■ 50 million individuals and businesses have placed their trust in us: •To insure their property (vehicles, housing, equipment),
A decade of complacent or euphoric markets led to a situation where earnings were far too dependent on capital gains. When these gains dried up, we had to take a good – and healthy – look inward, and work on ourselves.
Although the environment is showing some signs of improvement, the recovery remains hesitant. We aren’t worried, though, precisely because our core business is about dealing with risks.
Chairman and CEO of Vivendi Universal; Chairman of the Supervisory Board of Groupe Canal+, Director of Aventis, AXA Financial (United States) and Cap Gemini.
– is informed by the Management Board of compensation levels set by the Board of Directors of Group subsidiaries.
Claus-Michael Dill Chairman of the Management Board of AXA Konzern (Germany).
His variable remuneration is calculated on the basis of a predifined target amount (€2,000,000) and includes three components : – The Group results assessed through the earnings per share and the underlying earnings.
In light of the importance of their role, the proportion of directors’ fees paid to the members of the Audit Committee is increased.
51,977,531 AXA subscription options and 40,949,179 ADR purchase options, representing in total 5.2% of the share capital, are outstanding as of February 29, 2004.
The PBRC department has the following responsibilities: – upstream of the consolidation and control process, it has responsibility for the information transmission system –
– all information additional to the notes and published in the Group’s half-year or annual report,
In addition, DCFG continuously maintains a three-year forecast of the Group’s consolidated solvency margin, using extreme scenarios concerning equity market and interest rate movements.
In managing interest rate and exchange rate risk, DCFG (the central group finance department) is authorised to use derivative instruments, mainly interest rate and currency swaps, currency futures, options, caps and floors. These instruments, which may be either standard or structured, are used as part of strategies described and authorised by the Supervisory Board’s Finance Committee. Persons authorised to commit the company and carry out such transactions are listed on an approval form.
– The Risk Management teams’ priorities as regards controlling risks are as follows: – the monitoring and control of asset/liability management policy within operating entities is carried out through an annual detailed analysis of asset/liability matching. These analyses cover hedging strategies involving derivatives, and are updated every quarter. They are mainly intended for use by the ‘Group A&L Committee’, which is composed of the Group’s CFOs, in order to enable this committee to take required measures on a regular basis.
Management team and aggregated at the Group level. The central Risk Management team recently started to monitor the corresponding exposures on a monthly basis. This analysis involves aggregating data from several accounting and non-accounting information sources. It must be followed by a periodical review by the various risk committees and by effective communication with asset managers, to ensure that decisions are implemented,
Risk Management team and allows asset, liability and operational risks to be modelled together.
– IT risk is dealt with through an organisation comprising three types of entity: – The Group IT Department, which sets Group IT policy with particular attention to security issues.
In the last few years, the Group internal audit team has set up a risk-based planning system for local internal audit teams, based on the RAM (risk assessment model) system. The aim is to identify each company’s risk exposure, and to evaluate the internal audit systems that have been adopted to prevent and/or limit the impact of risks.
The internal audit procedures described in this report have changed over time, as a result of efforts designed to ensure their consistency, alter their scope and streamline them. These procedures take account of the multiple information systems that remain in place throughout the Group as a result of past mergers and acquisitions. These procedures form part of a dynamic set of improvements that are intended to increase the Group’s control and assure a reasonable level of control for our shareholders.
2017) has been adjusted, following the issue of the ORANs on the settlement date, 21 October 2003. The conversion ratio has been increased from 4.04 to 4.06 AXA shares (€2.29 par) for 1 convertible AXA 2.5% 2014 subordinated convertible note and from 4.04 to 4.06 AXA shares (€2.29 par) for 1 convertible AXA 3.75% 2017.
Life insurance consolidation reappeared as operating trends improved, rating agency pressures lifted and capital pressures lessened. The increasing need for scale and efficiency, along with reasonable prices, led to renewed consolidation during the year. In September, AXA announced the proposed acquisition of MONY for $1.5 billion leading the consolidation theme.
Additionally, the announced acquisition of MONY was perceived very positively by the market as it fit with the strategy of the Group and comforted the market regarding the health of AXA’s balance sheet.
AXA’s full year 2003 earnings were announced on February 26, 2004. Net income of €1,005 million was ahead of analysts’ expectations, and up 6% since 2002. Underlying earnings were up 21% to €2 billion, or up 30% at constant exchange rates. Results were better than expected, driven by a much improved Property & Casualty combined ratio of 101.4% in 2003 and a successful turnaround in International Insurance, with underlying earnings up €219 million to €141 million in 2003.
– Invitations to informational meetings held annually in a number of French cities.
Both earnings presentations and shareholders’ meetings are live webcasted on www.axa.com. Teleconference access is also provided.
10% decrease in lapse rates 0.42 0.05 10% permanent decrease in expenses 0.43 0.04 10 bp increase in general account spread 0.19 0.02 100 bp increase in asset return for unit-linked business 0.26 0.03
If company management is reluctant to take the necessary measures, AXA often denies coverage.
For the time being, we have not decided whether to exclude single-hull vessels from coverage, because shipper’s fleets are generally made up of both single- and double-hull boats. Additionally, double-hull ships have fewer sea miles behind them and may present as-yet unidentified risks that will become apparent as they log in more sailing hours: inter-hull maintenance problems, the risk of explosion caused by fuel build-up between the hulls, etc.”
AXA is a formal adherent to: Universal Declaration of Human Rights - UN
Accumulator 2 is one of AXA Financial’s most successful products. In 2003, it accounted for more than 53 percent of all new business of AXA Financial, generating some 8 billion dollars in revenues.
Fight against fraud and money laundering: we undertake to fight against fraud and money-laundering by informing our customers of their legal and tax obligations and by reserving the right to verify: – The veracity of the information and disclosures submitted to us; – The origin of funds entrusted to us.
“I’ve been working with the company’s annuity product development group for a couple of years, most recently in the development of Accumulator Series ’04. The company is smart to get the perspective of sales managers and associates. We interact day-to-day with investors and clients, and hear their goals and concerns about financial security. In the process, the product design people balanced features the field was looking for with the company’s need to create a profitable product that would meet regulatory constraints. They were very receptive to field input – an effective way for the company to go to market with timely, competitive products.”
■ The UK publication Your Money named AXA PPP healthcare the best private medical insurance provider for the third time.
Living up to these Commitments A Group Procurement Department was set up in 2002 to streamline and harmonize the purchasing process for all
Employee volunteers at local chapters decide where and how to show their solidarity. In France and Belgium, employees participate in projects that focus on supporting the disabled and substance abusers, halting the spread of HIV-AIDS, and helping members of the underclass integrate the workplace and social life. In Hong Kong, employees have opted to work on projects relating to the elderly and nursing homes.
AXA has included prevention – particularly of theft – in its home insurance products since 2002. The company also ties pricing to client prevention practices, and provides its brokers with training in prevention techniques so that they can relay information and tips to clients.
AXA PPP healthcare is giving its employees the opportunity to recycle their waste paper rather than throwing it out. The company recently installed a number of blue bins and disposed of many of the old receptacles. To encourage employees to make regular use of the blue bins, the number of ordinary bins per person has been reduced. An information campaign has also been developed to raise employee awareness of the importance of sorting waste products properly: if paper that is not “clean” is thrown into a blue bin, the entire collection is ineligible for recycling.
PRODUCTS AXA’s Life & Savings products include a broad range of life, health, retirement and savings-related products marketed to both individuals and corporate clients, the latter in the form of group contracts. The life and savings-related products offered by AXA’s operations include, term life, whole life, universal life, mortgage endowment, deferred annuities, immediate annuities, variable life and other investment-based products. In 2003, AXA launched in Germany its new pension fund of
Property & Casualty Segment Gross premiums and financial services revenues Gross insurance
(commercial lines) and a significant increase in the cost of reinsurance.
In 2000, Alliance Capital acquired the business of Sanford C. Bernstein Inc., which complemented Alliance Capital’s growth equity investment orientation, with a highly regarded value equity investment capability, institutional research capabilities and a strong private client business portfolio. In connection with this acquisition, AXA Financial agreed to provide liquidity to the former shareholders of Sanford C. Bernstein who received private Alliance Capital units over an eight-year period following a two-year lockout period. After the completion of this lockout period in October 2002, AXA Financial acquired in November 2002 8.16 million of the former Bernstein shareholders’ units. The outstanding 32.6 million Alliance Units may be sold to AXA Financial at the prevailing market price over the remaining 7 years of the original eight-year period, ending in 2009. Generally, not more than 20% of the original Units issued to the former Bernstein shareholders may be put to AXA Financial in any one annual period.
(“NYAG”) and the United States Securities and Exchange Commission (“SEC”) were investigating practices in the mutual fund industry identified as “market timing” and “late trading” of mutual fund shares. In connection with this investigation, Alliance Capital announced on September 30, 2003 that it had been contacted by these regulators, and provided full cooperation. This led to an agreement on December 18, 2003 with the two regulators, including compensation to fund shareholders for the adverse effects of market timing, and the implementation of strengthened governance. Alliance Capital took into its Full-Year 2003 accounts a €292 million ($ 330 million) charge, with an impact on AXA Group earnings of €–104 million net group share. In addition, as part of the settlement, Alliance Capital agreed to lower its fees on domestic equity mutual funds by 20% for the next five years, with an estimated impact on revenues of $70 million for 2004.
AXA BANK BELGIUM AXA Bank Belgium is a subsidiary of AXA Belgium that offers a comprehensive range of financial services to individuals and small businesses. It has a network of a thousand of independent bank agents that support the sale of products offered by AXA Belgium and AXA IM.
Life & Savings, the Property & Casualty and the International Insurance) consist of a diversified portfolio of investments. These assets are managed principally by AXA’s Asset Management entities: Alliance Capital and AXA
Insurance Segment, and (ii) AXA RE business from the International Insurance Segment.
Premium adjustment (c) 259 254 507 540 600 658 943 1,168 1,232 1,079 Re-estimated net claims reserves: 1,023 1,206 1,804 1,812 1,930 2,477 2,547 2,393 3,289 2,714
AXA Life Insurance Co. Ltd. and AXA Group Life Insurance Co. Ltd.
Based on the information currently available, AXA does not believe that such restrictions constitute a material limitation on its ability to meet its obligations or pay dividends.
On a consolidated basis, AXA’s total outstanding issued non-subordinated debt amounted to €5,156 million at
For further information refer to Note 23 to the consolidated financial statements.
AXA’s exposure to market risk is reduced by reason of the diversity of its operations, and its geographic diversification which reduces the impact of local economic, financial and insurance cycles on its global financial condition.
– the value generated by insurance products, which is measured by factoring in the level of risk affecting assets and liabilities.
– liquidity risk, resulting from a mismatch between the maturity date of an asset and a liability,
Furthermore, AXA summarizes and analyzes its exposure to all reinsurers (including captive reinsurers) by factoring in all positions with reinsurers (claims, premiums, reserves, deposits, pledges and security deposits).
EXCHANGE RATES In 2003, the Euro emphasized its appreciation against other currencies, especially against the US Dollar (+ 20%), the Yen (+ 8.5%) and the Sterling (+ 8.2%).
Funds Services. The proceeds from the sale were €53 million, with a net realized capital gain on the sale of €12 million (group share).
Crédit Lyonnais shares, and received in exchange cash and shares of Crédit Agricole S.A. The capital gain realized on the disposal of the Crédit Lyonnais shares amounted to €542 million, or €442 million net of tax group share. The
(“NYAG”) and the United States Securities and Exchange Commission (“SEC”) were investigating practices in the mutual fund industry identified as “market timing” and “late trading” of mutual fund shares. In connection with this investigation, Alliance Capital announced on September 30, 2003 that it has been contacted by these regulators, and provided full cooperation. This led to an agreement on December 18, 2003 with the two regulators, including compensation to fund shareholders for the adverse affects of market timing, and the implementation of strengthened governance. Alliance
(a premium income reduction of 3% compared to Japan fiscal year 2002) influenced by a lack of customer confidence due to solvency concerns and the low interest rate environment. In the midst of these difficulties, the share of foreign
The share of non-proportional business is growing again. Competition amongst reinsurers is coming from the growing size of Bermudian companies. As in 2002, reinsurance has not been hit by exceptional claims in 2003.
On the large risks insurance market, in the context of a favourable claims experience, further rate increases and restructuring of large Corporate Insurance programs (through franchise agreements and other contract clauses) were conducted, especially in liability, and on a lesser extend in property, motor and marine. Only the aviation market softened, in the context of a reduced airlines activity.
(1) Annual Premium Equivalent is New Regular Premiums plus one tenth of Single premiums.
(in euro millions except ordinary shares in millions) Basic Fully diluted Basic Fully diluted Basic Fully diluted
Investment & Savings: Individual premiums (59% of gross written premiums) increased by 4%. Excluding fronting business, notably a significant contract underwritten in June 2002, direct business in individual savings recorded a 5% growth, to be compared with the 3% growth of the traditional players. General account premiums increased by 13% and represented 86% of premiums as compared to 79% in 2002 as AXA France successfully marketed this type of products perceived as safer by customers. Group pensions premiums (8% of gross written premiums) were up 16% due to new business with major companies, with unit-linked premiums accounting for 37% of premiums compared to 34% last year.
Fees and revenues rose by €35 million in 2003. Excluding the impact of a contractual change on a significant book of mortgage insurance contracts (having a €32 million opposite impact on fees and revenues margin and the expenses margin), fees and revenues would have been stable (€+3 million). Fees and revenues increased in all lines of business except for individual separate account products, which decreased as a consequence of lower average separate account policyholders’ reserves.
Underlying earnings decreased by €105 million compared to 2002, or an increase of €9 million on a constant exchange rate basis, as the increase in net technical margin and fees and revenues was substantially offset by the increase in tax.
– Investment & Savings (88% of gross written premiums): Premium revenues are 13% and new business APE 14%
– Offset by the non-repeated income of €23 million, which arose in 2002 from the finalization of the calculations of the transfer of “Inherited Estate” assets.
(b) FY 2002 and FY 2001 margin analysis as published are presented excluding Health business.
Net technical margin amounted to €134 million, an increase by €177 million (or €193 million on constant exchange rate). In 2003, the surrender margin benefited from higher surrenders as well as conversions of individual life and annuity products, for a total of €+126 million. In 2002, AXA Japan had registered €83 million losses resulting from anticipated conversions of customers from its Medical Term product in 2003 as significant competition in this sector had resulted in the company offering new products with reduced premiums to certain customers.
– Fees and revenues increased by €10 million to €430 million following an increase of €26 million relating to the inclusion of twelve months of ipac operations.
In Health business, adjusted earnings improved by €18 million resulting in a profit of €15 million, mainly due to positive run-off results.
As a result of the items described above, underlying earnings for Life and Health improved by €+ 34 million to €35 million.
Portugal Gross written premiums grew by 12.7% to €146 million as compared to 2002 driven by the Investment & Savings products increase following re-investment campaigns and the launch of new competitive financial products.
Net investment result decreased by €338 million to €–93 million due to (i) the decrease of net capital gains and losses down by €219 million to €–275 million mainly as a result of higher asset impairments as well as lower capital gains from equities and equity funds and (ii) the decline of the net investment income by €119 million to €182 million as a result of lower yield on bonds portfolio and lower dividend income.
Adjusted earnings decreased by €–155 million as a result of a deterioration in net capital gains and losses.
The income tax benefit decreased by €67 million, or €65 million on a comparable basis mainly reflecting the strong increase in the operating income.
(a) Before intercompany transactions. (b) (i) Run off entities transferred from AXA Corporate Solutions Assurance to other transnational activities.
(– 38%) as well as reduced exposure to selected business lines and the reshuffling of the UK portfolio especially in
Operating income corresponds to the income derived from operations, before tax, minority interest, and goodwill amortization.
ASSET MANAGEMENT Net New Money: Inflows of client money less outflows of client money. Net New Money measures the impact of sales efforts, product attractiveness (mainly dependent on performance and innovation), and the general market trend in investment allocation.
REPORT OF INDEPENDENT AUDITORS ON THE CONSOLIDATED FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300
In 2002: – The capital gain realised on the sale of AXA Australia Health activities (National Mutual Health Insurance; €87 million). –An exceptional profit of € 148 million at Alliance Capital due to the partial release (€ 277 million) of the provision booked in 2000 to offset the dilution gain recorded when acquiring Sanford C. Bernstein Inc. This release was due to the buy-back of 8.16 million private units in Alliance Capital from the former shareholders of Sanford Bernstein, after these shareholders exercised their liquidity put options. This operation generated € 122 million of additional goodwill, which was amortized in full during the year (€ 129 million).
Casualty”, “International Insurance” (including reinsurance) and “Other Financial Services”. An additional “Holdings”
Issue of subordinated fixed-rate notes with early redemption option On May 7, 2003, as part of its €5 billion Euro Medium Term Note (or EMTN) program, AXA issued $500 million of perpetual subordinated fixed-rate notes with an early redemption option. The notes were issued at par, and bear interest at 7.10% per year, payable quarterly. The Company has the option, under certain circumstances, to redeem these notes at par on November 7, 2008 at the earliest, or before this date for fiscal reasons or in the event of a change in prudential treatment.
There were no changes in accounting principles adopted in 2002. In 2001, there were changes in accounting principles due to (i) the implementation of regulation 2000-05 for preparing and presenting consolidated financial statements of French insurance companies, and (ii) in respect of the accounting for UK “With-Profit” contracts.
If goodwill is negative, the following adjustments are made: – Acquisition of a company that was not previously consolidated: the estimated fair value is decreased to the extent necessary to eliminate such excess,
(or 30%) criterion was not reached for all but a few days during the six month-period prior to year-end, (ii) their market value has significantly fallen in the last month of the year, (iii) a valuation allowance was already recorded on these securities in prior years, (iv) there are significant factors other than the fall in the share price that raise questions about the fundamentals of the issuer or (v) the securities are intended to be sold in the near future.
– If equity securities are to be sold in the near future or form part of a portfolio with rapid turnover, the recoverable value is the year-end market value.
Investments for certain activities are stated at fair value with the change in fair value included in income under “net investment result”. The activities in which investments can be valued at fair value are set out below: – Invested assets in respect of separate account (unit-linked) contracts and invested assets supporting the UK
Obligation), is calculated on the basis of long-term projections (salary increase rate, inflation rate, mortality, turnover, pension indexation and remaining service lifetime).
OPTIONS TO PURCHASE AXA SHARES (FROM THE MARKET) When employee share options to purchase shares are issued by AXA a provision is recorded (corresponding to the difference between the market value of the shares to be acquired in the market and the exercise price over the acquisition period). This provision is adjusted on an annual basis to reflect the change in market value of the underlying shares up until the date the shares are to be acquired.
At December 31, 2003, the gross goodwill asset was €289 million, accumulated amortization was €144 million (of which €80 million booked in 2003) and, therefore, goodwill net of accumulated amortization totaled €145 million.
– Equity holdings in fixed maturity-based mutual funds – 19,883 20,165 – 21 21 – 19,903 20,186
Mortgages, policy and other loans 18,362 18,265 19,004 226 170 179 18,588 18,434 19,183
(a) The stake in ‘Millennium Entertainment Partners’ is now included in the ‘Investment holdings under €50 million each’ caption. The net book value of this stake at December 31, 2003 was €44 million.
8.4. FIXED MATURITY AND EQUITY SECURITIES Securities (excluding assets in representation of unit-linked accounts) are detailed below. The amortized or historical cost represents the acquisition cost of the securities, net of discount or premium in respect of fixed maturity securities acquired.
(b) Allocated to UK with-profits business trading – – – – 15,362
Fixed maturities and other fixed income securities 153 419 (706) 743 608
AXA Seguros affiliates – Hilo Direct de seguros y reaseguros – 39 – 39 4
AXA France Assurances affiliates – Argovie – 26 – 26 2 AXA Insurance Hong Kong – 69 – 69 6 AXA Insurance Singapore – 49 – 49 3 AXA Oyak Sigorta – 59 – 59 0 Other affiliates (b) 51 97 4 153 21
Asia Pacific Holdings subsidiary Members Equity (€–19 million) and the sale of Austria and Hungary operational activities(€–60 million).
AXA Financial Surplus Notes, 6.95% due 2005 316 381 Surplus Notes, 7.70% due 2015 159 191
Which includes: – Policyholders’ participation (bonuses), excluding UK “With-Profit” business 8,894 9,737
(a) Deferred tax positions on the balance sheet are analysed in Note 21.
Medicare Act”) was signed into law in the United States of America. With respect to the U.S. in respect of postretirement benefits plans, it introduces a prescription drug benefit under Medicare Part D as well as a Federal subsidy to employers whose plans provide an “actuarially equivalent” prescription drug benefit. Detailed regulations necessary to implement and administer the 2003 Medicare Act have not yet been issued. Similarly, certain accounting issues raised by the 2003 Medicare Act are pending further discussion and resolution, thereby further reducing the likelihood at this time of producing a sufficiently reliable measure of the effects of the 2003 Medicare Act. Consequently, and following the guidance of the U.S. Financial Accounting Standards Board staff, measures of the accumulated postretirement benefits obligation and the net periodic postretirement benefits costs above do not reflect the effects of the 2003 Medicare Act on the plan. This election to defer accounting for the effects of the 2003 Medicare Act generally will continue to apply until authoritative guidance on the accounting for the Federal subsidy is issued.
Net Deferred Tax (assets) 2.053 4,763 (a) As of 2003, deferred tax positions on the balance sheet are stated net at the level of the heads of local tax consolidation groups and distinct tax entities.
24.3. CONSOLIDATED STATEMENTS OF INCOME BY ACTIVITY The tables below set out AXA’s consolidated statements of income by activity: Year ended December 31, 2003 Other Inter-
Net investment result included in technical result (a) 270 – 270 340 378
At December 31, 2003 and December 31, 2002, the overall impact on AXA’s consolidated financial condition and operating result from these instruments was not material.
DERIVATIVE INSTRUMENTS ACCOUNTED FOR AS HEDGING DERIVATIVES AXA primarily uses derivative instruments for hedging purposes to manage risk, principally interest rate risk and foreign currency exposures. The risk management and associated hedging strategies are determined and managed by AXA’s local operations in light of both local GAAP and French GAAP requirements. Such hedging strategies include (i) managing interest rate exposures on fixed maturity investments, long term debt and guaranteed interest crediting rates on insurance contracts, (ii) managing foreign currency exposures on foreign currency denominated investments and liabilities, and (iii) managing liquidity positions (including the ability to pay benefits and claims when due) in connection with asset-liability management and local regulatory requirements for AXA’s insurance and banking operations.
(€–104 million) as part of its normal banking operations via AXA Banque (France), AXA Crédit (France) and AXA
The Group also maintained its policy of hedging certain investments, along with exchange rate and interest risk, using derivatives1.
AXA also has significant interests in CDOs. At December 31, 2003, AXA’s investment, being the carrying value included in its consolidated financial statements, totaled approximately €200 million with no additional funding commitments.
(d) Represents cash and cash equivalents net of bank overdrafts. Cash and cash equivalents are presented in the balance sheet gross of bank overdrafts, which are presented separately in liabilities under the balance sheet caption “Amounts owed to credit institutions”. Gross cash and cash equivalents at December 31, 2003, 2002 and 2001 totaled €19,428 million, €17,592 million and €17,646 million, respectively.
FAS 133 hedge accounting has very prescriptive rules for (i) the types of risks that can be hedged (for example, hedge of net exposures are not permitted), and (ii) the extent to which hedge relationships must be documented and tested for effectiveness, which affect the accounting for hedges under U.S. GAAP. The strict guidance set out by the FASB
Interpretation of ARB No. 51 (“FIN 46”). FIN 46 clarifies the application of Accounting Research Bulletin No. 51
Pension Plans Under French GAAP, AXA uses an actuarial methodology that is consistent to the measurement and recognition basis prescribed under U.S. GAAP, with the exception of the recognition of an additional minimum pension liability that is not recognized under French GAAP. For U.S. GAAP purposes, AXA has adopted FAS 87, “Employer’s accounting for pensions”, as of January 1, 1989. At the date of adoption a transition asset, reflecting the over-funded status of
Long-Term Debt with Early Redemption Rights Under French GAAP when long-term debt is issued with early redemption rights whereby the redemption price is in excess of the original issue price per bond or note, the excess premium may not be amortized over the period from original issue date to earliest redemption period subject to certain market conditions.
Consolidated Net Income in Accordance with U.S. GAAP (in euro millions) Year ended December 31, 2002
These factors were partially offset by the non-recognition under U.S. GAAP of the profit recorded by AXA Financial under French GAAP (€–89 million), relating to a review of deferred tax positions.
Net income Group share for 2002 under U.S. GAAP amounted to a loss of €–2,588 million, which was €3,537 million lower than the French GAAP net income figure.
Net income Group share in the International Insurance segment was €279 million lower under U.S. GAAP than under
SOCIETE DE GESTION CIVILE IMMOBILIERE “SGCI” 43 15 100.00% 87 Cœur Défense - Tour B - La Défense 4 - 100, esplanade du Général-de-Gaulle, 92932 Paris-La Défense
AXA AURORA 260 12 100.00% 565 Plaza de Federico Moyua n° 4, 48009 Bilbao
Vincensini, 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 2003.
Equity issue reserved for employees of AXA 980,053 85,313,613 353,868,244 3,237,894,432 Exercise of stock options 2,467,439 61,683,108 356,335,683 3,260,471,499 Conversion of bonds into shares 45 7,013 356,335,728 3,260,471,911
Option exercisable as of 09/10/99 09/30/99 04/20/00 06/09/01 Expiration date 09/09/07 09/29/07 04/19/08 06/08/09
– 66.66% of the total grant is exercisable at the end of the third year following the date of the grant,
Date of Board meeting 04/13/94 07/10/96 05/07/98 05/26/99 Date of Shareholders’ meeting 04/27/90 06/15/95 05/28/97 05/28/97
Securities of the issue in euros increase in euros Term Expiration
Unattached stock subscription warrants – 1 billion 26 months June 30, 2005
No loan or guarantee has been granted or issued by the Company to any member of its governing structures.
In accordance with Article L.225-88 of the Commercial Code, we were informed of the agreements that were subject to the prior approval of your Supervisory Board.
Composition and organization of committies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16