costs of repairs and medical costs.
— take any action based upon the advice of, or information from, legal counsels, accountants, any person presenting ordinary shares for deposit, any holder or owner of an AXA ADR or any other person believed by AXA or the depositary in good faith to be competent to give such advice or information. In addition, the depositary and AXA have the obligation to participate in any action, suit or other proceeding with respect to the AXA ADSs which may involve them in expense or liability only if they are indemnified.
Property & Casualty technical reserves break down as follows. (in Euro million)
For the purpose of optimizing the financial management and control of financial risks, the Group Central Finance Department has defined and introduced formal management standards, as well as guidelines for monitoring and assessing financial risks, which enable it to measure the positions of each affiliate in a consistent manner. These standards have been validated by the Management Board.
The exposure in With-Profits funds arises on assets with a market value of €2,770 million (€2,996 million in 2006). Its foreign currency liabilities in the fund are €136 million (€188 million in 2006). The UK Life & Savings segment holds some foreign exchange derivative instruments (including swaptions held in connection with Guaranteed Annuity Options).
In Switzerland P&C, foreign exchange exposure amounted to €2,145 million (circa 36% of assets) at the end of 2007, of which €1,666 million were hedged with foreign exchange forwards (€1,057 million) and call/put strategy (€609 million).
IFRS shareholders’ equity at December 31 33,488 12,153 45,642 35,600 11,625 47,226
— Non-financial risks are provided for through the cost of holding capital consistent with the level to obtain a AA rating at each operation.
The sensitivity of the Life & Savings EEV and of the Other Business Tangible Net Asset Value to changes in major economic assumptions has been calculated as follows for the 2007 and 2006 values: — Upward parallel shift of 100 basis points in reference interest rates simulates a sudden shock to the initial conditions. This means changes to: 1) the current market values of fixed-interest assets, with related possible changes to projected capital gains/losses and/or fee revenues, 2) future reinvestment rates for all asset classes, and 3) risk-discount rates. Inflation rates are not changed. Policyholder and management behavior is adjusted following normal behavioral modeling.
Equity market sensitivities for Life & Savings business of 5% to upward 10% or —5% to downward are more nearly symmetrical, with no complicating effects from changes of discount rates. The limited asymmetries reflect the impact of guarantees and profit-sharing rules, along with some hedging programs to limit potential losses. The impacts of equity market value changes can come through general account exposures or through changing asset balances impacting future fee revenue on separate account business.
Equity market sensitivities for Other-Than-Life business of 3% to upward 10% or —3% to downward (2006: 3% and —3%) reflect the net-of-tax impacts on equity including derivatives on the equity.
By seeking to develop new solutions and actively contributing to the overall debate about the issues involved — particularly as part of the Carbon Disclosure Project — AXA, along with other major market players, intends to promote a better understanding and better forecasting of the risks resulting from global warming.
— Guarantees and options embedded in the product must be quantified using stochastic methods defined by GRM in order to ensure that they are correctly reflected in pricing. This work also gives a better understanding of any assetliability mismatch risk and the actual economic capital requirement at the product design stage.
Finally, in addition to the analyses described above, AXA regularly monitors its exposure to its main reinsurers, as described in the section relating to credit risk management.
INSURANCE COvER The AXA group’s general policy concerning the insurance of transferable risks
— Note 28: Contingents assets and liabilities and unrecognized contractual commitments 368
(d) Includes policy loans. (e) Includes assets backing contracts where the financial risk is borne by policyholders with Guaranteed Minimum features. (f) Includes long-term assets, i.e. when maturity is above 1 year. (g) Includes short-term assets, i.e. when maturity is below 1 year.
Net change in deferred acquisition costs and equivalent (1,911) (1,371) (1,518)
Net cash related to sales and purchases of tangible and intangible assets (312) (164) 11
Net gains and losses recognized directly through shareholders’ equity (3,959) (1,000) 3,594
policies relating to the classification and measurement of insurance contracts, investment contracts and other financial assets and liabilities including derivatives.
1.9. DERIVATIVE INSTRUMENTS Derivatives are initially recognized at fair value at purchase date and are subsequently re-measured at their fair value. Unrealized gains and losses are recognized in the statement of income unless they relate to a qualifying hedge relationship as described below. The Group designates certain derivatives as either: (i) hedging of the fair value of recognized assets or liabilities or of a firm commitment (fair value hedge); or (ii) hedging of highly probable expected future transactions (cash flow hedge); or (iii) hedging of net investments in foreign operations.
The purpose and conditions of the use of derivatives within the Group is detailed in Note 19.
— liabilities arising from investment contracts with discretionary participating features where the financial risk is borne by policyholders; these relate to unit-linked contracts or multi-funds contracts containing a non-unitlinked fund with discretionary participating features,
1.13. REINSURANCE: CEDED REINSURANCE Transactions relating to reinsurance assumed and ceded are accounted in the balance sheet and income statement in a similar way to direct business transactions provided that these contracts meet the insurance contracts classification requirements and in agreement with contractual clauses.
— the change in impairment of investments (excluding releases of impairment following sales).
On September 5, 2007, AXA completed the sale of its Dutch operations, comprising 100% of AXA Netherlands, Winterthur Netherlands and DBV Netherlands.
(a) Also includes changes in liabilities arising from insurance contracts and investment contracts where the financial risk is borne by policyholders. (b) Including SPEs and CDOs previously disclosed in the Other Financial Services segment which has been renamed “Banking”.
Provisions for risks and charges 4,788 2,844 307 166 159 580 — 8,845
(d) Including SPEs and CDOs previously disclosed in the Other Financial Services segment which has been renamed “Banking”.
The main acquisitions of the year 2007 were the following: — Acquisition of 100% of Alpha Insurance (a subsidiary of Alpha Bank) for €255 million. AXA and Alpha Bank, Greece’s second largest bank, have signed a long–term exclusive agreement to pursue and strengthen the existing bancassurance partnership. The transaction closed on March 28, 2007.
5.3.3. Winterthur acquisition (2006) and 2007 adjustments to the opening balance sheet
At December 31, 2007, the net value of this goodwill was €31 million.
Impacts on VBI of changes in scope and portfolios transfers 105 2,555 —
7.2. ROLLFORWARD OF DEFERRED ACQUISITION COSTS AND EQUIVALENT — LIFE & SAVINGS Changes in deferred acquisition costs and equivalent for Life & Savings were as follows: (in Euro million)
Macro hedge and speculative derivatives — — — — — — — — —
Breakdown of the carrying value and fair value of investment properties at amortized cost, excluding the impact of all derivatives: (in Euro million)
(a) Net of impairment — including premiums/discounts and related accumulated amortization. (b) Net of impairment (details in note 9.8).
Non quoted fixed maturities (amortized cost) — — — — — 1 1 1 — — 2 2 2 — —
Loans at fair value through profit and loss (a) 21 19 43 84
Fixed maturities at fair value through profit and loss (a) 54 35 693 782
(b) The carrying value of non controlled investment funds — Equity method is disclosed in the fair value column.
Banque de marchés et d’arbitrage 7 — — — — 7
Banque de marché et d’arbitrage 9 — 2 — — 11
Receivables arising from banking activities 17,651 (391) 17,260 17,176 14,456 (393) 14,063 14,026 12,818 13,072
(a) Fair value is equal to net carrying value. (b) Including SPEs and CDOs previously disclosed in the caption “Arising from banking activities”.
700 M £ (TSS) (October 16, 2007) 6.772 % not before 12 years GBP 700 952 — — — —
AXA shares by AXA Financial following the exercise of call options contracted during 2004 to cover AXA Financial’s employee stock option plans.
At December 31, 2005, the carrying value of treasury shares and related derivatives was €658 million, representing 1.92% of outstanding ordinary shares. This figure included €37 million relating to AXA shares held by consolidated mutual funds (2.2 million shares) not used to back contracts where the financial risk is borne by policyholders. At December 31, 2005, 4.5 million treasury shares backing contracts where the financial risk is borne by policyholders were not deducted from shareholders’ equity (as they were held in controlled funds). Their total estimated historical value was €80 million and their market value €124 million at end 2005.
Shadow accounting on Value of purchased Business In force (266) (394) (694)
Accrued interests — Deeply subordinated debt — — — — — — — — (290) — — (290) —
Capital in excess of nominal value — — — (966) — — — — — — — (966)
Total recognized income and expense for the period (SORIE) — — — 2,393 22 3 — 1,361 3,903 7,683 717
Reinsurers’ share in liabilities arising from insurance contracts 4,613 2,298 4,340 11,250 4,818 2,206 4,913 11,937 4,230 1,956 2,834 9,020
Reinsurers’ share in future policy benefit reserves 3,994 — 6 4,000 4,217 — 11 4,228 3,710 — 8 3,718
(b) See note 1.12.2. — Reserves mesured according to the option opened by IFRS 4.24 for selective re-measurement of reserves at current market assumptions. (c) as described in note 1.12.2, the adoption of FRS27 in the United Kingdom has led to adjustments to 2005 (see the first paragraph of this note). (d) In accordance with IFRS 3, i.e. within 12 months following the acquisition date, the Group has adjusted certain items impacting the allocation of Winterthur purchase price.
— In Canada, the entry of Citadel in the scope of consolidation (€250 million).
— In South Korea, the entry of Kyobo Auto in the scope of consolidation (€25 million).
(a) Also includes interests credited, policyholders participation, adjustments on contracts where the financial risk is borne by policyholders. (b) Internal AXA transfers. (c) As described in note 1.12.2 on accounting principles, the adoption of FRS 27 in the United Kingdom led to restatements to 2005 (see the first paragraph of this note). (d) In accordance with IFRS 3, i.e. within 12 months following the acquisition date, the Group has adjusted certain items impacting the allocation of Winterthur purchase price.
In 2007, changes in the scope of consolidation totaled €3,780 million, mainly due to: — The disposal of the Netherlands (€—9,890 million). — The transfer of €—2,495 million towards pension liabilities in Switzerland.
— The entries in the scope of consolidation of AXA-MPS Vita
Features in investment contracts with Discretionnary Participation Features (DPF) measured with current assumptions (b) — — —
Cumulative Payments to date / Projected Ultimate Cost 61% 61% 66% 61%
(b) In accordance with IFRS 3, i.e. within 12 months following the acquisition date, the Group has adjusted certain items impacting the allocation of Winterthur purchase price.
The deferred policyholders’ participation liability also includes the impact of shadow accounting (see definition in 1.12.2) mainly in relation to unrealized gains and losses on invested financial assets available for sale as described in 13.2.1.
Impact of foreign exchange fluctuations (9) — — — (5) (14) 39
Debt component of subordinated convertible notes, 3.75% due 2017 (euro) 1,212 1,168 1,127
Financing debt owed to credit institutions 175 175 95 95 17 17
At December 31, 2006, Winterthur’s contribution to €89,976 million total payables amounted to €9,262 million.
HOHO 4: class B Subordinated Class B Floating rate notes, maturity 2083, 3 months Euribor + 0.35%, Floating — 10 —
Debt instruments issued (other than financing debt) (a) 202 693 895 594 3,536 4,129 726 782 1,508
17.5. EXPOSURE TO INTEREST-RATE RISk AND CONTRACTUAL MATURITIES The tables below set out the contractual maturities of other debt instruments issued, notes and bank overdrafts (excluding the impact of derivatives). Effective maturities may differ from those presented, mainly because some instruments include clauses allowing early redemption, with or without penalty.
Carrying value of other debt instruments issued, notes and bank overdrafts by contractual maturity as at December 31,
Total carrying value 12 months or less More than 1 year up to 5 years More than 5 years
Policyholders tax is a specific tax levied on the life business of UK and Australian insurance companies charged to policyholders.
Deferred tax through reserves relating to the fair value adjustment of cash flow hedge derivatives (28) — 26 — (1) (3)
Deferred tax through reserves relating to the revaluation of tangible assets (1) — — — — (1)
Policyholder tax — Deferred tax through profit & loss (1,026) (157) — (23) (61) (1,268)
Total net deferred tax assets / liabilities (3,580) 37 660 55 (834) (3,663)
Deferred tax through reserves relating to the revaluation of tangible assets — — (1) — — (1)
Net deferred tax assets / (liabilities) excluding policyholder tax (2,474) 197 (29) (119) (124) (2,547)
Policyholder tax — Deferred tax through reserves relating to the fair value adjustment of avalaible for sale investments (5) — (2) — — (7)
Maturity of notional amount as at December 31, 2007 (a) Notional amount Positive fair value Negative fair value Net fair value Change in fair value 2007/2006< 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years > 5 years December 31,
Calls sold — — — — — — 108 — 108 —
AXA uses derivative instruments to manage various types of risks, including interest rate risk, exchange rate risk, credit risk and hedging of some equity and real estate exposures.
The notional amounts of swaps used in cash flow hedge relationships totaled €1,578 million (€1,230 million at the end of 2006 and €1,050 million at the end of 2005), including €521 million of interest-rate swaps in Belgium (Life & Savings business), €598 million in Germany in CDO investments, and €289 million of interest-rate swaps at the Australian holding company.
Additionally, AXA’s United States insurance operations use forwards and futures for the dynamic risks management program associated with the guaranteed minimum benefits on unit-linked products.
Fixed maturities available for sale 241,220 (9) 556 241,766 4,933 1 — 4,935 246,153 (8) 556 246,701
Derivative instruments relating to financing debt and other financial liabilities subject to hedge accounting (626) (15) (642) 2 (781) (780) — (784) (784)
At December 31, 2006, Winterthur contributed €68,483 million and €14,675 million to Life & Savings liabilities arising from insurance contracts and liabilities arising from investment contracts, respectively.
20.2.4. Liabilities arising from insurance contracts in the Property & Casualty and International Insurance segments
(a) Including fixed maturities held by consolidated investment funds, designated at fair value through profit & loss. (b) Including equity securities held by consolidated investment funds, designated at fair value through profit & loss.
Net investment income is presented net of impairment charges on directly-owned investment properties, and net of amortization of fixed maturities’ premiums/discounts. All investment management fees are also included in the aggregate figure.
Realized investment gains and losses include write-backs of impairments following investment sales.
The change in financial instruments impairment includes impairment charges on investments, and releases of impairment reserves only following a recovery in value. Writebacks of impairments following investment sales are included in the net realized capital gains or losses on investments aggregate.
The assumptions for each plan are consistent with the economic features of the countries in which the liabilities lie. The weighted-average assumptions used by AXA for pension plans in the principal regions in which AXA operates were as follows: DECEMBER 2007 ASSUMPTIONS
Adjustment due to separate assets (23) (232) (210) — — —
Experience adjustments on plan assets (33) 141 426 (3) (5) 3
The table below shows the plan asset mix at the end of 2007: Total Group Europe North America Other
The table below shows the total asset mix i.e, for plan assets and separate assets: Total Group Europe North America Other
(c) Except for number of shares (million of units) and earnings per share (Euro). (d) Following any significant capital increase with a stock price lower than the market price, average number of shares and consequently net income per share over each period shall be restated to take into account this event (application of an adjustment factor of 1.019456). (e) Basic and diluted net income per share from discontinued operations represented €0.05 for full year 2005, €0.06 for full year 2006 and €0.23 for full year 2007. (f) As described in note 1.11.2, perpetual subordinated notes were reclassified under shareholders’ equity in 2006 with retrospective application to 2005. Details are provided in note 13.
Pledged securities and collaterized commitments given totaled €14,601 million at the end of 2007, and mainly consisted of: — €8,407 million in Japan Life & Savings, including securities given as guarantees for cash deposits received in securities lending transactions (€7,478 million), securities pledged as part of derivative transactions (€198 million), securities given as guarantees for short-term security borrowings by Japanese entities (€711 million) — commitments were also received on these products.
— A putative class action entitled Eagan, et al. v. AXA Equitable Life Insurance Company was filed in the District Court for the Central District of California in December 2006 against AXA Equitable as plan sponsor and fiduciary for an ERISA retiree health plan. The action was brought by two plan participants on behalf of all past and present employees and agents who received retiree medical benefits from AXA Equitable at any time after January 1, 2004, or who will receive such benefits in 2006 or later, excluding certain retired agents. Plaintiffs allege that (a) AXA Equitable’s adoption of a revised version of its retiree health plan in 1993 (the “1993 Plan”) was not authorized or effective, (b) that AXA Equitable has therefore breached the retiree health plan by imposing the terms of the 1993 Plan on plaintiffs and other retirees, (c) even if the 1993 Plan is controlling, AXA Equitable has violated the terms of the retiree health plan by imposing health care costs and coverage on plaintiffs and other retirees that are not authorized under the 1993 Plan, and (d) AXA Equitable breached fiduciary duties owed to plaintiffs and retirees by allegedly misrepresenting and failing to disclose information to them. The plaintiffs seek compensatory damages, restitution and injunctive relief prohibiting AXA Equitable from violating the terms of the applicable plan, together with interest and attorneys’ fees. In March 2007, AXA Equitable filed a motion to dismiss. In September 2007, AXA Equitable answered the amended complaint. In October 2007, a discovery and motion schedule was set, with a trial date of May 2009.
Following our appointment as statutory auditors by your Annual General Meeting, we have audited the accompanying consolidated financial statements of AXA for the year ended December 31, 2007.
The consolidated financial statements have been approved by the Management Board. Our role is to express an opinion on these financial statements based on our audit.
As of December 31, 2007, all members of the Management Board were in compliance with this requirement.
Determining the main risks faced by a business is a crucial part of the internal audit planning process. it ensures that internal audit assignments focus on those areas of highest risk. in addition, internal and external auditors hold meetings to exchange views on the risks that the group faces and to consider action plans by the business to mitigate risk.
The group compliance and Ethics guide was adopted by the Management board in 2004. The guide applies to all group companies and employees, subject to compliance with local legislation and is available on the group website (www.axa. com) under the heading “corporate governance”.
out by teams that liaise with subsidiaries on a full-time basis. in particular, these teams review: — restatements of local gAAP to comply with group
Standards and consolidation principles, — all items in the financial statements, including: • information provided to the investor relations
it is the role of the chairman of the Supervisory board to give an account, in his report, notably of the conditions in which the duties of the Supervisory board are prepared and organized and of the internal control procedures in place within the company. it is our responsibility to report to you our observations on the information set out in the chairman’s report on the internal control procedures relating to the preparation and processing of financial and accounting information to establish the consolidated financial statements in accordance with iFrS, as adopted by the European union.
Pricewaterhousecoopers Audit Mazars & guérard yves Nicolas — Eric Dupont Patrick de cambourg — Jean-claude Pauly
Pursuant to Article 222-7 of the AMF general regulations, the table below sets forth all information published or otherwise made public by the company over of the previous twelve months, in one or more States that are party to the Agreement on the European Economic Area (EEA) or in one or more countries outside the EEA in order to fulfill the legal or regulatory obligations in those countries with respect to financial instruments, issuers of financial instruments or financial markets.
AXA to sell its Dutch operations to SNS Reaal for e1,750 million (06/04/2007)
AXA launches e100 million research fund to promote academic research (10/10/2007)
AXA to buy-out Oyak’s 50% stake in AXA Oyak, Turkey’s 2nd largest insurer (02/06/2008)
Notice of Meeting (Shareholders’ Meeting to be held on 04/22/2008) (02/29/2008)
DoCumENtS PERtAININg to tHE ComPANy The following documents may be consulted at the AXA group legal Department located 21, avenue Matignon — 75008 Paris (France) during normal business hours in 2008 and in 2009 until the filing of AXA’s next Annual report (Document de référence): — The bylaws of the company; — The reports and other documents prepared by any expert at the company’s request, any part of which is included onto or referred to in this Annual report; — The parent company financial statements as well as the consolidated financial statements of the company for each of the two financial years preceding the publication of this Annual report.
mAZARS & guÉRARD: Exaltis — 61, rue Henri régnault — 92075 Paris-la Défense cedex, represented by Mr. Patrick de cambourg and Mr. Jean-claude Pauly, first appointed on June 8, 1994. The current appointment is for a term of 6 years, until the Annual general Meeting of the shareholders called to approve the financial statements for the fiscal year 2009.
other services rendered by the networks to the fully integrated subsidiaries
The authorizations to issue shares or other type of securities that were valid as of December 31, 2007 are summarized in the tables below: Issues with preferential subscription rights granted to shareholders
— capital gains, net of provision release, amounted to €288 million and primarily included the gain of €350 million linked to the transfer of AXA Japan Holding shares within the group.
Shareholders’ equity, before 2007 net income and after payment of dividends in respect of the prior year was €28,768 million. This represents a reduction of €1,188 million, which was attributable to: — the cancellation of 63 million AXA shares with a value of €1,899 million under the share repurchase program aimed at controling dilution resulting from the exercise of stock subscription options and employees’ Shareplan program, and at hedging the allotment of free shares to employees,
financial debts rose by €3,602 million to €8,576 million, including €978 million linked to commercial paper issues, with €1,950 million corresponding to short-term loans granted by group entities and €790 million in debt in connection with the acquisition of Hispanowin.
Total assets at December 31, 2007 were €55,608 million, compared with €51,707 million at December 31, 2006.
Tangible assets are recognised at acquisition cost or transfer value. buildings are depreciated using the straight line method over fifty years, and fitting out work is depreciated over five or ten years as appropriate.
Foreign currency receivables and liabilities are adjusted at the balance sheet date exchange rate. The matching item for this adjustment is a translation variance asset account where the difference is an unrealized loss, and a translation variance liability account where there is an unrealized gain. These items do not pass through the income statement but a provision for foreign exchange risk is created to recognize unrealized losses relating to the translation variance asset.
This report, together with the Statutory Auditors’ report addressing financial and accounting information in the chairman’s report on internal control, should be read in conjunction with, and construed in accordance with, French law and professional auditing standards applicable in France.
2007 lIfE & SAVINgS NEw BuSINESS VAluE Euro million, except when otherwise noted group share
New Business Value 1,772 operating Return on life & Savings EEV 4,229
lIfE & SAVINgS EuRoPEAN EmBEDDED VAluE SENSItIVItIES The sensitivity of the life & Savings EEV and NbV to changes in major assumptions has been calculated as follows for the 2007 values (measured in Euro million, group share): lIfE & SAVINgS EEV SENSItIVItIES Euro million — group share life & Savings EEV Impact life & Savings NBV Impact
The term of office of Mr. Jacques Tabourot as a member of the Supervisory board, who was appointed in 2004 on the recommendation of the employee shareholders mentioned in Article l.225-102 of the French commercial code (code de commerce), is set to expire at the close of this Meeting. Accordingly, we are asking you to designate his replacement, who will serve for a term of four years. in compliance with applicable regulations and with Article 10. c of the bylaws of your company, in early 2008 the Management board conducted the process of consulting AXA group employee shareholders, via a direct consultation of the latter (the “Direct Process”) and via a vote of the Supervisory boards of FcPE (Fonds communs de Placement d’Entreprise) mutual-type funds with indirect voting rights (the “indirect Process”). Once these consultations were completed, seven candidates were selected under the direct process (for each of these candidates, the percentage of votes received during the official voting process is indicated): Ms. wendy cooper (44.56%) and Messrs Francis Allemand (3.51%), gilles bernard (4.12%), Alain chourlin (2.91%), rodney koch (7.68%), Jason Steinberg (4.28%) and Andrew whalen (19.01%). under the indirect process, two candidates were selected: Mr. Frédéric Souhard, designated by the French
III — Authorization enabling the Company to buy shares of its own stock and, as the case may be, to cancel these shares
The Management board recommends that this authorization would cancel and replace the unused portion of the authorization granted by the Shareholders at their Meeting of May 14, 2007, under the thirteenth resolution. if passed, it will remain in force for a period of not more than 18 months, starting from the date of this Shareholders’ Meeting.
The 2007 financial year has been another very good year in terms of results, which confirms the profitability and the strong internal growth pace of the AXA group, its capacity to manage significant external growth transactions constituting a valuable contribution and the relevance of the group strategy.
we have no particular matter to express on the projected terms and conditions.
This capital increase is being submitted to your approval pursuant to Articles l.225-129-6 of the French commercial code and l.443-5 of the French labour code.
your Management board is required to prepare a report in compliance with Articles r.225-113 and r.225-114 of the French commercial code. Our role is to assess on the fairness of the financial information taken from the financial statements, on the proposed waiver of preferential subscription rights and on certain other disclosures pertaining to the issuance and contained in this report.
it is specified that: — The discount may not exceed 20% of the average prices of the AXA stock on the Paris Stock Exchange during the twenty trading days preceding the Management board’s decision setting the starting date of subscription.
we performed our work in accordance with the standards of our profession applicable in France. These standards require us to perform procedures to examine and verify the content of the Management board report on this transaction and the methods used to determine the issue price of the equity securities to be created.
we performed our work in accordance with the standards of our profession applicable in France. Those standards require that we plan and perform procedures to verify the fairness of the information provided in the report of the Management board and the fairness of the terms and conditions under which the issue price is being determined.
This transaction is related to the share repurchase program under which the company may repurchase its own shares up to a maximum of 10% of its share capital under the conditions set forth in Article l.225-209 of the French commercial code. This program is also being submitted for approval by the Shareholders’ Meeting (15th resolution), and would be granted for a period of eighteen months.
This Meeting delegated authority to the Management board to carry out such transactions over a period of twenty-six months, up to a maximum nominal amount of €150 million.
As for the dividend received from January 1st, 2008, the beneficiaries who have opted for a flat deduction at source will not be entitled to the aforementioned tax relief.
The Shareholders, having fulfilled the quorum and majority requirements pertaining to ordinary general meetings, having reviewed the Management board report, and Article 10. c of the company’s bylaws in particular, and upon the recommendation of the employee shareholders mentioned in Article l.225-102 of the French commercial code, — hereby appoint Mr. Francis Allemand to serve as a member of the Supervisory board, replacing Mr. Jacques Tabourot, whose term of office expires at the end of this general Meeting, for a four-year term, as provided for in Article 10. c of the company’s bylaws, expiring at the close of the general Meeting of Shareholders in 2012 called to approve the financial statements for the year ending December 31, 2011; — also decide that (i) in the event that several of the resolutions numbering from the sixth to the fourteenth resolution receive more votes in favor than a majority of all the votes to which the shareholders present today or duly represented may cast, only that resolution receiving the highest number of votes in favor shall be considered as having passed; the other resolutions in the aforementioned series shall be considered as rejected; and finally decide that (ii) in the event that none of the resolutions numbering from the sixth to the fourteenth resolution receive more votes in favor than a majority of all the votes to which the shareholders present today or duly represented may cast, then no candidate shall be appointed to serve as a member of the Supervisory board by the present general Meeting.
Appointment of Mr. Hans Nasshoven to serve as a member of the Supervisory Board, upon the recommendation of the employee shareholders of the AXA Group
Appointment of Mr. Andrew Whalen to serve as a member of the Supervisory Board, upon the recommendation of the employee shareholders of the AXA Group
The Management board may delegate, to any person authorized by law, full authority to carry out the share capital increase, as well as the authority to postpone it, to the extent and in accordance with the terms and conditions that it may define in advance.
The Shareholders, having fulfilled the quorum and majority requirements pertaining to extraordinary general meetings, and having reviewed the Management board report and the Auditors’ Special report, 1) Hereby authorize the Management board, pursuant to the provisions of Article l.225-209 of the French commercial code and subject to the approval of the fifteenth resolution hereabove, to cancel, in one or more times, the shares acquired by the company by virtue of the fifteenth resolution of this general Meeting, within the limit of 10% of the company’s share capital within any given 24-month period, and to reduce the company’s share capital accordingly; 2) grant full authority to the Management board, which may delegate such authority, to effect this capital reduction or reductions, and in particular to decide the amount of such capital reduction, to determine its terms, to amend the bylaws accordingly and, more generally, to undertake all steps and formalities and make all disclosures that are required.
Vice-Chairman and director bred banque Populaire Assurances Mutuelles le conservateur Associations Mutuelles le conservateur
Philosophy Degree — university of Paris iV law Masters — university of Paris i graduate of the institute of Political Sciences (SciencesPo Paris) certificat d’Aptitude à la Profession d’Avocat (cAPA)
Number of AXA shares Number of units held as of December 31, 2007 in AXA Mutuals funds invested in AXA shares: 8,142
Fordham law School, New york, Ny J.D. Associate Editor Fordham law review Allegheny college, Meadville, PA b.A. Magna cum laude, Phi beta kappa
The provisions of the master agreement (“Accord-cadre”) on work organization, scheduling and the reduced workweek, signed on February 1, 2000, do not apply to the company’s employees.
you will find below the references to the extracts of the Document de référence corresponding to the parts of the Management board’s report as approved by the Management board of the company.
1. Business and trends / Earnings / Financial position and key performance indicators 44 to 113 and 410 to 430 2. Use of financial instruments by the Company when relevant for assessing its assets and liabilities, financial position, and profits and losses 3. Description of major risk factors and uncertainties 166 to 194 4. Acquisition of significant equity interests in companies headquartered in France n/a 5. Events subsequent to fiscal year end / Outlook 54; 372 and 106 6. Dividend distributions over the last three years 8 7. Information on market and liquidity risks (interest rate, exchange rate and stock price fluctuation risk)