(ii) reinvestment of previous results to support business development and (iii) an attractive dividend for shareholders.
Sale by AXA UK of its primary Life and Pensions businesses to
(c) Includes Spain, Italy, Portugal, Greece, Morocco, Turkey, Mexico, Colombia and the Gulf Region.
AXA Corporate Solutions Assurance reviews annually its exposure to ensure that the risks underwritten are diversifi ed geographically and by lines of business in order to manage concentration risk. In 2014, AXA Corporate Solutions Assurance ceded €779 million of premiums (2013: €865 million) to thirdparty reinsurers.
AllianceBernstein’s offering includes: ■ diversifi ed investment management services through separately managed accounts, hedge funds, Mutual funds, and other investment vehicles to private clients (such as high net worth (individuals and families), trusts and estates, and charitable foundations); ■ management of retail Mutual funds for individual investors; ■ management of investments on behalf of institutional clients; and
AXA Banque had approximately 720,000 registered customers (1) at the end of 2014, with a retail banking product offer. Directly linked with the Group’s insurance business, banking products are offered to AXA France clients through its distribution networks. AXA Banque also manages direct clients through internet banking relationships.
United Kingdom - Platform funds under management 2.5 2.4 Fundscape and Platforum reports for UK platform market as of September 30, 2014 and Platforum and Pridham reports for UK platform market as of September 30, 2013 (measure on APE individual life in-force business).
India 14 1.5 14 1.25 IRDA statistics as of September 30, 2014 for 2014 and December 31, 2013 for 2013 data (measured on weighted new business premium).
After several years of soft underwriting conditions, corporate risks insurance pricing conditions continued to tighten in 2014, across all business lines.
(2) Ranking established by AXA based on information available at the end of September 2014.
AXA completed the acquisition of 51% of colpatria’s insurance operations in Colombia
AXA has completed the acquisition of a majority stake in Mansard Insurance plc in Nigeria
MPF and ORSO operations, in line with the Group’s in-force management approach of reviewing non-strategic portfolios, and to increase AXA Hong Kong’s focus on Protection &
objectives. It would create a unique opportunity for AXA to maximize value through market consolidation while ensuring that existing scheme members will continue to benefi t from a high quality of service. Moreover, the distribution agreement with The Principal, a leading provider of Retirement solutions in
Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to take place in the third quarter of 2015.
‘Aa3’ insurance fi nancial strength ratings of AXA’s main operating subsidiaries. The rating agency has also changed the outlook from negative to stable on all ratings.
Property & Casualty gross revenues were up 2% on a reported basis and up 1% on a comparable basis to €29,460 million in 2014. Personal lines increased by 1%, primarily in Direct, France and Switzerland. Overall, average tariff increases amounted to 2%. Commercial lines increased by 2% mainly driven by the United Kingdom & Ireland, France and Asia.
AllianceBernstein revenues were up 4% (or €+86 million) on a comparable basis to €2,175 million mainly driven by higher management fees (€+77 million) resulting from higher average
(b) For the periods ended December 31, 2014 and December 31, 2013, “the change in fair value of assets backing contracts with fi nancial risk borne by policyholders” impacted the net investment result for respectively €+9,520 million and €+22,180 million, and benefi ts and claims by the offsetting amounts respectively.
(€-112 million) driven by the non-repeat of assumption updates that resulted in a favorable impact on Unearned
• lower expense ratio by 0.5 point to 26% with (i) 0.3 point reduction in the acquisition expense ratio driven by both productivity gains and decrease in commission ratio and
International insurance underlying earnings amounted to €208 million. On a constant exchange rate basis, underlying earnings increased by €4 million (or +2%) mainly attributable to (i) favorable developments on run-off portfolios at AXA
Adjusted earnings (Euro per Ordinary Share) 2.15 2.14 2.05 2.03 5% 5%
■ G/A Protection & Health sales (44% of APE) increased by €63 million (+10%) mainly driven by a €74 million increase in
Expenses increased by €32 million (+1%) to €-2,317 million: ■ acquisition expenses fell by €39 million (-3%) to €-1,397 million, mainly driven by €+126 million of change of deferred acquisition costs mainly due to a €+80 million exceptional adjustment (offset in Unearned Revenues
Gross revenues increased by €166 million (+1%) to €11,470 million. On a comparable basis, gross revenues increased by €402 million (+4%): ■ Variable Annuity revenues (71% of gross revenues) increased by €371 million (+5%) refl ecting strong sales of fl oating roll up rate GMxB and Employer Sponsored products; ■ life revenues (20% of gross revenues) decreased by €24 million (-1%) primarily driven by lower sales of Protection products and lower renewal premiums in Unit-Linked; ■ asset management fees (7% of gross revenues) increased by €33 million (+4%), refl ecting improved market conditions and sales; ■ Mutual fund revenues (2% of gross revenues) increased by €22 million (+13%), refl ecting higher advisory fees received and increase in sale volumes.
As a result, the underlying cost income ratio decreased by 10.3 points to 62.7%.
Underlying earnings increased by €201 million (+36%) to €760 million. On a comparable basis, underlying earnings increased by €248 million (+48%).
Net capital gains or losses attributable to shareholders net of income tax (5) 0
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 2013 annual accounts exceptionally covered a period of fi fteen months.
Amortization of VBI decreased by €34 million (-41%) to €-48 million. On a comparable basis, VBI amortization decreased by €11 million (-17%) mainly driven by various assumption changes.
As a result, the underlying cost income ratio improved by 3.2 points to 58.3%.
On a constant exchange rate basis, fees & revenues increased by €14 million (+5%) mainly resulting from higher loadings on regular premiums and higher Individual Life revenues.
Adjusted earnings increased by €33 million (+10%) to €351 million. On a constant exchange rate basis, adjusted earnings increased by €29 million (+9%) mainly resulting from higher underlying earnings.
Net capital gains or losses attributable to shareholders net of income tax 111 22
Gross revenues decreased by €69 million (-18%) to €320 million. On a comparable basis, gross revenues decreased by €16 million (-5%) mainly driven by lower Unit-
On a constant exchange rate basis, net income increased by €2 million (+1%) driven by higher adjusted earnings
(€+31 million), partly offset by an unfavorable change in the fair value of interest rate hedging derivatives not eligible for hedge accounting (€-28 million).
Profi t or loss on fi nancial assets (under FV option) & derivatives (69) 20
to €589 million mainly driven by €+71 million exceptional distributions from Mutual funds.
Expense Ratio decreased by 1.3 points to 29.3% mainly driven by a 0.9 point decrease in the acquisition ratio to 20.6%
Profi t or loss on fi nancial assets (under FV option) & derivatives (9) (25)
On a constant exchange rate basis, net income increased by €32 million (+8%) mainly driven by higher adjusted earnings and by the positive change in the fair value of private equity and hedge funds.
(€-78 million) especially from decreased contribution of partnerships; ■ Other lines (0% of gross revenues) were down 5% to €9 million.
Excluding Colombia the combined ratio was up by 1.1 point to 100.3%.
Net technical result increased by €42 million (+8%) to €539 million. On a constant exchange rate basis, net technical result increased by €42 million (+8%): ■ the current accident year loss ratio increased by 1.0 point to 78.2% due to (i) higher Nat Cat charge (+0.1 point)
As a result, the combined ratio deteriorated by 0.8 point to 93.9% on a comparable basis.
Net banking revenues decreased by €1 million (-3%) to €21 million.
On a constant exchange rate basis, net income increased by €64 million (+33%) refl ecting adjusted earnings evolution and a favorable change in fair value of cross currency swaps.
The potential negative impact on 2015 underlying earnings resulting from increasingly low interest rates is currently expected to be largely offset by the revaluation of the US Dollar and the Swiss Franc relative to the Euro.
(including interest charges related to undated debts recorded through shareholders’ equity), divided by the weighted average number of outstanding ordinary shares.
(€20.8 billion at December 31, 2013) and less the net consolidated book value of its equity interests in credit institutions, investment companies and other fi nancial institutions: €4.9 billion (€4.1 billion at December 31, 2013).
The Company has issued dated subordinated notes (“TSR”), undated subordinated notes (“TSDI”), and undated deeply subordinated notes (“TSS”), which include provisions designed to allow the Company to ensure the continuity of its activities in the event its fi nancial position deteriorates.
In accordance with the methods of calculation implemented by AXA in line with existing regulations, AXA’s consolidated solvency ratio under the current solvency I regime amounted to 266% at December 31, 2014 compared to 221% at the end of 2013. This change resulted mainly from higher unrealized capital gains on fi xed income assets. This 2014 solvency margin calculation will be reviewed by the ACPR.
On October 15, 2014, S&P reaffi rmed the A+ financial strength rating on the core operating entities of the AXA Group and the
chose to adopt, in 2008, the Corporate Governance Code for listed corporations (Code de gouvernement d’entreprise des sociétés cotées) published by the Afep (Association française des entreprises privées) and the Medef (Mouvement des
Board is benefi cial to the effi ciency and overall quality of the
is specifi c to the circumstances of the Group at this point in its evolution and to the unique qualities of Mr. de Castries and, consequently, it will continue to re-examine this question as circumstances evolve.
Board of Directors’ meeting. Prior to each meeting, the Board members receive documentation concerning matters to be reviewed, generally eight days in advance. In accordance with the Board of Directors’ Bylaws, they are also informed by the
Chief Executive Offi cer on a regular basis of the Company’s fi nancial condition as well as any signifi cant event or transaction involving the Company or the Group.
During the 2014 fi scal year, the Lead Independent Director attended all meetings of the Board of Directors (nine meetings)
Foreign Trade, from 1991 to 1993. Mr. Paul Hermelin joined the
January 1st, 2002, he is Chief Executive Offi cer of the Capgemini
specify that “each member of the Board of Directors shall be required to inform the Company of any situation concerning her/ him which may create a conflict of interest with the
Committee collected, through individual interviews or written answers to a questionnaire, the views and suggestions of each director.
During this assessment, the members of the Board expressed a very favorable opinion on the global functioning of the
(reports from Internal Audit, Compliance, Risk Management, IT security, the Group’s Internal Financial Control (IFC) function, and the Global Business Lines…); ■ Solvency II and ORSA report (Own Risk and Solvency Assessment); ■ Risk Management Framework, Risk Appetite and Reporting; ■ the results of internal and external audit work; and
The Finance Committee met fi ve times in 2014. The average attendance rate was 100%.
The Compensation & Governance Committee met fi ve times in 2014. The average attendance rate was 100%.
(b) In 2014, the decrease by 201 in France was driven by natural leaves.
(i) In 2014, the increase by 500 in AXA Assistance was mainly driven by business growth, notably in Mediterranean and Latin American Region and Asia.
(j) In 2014, the increase by 164 in AllianceBernstein mainly refl ected business growth.
in terms of stock capitalization, revenues, sector, number of employees and/or geographic coverage); ■ a second market composed exclusively of international fi nancial companies comparable in size and scope to the
For the other members of the Management Committee, variable compensation is also determined on the basis of an individually predefi ned target amount and was based, in 2014, on three metrics: ■ Group performance, as measured by the underlying earnings per share, return on equity (adjusted Return on Equity -
Chief Executive Offi cer and the Deputy Chief Executive Offi cer).
SUMMARY OF THE MANAGEMENT COMMITTEE MEMBERS’ COMPENSATION FOR THE YEAR 2013
During the fi scal year 2014, none of the members of the Board of Directors, except for its Chairman and the Deputy Chief
Chief Executive Offi cer and the other members of the Executive
On December 31, 2014, approximately 10,300 AXA employees had a total of 63,333,745 outstanding options, representing 2.59% of the Company’s share capital on the same date, and 517 employees in the United States had a total of 1,105,204 outstanding purchase options on AXA ADS, representing 0.05% of the share capital.
Number of options exercised at 31/12/2014 - - - - - - - - - -
Date of the Shareholders’ meeting 22/04/2008 22/04/2008 22/04/2008 22/04/2008 22/04/2008 22/04/2008 27/04/2011 27/04/2011 27/04/2011 27/04/2011
STOCK OPTIONS HELD BY EXECUTIVE OFFICERS (OPTIONS GRANTED BUT NOT EXERCISED AS AT DECEMBER 31, 2014)
Performance Units/Shares which is used as a reference to calculate the actual number of units or shares that will be defi nitely granted at the end of a 3-year performance period.
Group as well as the benefi ciary’s operational entity/business unit’s performance, according to pre-determined targets.
Company’s executive offi cers already met their Minimum Shareholding Requirement such as described in the above Section “Share ownership policy for executives of the Group”. The following table summarizes the compensation granted to executive offi cers during the fi scal year 2014: Compensation paid in 2014 Shareholding requirement Shareholding on 12/31/2014
The payment of the severance benefi t should be also subject to performance conditions. During its meeting held on February 20, 2014, upon the proposal of the Compensation & Governance Committee, the Board of Directors authorized the execution of a new agreement between the Company and Mr. Denis Duverne in order for the payment of the severance benefi ts to be subject, from now on, 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 75% of his variable compensation target; 2. evolution of the AXA share price at least equal to the stock reference index of the insurance sector (SXIP) (in percentage) over a 3-year period preceding the termination of the term of offi ce; 3. average adjusted Return On Equity (adjusted ROE) over the three preceding consolidated fi scal years higher than or equal to 5%.
The initial amount of the severance benefit would be equal to 12 months of the average compensation (fixed and variable) paid during the 24-month period preceding termination for Mr. Denis Duverne. One month will be added to the initial amount of the severance benefit for each additional year of future service up to a maximum cap of 24 months.
In addition to the details reported around the Group effective tax rate, AXA is reporting substantial information on the impacts of any change in local tax regulations on its business, as well as details of the tax burden per line of business and per country.
These principles and standards are reflected in a variety of regulations and legislative initiatives that have been enacted over the past years in various jurisdictions where the Group does business. While these restrictions are often aimed primarily at the banking sector and do not apply uniformly to the Group across the various jurisdictions where it does business, the Group has largely 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 certain competitive issues for the Group, including our ability to attract and retain top-rate talents.
Supervisors (“IAIS”) published an initial assessment methodology for designating GSIIs, as part of the global initiative launched by the G20 with the assistance of the FSB
Our results of operations are materially affected by conditions in the global fi nancial markets and the economy generally. We have been affected by the fi nancial crisis and its aftermath since 2008. While fi nancial markets generally stabilized and performed well in 2014, a wide variety of factors continue to negatively impact economic conditions and consumer confi dence in certain jurisdictions where we do business and/or contribute to continuing volatility in fi nancial markets (including in foreign exchange and interest rates). These factors include, among others, continuing concerns over the creditworthiness of certain sovereign issuers, particularly in Europe, the strengthening or weakening of foreign currencies against the Euro, the availability and cost of credit, the stability and solvency of certain fi nancial institutions and other companies, the risk of future infl ation as well as defl ation in certain markets, central bank intervention in the fi nancial markets through “quantitative easing” or similar programs, volatile energy costs, the risk of a possible exit from the Eurozone of one or more European states, and geopolitical issues. Furthermore, certain initiatives from governments
Certain types of insurance and investment products that we offer expose us to risks associated with fl uctuations in fi nancial markets, including certain types of interest sensitive or variable products such as guaranteed annuities or v ariable a nnuities, which have crediting or other guaranteed rates or guaranteed minimum benefi ts not necessarily related to prevailing market interest rates or investment returns on underlying assets.
We have also entered into contractual outsourcing arrangements with third-party service providers for a wide variety of services required in connection with the day-to-day operation of our insurance and asset management businesses (including policy administration, claims related services, securities pricing and other services) which expose us to operational, fi nancial and reputational risk in the event of a default of our counterparty service providers. There can be no assurance that any such losses or impairments of these assets would not materially and adversely affect our business and results of operations.
Group Risk committees are supported by local Risk committees to ensure consistency and deployment of the Enterprise Risk
Upward shift of 100 bps in risk-free rates 2,020 4% (1,569) -3% 451 1% 1,346 3% (1,428) -3% (82) -0%
■ International Insurance business (2% of Group assets at the end of 2014 versus 2% in 2013): In the course of its business, AXA Corporate Solutions Assurance carries some insurance liabilities denominated in foreign currencies, particularly in US Dollar (€997 million at the end of 2014 versus €970 million in 2013) and, to a lesser extent, Pound
AXA regularly monitors its exchange rate hedging strategy and will continue to review its effectiveness and the potential need to adapt it taking into account impacts on earnings, value, solvency, gearing ratio and liquidity.
Government related bonds fair values (€256 billion) by country was as follows: Switzerland
AXA Global P&C level to build internal Group reinsurance pools by line of business.
Fund (see appendix VII) is a key contributor to AXA’s commitment to better understand climate change.
AXA, as an insurance company, follows an investment strategy that is mainly driven by Asset Liability Management (ALM). The overall objectives of all investment decisions are to ensure that
Group Chief Financial Offi cer (Group CFO). His role includes aligning AXA’s investment strategy with the broader strategy of the Group, fostering closer cooperation amongst local entities, enhancing methodology, and steering investment decisions.
Liabilities arising from investment contracts with no discretionary participating features 481 99 251
Net consolidated income – Minority interests 313 304 27 Earnings per share 1.95 1.76
(l) In 2014, the amount includes the assets and liabilities of the Mandatory Provident fund (MPF) and Occupational Retirement Schemes Ordinance (ORSO) businesses in Hong Kong that were classifi ed as held for sale.
These consolidated fi nancial statements including all notes were fi nalized by the Board of Directors on March 19 , 2015.
Income from investment accounted for using the equity method 131 139 8
Income, unless the recognition of the effects of changes in the liability’s credit risk in Other Comprehensive Income would create or enlarge an accounting mismatch in profi t or loss; ■ impairment: The impairment model under IFRS 9 refl ects expected credit losses, as opposed to incurred credit losses under IAS 39. Under the IFRS 9 approach, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, an entity always accounts for expected credit losses and changes in those expected credit losses. The amount of expected credit losses is updated at each reporting date to refl ect changes in credit risk since initial recognition; ■ hedge accounting: IFRS 9 introduces new requirements for hedge accounting that align hedge accounting more closely with risk management. The requirements establish a more principles-based approach to the general hedge accounting model. The amendments apply to all hedge accounting with the exception of portfolio fair value hedges of interest rate risk (commonly referred to as “fair value macro hedges”). For these, an entity may continue to apply the hedge accounting requirements currently in IAS 39. This exception was granted largely because the IASB is addressing macro hedge accounting as a separate project.
Consolidation: IFRS 11 May 6, 2014 January 1, 2016 * Guidance on how to account for the acquisition of an interest in a joint operation that constitutes a business.
asset corresponding to the present value of estimated future profi ts emerging on acquired business in force at the date of acquisition (also referred to as value of acquired business in force or VBI and refl ecting the difference between the fair value and the carrying value of the liabilities). The present value of future profi ts takes into consideration the cost of capital and is estimated using actuarial assumptions based on projections made at purchase date but also using a discount rate that includes a risk premium.
They also include customer relationships intangibles as well as distribution agreements recognized as a result of business combinations. If these assets have a fi nite useful life, they are amortized on a straight line basis over their estimated life. In all cases, they are subject to impairment tests, at each closing for assets with a fi nite useful life and at least annually for other assets. In the event of a signifi cant decline in value, an impairment is booked corresponding to the difference between the value on the balance sheet and the higher of value in use and fair value less costs to sell.
(cash fl ow hedge); or (iii) hedging of net investments in foreign operations.
AXA Japan Holding Merged with AXA Life Insurance - - 99.02 99.02
Net investment result excluding fi nancing expenses 31,663 2,199 162 255 - 391 (717) 33,953
Net consolidated income – Minority interests 89 40 2 172 1 - - 304
MPF and ORSO mandatory schemes, for 15 years. Under the terms of the agreement, the total cash consideration payable at closing would amount to HKD 2.6 billion (€270 million) (1).
Assets and liabilities at the acquisition date of Colpatria were as follows: (In Euro million)
On October 1, 2013, AXA announced it had successfully completed these transactions for a total cash consideration of
(b) Net of impairment – including premiums/discounts and related accumulated amortization.
Debt instruments designed at fair value through profi t or loss
The amortized cost of non consolidated investment funds available for sale was as below: ■ Funds mainly holding equity securities: €909 million in 2014 compared to €797 million in 2013; ■ Funds mainly holding debt instruments: €1,960 million in 2014 compared to €1,542 million in 2013; ■ Other funds: €3,111 million in 2014 compared to €3,049 million in 2013.
At December 31, 2014 the net transfers between Level 1 and
ICBC-AXA Assurance Co Ltd (previously AXA Minmetals Assurance Co Ltd) 91 - (1) (1) 58 147
(d) This entity closes its full year accounts as of September 30.
Dividends received by AXA from the joint venture - - -
Minority interests’ share in unrealized gains and losses (f) (154) (104)
(d) Net of shadow accounting on unearned revenues and fees reserves and held for sale activities.
UNREALIZED GAINS AND LOSSES (NET OF TAX) – 100% – TOTAL 3,089 885 496
Gross reserves for unpaid claims and claims expenses developed in 2014 (b) 3,314 4,253
The following table shows liabilities and assets arising from policyholders’ participation and other obligations as of December 31, 2014.
The figures shown in the first line of the table below represent estimated undiscounted cash outflows in connection to death, incapacity and disability claims, surrenders, annuities, minimum guaranteed benefits for unit-linked contracts, Property & Casualty and Health claims, net of premiums due from policyholders under contracts in-force.
Provisions for risks and charges included the following items: (In Euro million) December 31, 2014
Debt component of subordinated convertible notes, 3.75% due 2017 (€) 1,622 1,549
Derivatives relating to other fi nancing debt instruments issued (a) (53) (53)
(a) Hedging instruments in accordance with IAS 39 and economic hedge derivatives which are not qualifi ed as hedge under IAS 39.
The income tax charge was split as follows: (In Euro million) December 31, 2014
(a) As described in Note 1.2.1, comparative information related to previous period was retrospectively restated for the amendments to IFRS 10 and 11.
Consolidated Statement of Financial Position and unrecognized commitments received or given disclosed in Note 29.
These instruments are mainly used to: (i) hedge equity risk as part of the Asset Liability Management strategy associated with the guaranteed minimum benefi ts on Variable Annuity products, which totalled €10.8 billion at the end of 2014 (€10.9 billion at the end of 2013) mainly in the United States Life & Savings (notional amount of €9.9 billion in 2014 compared with €10.0 billion in 2013); (ii) hedge the exposure to equity risk within the General
(mainly € and US$) with a total notional amount of €34.4 billion in 2014 versus €31.4 billion in 2013, and (ii) Japan Life &
Fees, commissions and other revenues 1,211 - - 1,147 - -
Investment in real estate properties at amortized cost 668 242 - (7) 903
Loans designated as at fair value through profi t or loss - - 1 - 1
Fair value of separate assets at the beginning of year 1,038 1,041 - - 1,038 1,041
Cumulative impact of asset ceiling (17) (10) - - (17) (10)
Obligation), but represent reimbursement rights accounted for as Separate Assets under IAS 19. Insurance assets or liabilities
26.2.8. Near-term cash fl ows (benefi ts paid and employer contributions)
In the United States, the funding policy of the plans is to make an annual aggregate contribution to satisfy its funding obligations each year in an amount not less than the minimum required by ERISA (Employee Retirement Income Security Act of 1974), and not greater than the maximum it can deduct for Federal income tax purposes. Valuations are performed annually on a
(b) It corresponds to a liability of €10,116 million as of December 31, 2014 ( €8,013 million as of December 31, 2013) included in the statement of fi nancial position under the caption “provision for risks and charges”, and an asset included in the statement of fi nancial position under the caption “other receivables’’.
The total cost is amortized over the vesting period and an estimated pre-vesting lapse rate of 5% is applied. On that basis, the expense recognized in profi t or loss for the year ended December 31, 2014 was €6.1 million (€10.1 million for the year ended December 31, 2013).
Compensation costs/expenses: ■ short-term benefi ts: compensation paid to members of the Management Committee in 2014 totaled €15.5 million
(€312 million); ■ €2,429 million commitments to invested assets other than real estate funds/Private equity funds mainly from Belgium
(€757 million) and Germany Life & Savings (€257 million); ■ €2,420 million guarantees given by the Company as part of
Many of these claims relate to potential future contingencies that have not yet transpired and, consequently, the extent to which they may give rise to future liability (if any) for AXA UK is currently unclear. In connection with this transaction, AXA UK
Report. Some of the litigations described above have been brought on behalf of various alleged classes of claimants, and certain of the claimants in these actions seek signifi cant or unspecifi ed amounts of damages, including punitive damages.
United States) that bear little or no relation to actual economic damages incurred by plaintiffs or the underlying regulatory violations, AXA’s management cannot make an estimate of loss, if any, or predict whether or not these matters will have a material adverse effect on AXA’s consolidated results of operations in any particular period.
In the event of a capital increase by capitalization of existing reserves, profi ts or premiums, shares granted for free to any shareholder holding shares entitled to double voting rights will also carry double voting rights.
shareholders, AXA must obtain the approval of a two-thirds majority of voting rights at an Extraordinary Shareholders’
The Group Governance Standards are part of a larger set of Group standards that apply to all AXA Group companies
These QBR were introduced in 2000 to provide Management with a clear and consistent framework for: (1) reviewing operational performance and monitoring the progress of key projects using quantifi able standards of measurement defi ned in collaboration with the Management Committee; (2) assessing the status of Group transversal projects; and (3) exchanging ideas and information on key Group strategic orientations.
“AXA Group Accounting Manual” and updated regularly by PBRC experts. These guidelines are submitted to
In December 2008, AXA adopted all of the Afep-Medef recommendations, including the recommendations on the compensation of executive offi cers dated October 2008, as
The IFC programme is based on AXA’s IFC Standard, which is an internal control and governance standard.
In order to assess the effectiveness of ICOFR, fi nancial reporting risks are initially identifi ed at AXA Group level with a focus on identifying those risks that may result in a material misstatement of AXA’s consolidated fi nancial statements not being prevented or detected in a timely manner. This top-down and risk-based approach enables to identify in-scope AXA
Registration Document fi led with the AMF on March 21, 2013 under number D.13-0199 contains an observation.
Ordinary shares or securities giving access to the capital, reserved for employees - 135 million (f) 18 months October 30, 2016
Dividends received from insurance companies increased by €359 million to €2,998 million due to the following factors: ■ €1,442 million dividends from the Northern, Central and
Operating expenses rose by €85 million to €452 million in order to support advertising campaigns promoting the AXA
Other financial assets amounted to €872 million, versus €2,201 million in 2013, with €1,329 million decrease mainly attributable to margin calls paid to bank counterparties under collateral agreements linked to the management of derivative instruments, which amounted to €727 million at end-2014, compared with €2,059 million at end-2013.
Tax receivables came to €401 million, including a €330 million carry-back receivable.
AXA BANK EUROPE SA 681 576 100,00% 960 25, Boulevard du Souverain - 1170 BRUXELLES - Belgium 23, avenue matignon - 75008 PARIS
AXA EQUITY AND LAW PLC 1 2,703 99,96% 1,133 5 Old Broad Street - LONDON EC2N 1AD - England 26, rue Drouot - 75009 PARIS
(a) The net decrease of €2,554 million is explained by: ■ €2,430 million capital reduction of Finance Solution, an intra-group treasury fi nancing company, as intra-group loans are now granted directly by AXA SA; ■ a €336 million capital reduction of AXA Life Insurance Co., Ltd (Japan) given its surplus capital, partly offset by: ■ respectively €180 million, €54 million and €51 million increases in capital of AXA Asia, Family Protect and AXA China to foster the development of their businesses; ■ a €135 million capital increase in AXA Bank Europe to strengthen its solvency.
Miscellaneous receivables and currents accounts with subsidiaries 135 135 - 3. 5 Miscellaneous receivables and subsidiaries’ current accounts
The Company’s share capital is represented by 2,442,276,677 shares with a par value of €2.29, giving a total value of €5,592,813,590.33 at December 31, 2014. These shares were all entirely subscribed and paid with rights from 3.9 Movement in shareholders’equity
(a) Net dividend distribution of €1,960 million took into account shares issued after March 17, 2014 «AXA Miles 2012» capital increase with dividends rights starting January 1, 2013. Proposed dividend at year end 2014 is submited to Shareholders’ Meeting of April 30, 2015.
Other shareholders’ equity amounted to €6,441 million, compared to €6,165 million at the end of 2013.
(b) The corporate income tax benefi t amounted to €646 million, compared with a tax benefi t of €558 million in 2013. It mainly included €762 million of tax receivables from members of the tax consolidation group in France, offset partially by the €59 million payment related to the French tax of 3% on dividends paid to shareholders and €47 million allowances to provision for the risk of tax repayments.
Additional information about the AXA Group’s corporate responsibility-related policies and practices is available in the
AXA established Group-wide mobility policies and processes and enabled Group-wide posting of internally and externally available jobs. This makes business needs immediately visible and facilitates transfers to align resources with AXA’s business priorities.
Benefi ts form a signifi cant part of AXA’s broader total rewards offer. AXA’s policy is to target benefi ts coverage at a minimum level of the median of the relevant market. Benefi ts should include pension, healthcare and protection covers (the nature and type of which may vary by entity depending on local competitive and cost considerations). In all cases, local minimum requirements must be respected. Benefi ts should not discriminate.
It aims to provide AXA employees with fully agile learning experiences (serious games, reverse mentoring and distance learning). Furthermore, two programs were designed and delivered: “AXA Digital Leaders” and “AXA Digital Acceleration”.
System (GLMS) to further take advantage of digital technology based learning features and to better measure the impact of training programs on its employee’s performance and development. During 2014, more than 50,000 employees were already accessing around 2,600 digital learning programs.
Percentage of salaried workforce having received at least one training course
Average number of working hours per week 36.6 hrs +1.1% 36.2 hrs
between 2013 and 2014. A signifi cant number of entities have implemented a printing policy to help decrease offi ce paper consumption which includes reducing the number of printers, and installing an employee badging system to collect all printed documents. In 2014, AXA’s marketing and distribution paper consumption per customer increased by 12% compared to 2013 mainly explained by regulatory changes (requiring increased use of paper), business growth and a more accurate measurement process in some entities. AXA is also working on increasing the volume of paper originating from recycled sources or sustainably managed forests. In 2014, AXA used 61% of offi ce paper and 60% of marketing and distribution paper from recycled sources. To promote this type of paper, since 2011 the Group requires environmentally-friendly offi ce paper as a minimum standard for the main group entities.
Regarding measures taken to ensure compliance with legal requirements, the main concern arises from the existence of
However, as a provider of insurance, savings and investment services, AXA promotes economic growth and social development through the support of 103 million clients, local communities and businesses. Indeed AXA’s business is to protect people and businesses, their belongings, their health, their savings, their assets over the long run, providing peace of mind through uncertainty and support when it is most needed.
“Impact Investment” project, which allocates capital to investment strategies whose goal is to focus on assets that address key sustainability concerns such as renewable energy, poverty, health or risk prevention.
■ Raw materials consumption and measures taken to improve the effi ciency of their use, including indicators offi ce paper, marketing and distribution consumption and percentage of paper recycled and/or guaranteeing sustainable management.
established Pursuant to Articles L.225-100 and L.225-100-2 of the French Commercial Code.