-- Positive Underlying Earnings growth PARIS, Aug. 7
/PRNewswire-FirstCall/ -- Chairman's statement "First half 2008
performance proved robust in a turbulent market environment. AXA's
business strategy is built to withstand severe economic conditions,
and we remain well positioned to benefit from any upturn in the
market environment," said Henri de Castries, Chairman of the AXA
Management Board. "Total revenues were stable despite a momentum
slowdown in Life & Savings and Asset Management. However, all
business lines generated positive net inflows with notably
increased retention in Life & Savings." "Underlying Earnings
grew from the record level achieved in 2007, in line with our
February 28, 2008 outlook, driven by the strong operating
performance of our Property & Casualty operations while other
businesses proved resilient. Adjusted Earnings were stable, as the
hedging of our equity portfolio partially compensated for the
impairments resulting from the drop in equity markets. Net Income
decreased mainly due to mark-to-market accounting for certain fixed
income assets in the context of credit spreads widening and rise in
interest rates." "Our Solvency remains strong, based on Solvency I
and future Solvency II framework, and it is our current intention
to propose a stable dividend for 2008(5) at euro 1.20 per share."
Non-GAAP measures such as Underlying Earnings and Adjusted Earnings
are reconciled to Net Income on page 7 of this release. All half
year 2008 information coming from AXA's consolidated financial
statements has been subject to a limited review by AXA's
independent auditors. All comments are on a comparable basis
(constant Forex, scope and methodology for activity indicators and
constant Forex for earnings) Activity and profitability indicators
Stable total revenues Positive net inflows High profitability
indicators -- Life & Savings New Business Volume (APE(i)) was
down 6% to Euro 3,611 million in line with 1Q08 performance.
Unit-linked share was down from 52% to 48%, while variable annuity
sales were up 6% benefiting from the global roll-out of
Accumulator-type products. New Business Value (NBV) was down 6% to
Euro 785 million. NBV margin stood at 21.7%, up 0.1 point on a
comparable basis, with a positive impact from business mix (up 0.3
point) and a negative impact from country mix (down 0.2 point). Net
inflows, mostly on unit-linked products, amounted to Euro +6.2
billion, notably as a result of increased retention. -- Property
& Casualty revenues increased by 2.3% to Euro 14,519 million
fuelled by both personal and commercial lines. The combined ratio
was 96.4%, improving by 1.9 points, mainly due to the
non-recurrence of 1H07 natural catastrophes. -- Asset Management
revenues decreased by 3% to Euro 2,102 million in a challenging
environment. Net inflows amounted to Euro +2.2 billion. Underlying
cost income ratio improved by 0.8 point to 66.8% compared to 1H07.
Earnings Positive Underlying Earnings growth -- Underlying Earnings
were up 7% to Euro 2,766 million mainly reflecting the uplift in
Property & Casualty (+20%) benefiting from the non-recurrence
of 1H07 natural catastrophe events, and the strong resilience of
Life & Savings (-1%) and Asset Management (+9%) businesses.
Underlying Earnings per share(ii) increased by 5% to Euro 1.28 per
share. Stable Adjusted Earnings benefiting from equity hedges --
Adjusted Earnings reached Euro 3,290 million, down 1% as a result
of (i) higher underlying earnings, (ii) Euro 834 million net
capital gains, (iii) Euro -786 million impairments, partially
offset by (iv) Euro 477 million positive impact from equity
hedges(iii). Net Income impacted by mark-to-market accounting --
Net Income was down 29% to Euro 2,162 million mainly as a result of
the negative impact of mark-to-market accounting for certain
financial assets, notably fixed income assets. Balance sheet --
Shareholders' equity was Euro 40.5 billion, down Euro 5.1 billion
notably due to a Euro 4.3 billion lower level of net unrealized
capital gains on equities (Euro -2.4 billion) and fixed income
(Euro -1.9 billion). -- Solvency remains strong based on Solvency I
(148% vs. 154% at end of 2007) and future Solvency II framework
QIS4(iv) (ca. 175% vs. 170% at end of 2007, notably as a
consequence of the increased hedging of our equity portfolio). AA
S&P rating was confirmed on June 27, 2008. Outlook Objective to
propose a stable dividend for 2008 Provided that market conditions
do not deteriorate materially, AXA's FY08 underlying earnings
should be in line with 2007 record performance. It is management's
current intention to propose a stable dividend for 2008(v) at 1.20
euro per share. Activity indicators: Key figures Change Euro
million, except ------------------------ when otherwise noted
Change on a Scope reported Comp.(a) & FX 1H07 1H08 basis basis
Other impact(b) Life & Savings (Group share) APE 3,877 3,611
-6.8% -6.0% +5.0pts -5.8pts NBV (c) 848 785 -7.4% -5.5% +2.9pts
-4.8 pts NBV to APE margin Net inflows 21.9% 21.7% -0.1pt +0.1pt
(Euro billion) 7.2 6.2 Property & Casualty 14,195 14,519 +2.3%
+2.3% +2.8pts -2.7pts revenues International Insurance 2,489 1,673
-32.8% +5.2% -35.5pts -2.5pts revenues Asset Management Revenues
2,407 2,102 -12.6% -2.7% +0.1pt -10.0pts Net inflows (Euro billion)
32.6 2.2 Total revenues 50,801 49,319 -2.9% -0.4% +1.7pts -4.2pts
(a) Change on a comparable basis was calculated at constant FX and
scope. (b) Mainly due to continued appreciation of the Euro against
USD, JPY, GBP and CHF. (c) New Business Value is Group share. NBVs
for both 1H07 and 1H08 were computed using profitability factors by
product from year-end 2007 unless hedged at current conditions in
1H08. Economic and actuarial assumptions remained unchanged. Life
& Savings 1H08 APE growth in line with 1Q08 trend -- New
Business Volume (APE) was down 6% to Euro 3,611 million: -- (i)
Positive development in Individual business in France (up 10%),
(ii) strong performance of Group business in Switzerland (up 17%)
and continued growth in CEE (up 57%) and (iii) favorable impact
from Variable Annuities (up 6%), benefiting from the roll-out in
Germany and the Mediterranean Region (AXA MPS Italian JV) more than
offsetting lower variable annuity sales in the United States. -- As
expected (i) slowdown in the UK (-3%) and in Japan (-15%) due to
the negative impact of certain regulatory changes as well as (ii)
non- recurrence of 2Q07 positive impact from the Australian
superannuation business and (iii) lower Universal life sales in the
United States as a result of increase in product pricing in 2007.
Annual Premium Equivalent by country Change on a Change on a Euro
million reported comparable 1H07 1H08 basis basis United States
1,107 808 -27.1% -14.0% France (a) 642 690 +7.5% -2.9% United
Kingdom 819 692 -15.5% -2.9% NORCEE (a) (b) 582 660 +13.4% +7.8%
Asia Pacific (c) 642 558 -13.2% -14.1% Mediterranean Region 84 204
+142.8% -1.5% Total Life & Savings APE 3,877 3,611 -6.8% -6.0%
(a) Change on a comparable basis included respectively Euro 69
million and Euro 14 million in 1H07 of actual voluntary additional
premiums for AXA France and AXA Switzerland. (b) Northern Central
and Eastern Europe: Germany, Belgium, Switzerland and Central and
Eastern Europe as Luxemburg's APE and NBV are not yet modelled. (c)
Including Japan, Australia/New-Zealand, Hong-Kong, South East Asia
& China. South East Asia & China's APE was not yet modelled
in 1H07 (change on a comparable basis includes 1H07 APE and NBV).
Stable NBV margin -- New business margin was up 0.1 point to 21.7%,
on a comparable basis, with a positive impact from business mix (up
0.3 point) and a negative impact from country mix (down 0.2 point).
Country mix deteriorated as a result of lower relative
contributions from high margin countries, notably Japan and
Belgium. The continued improvement in business mix was largely due
to (i) Japan, as a result of the continued focus on higher margin
products and (ii) the NORCEE (vi) and the Mediterranean Region due
to the positive impact on margins from the roll-out of variable
annuity products, partially offset by (iii) France as a result of
lower unit-linked share. Positive net inflows -- Net inflows
amounted to Euro +6.2 billion. Excluding UK With-Profit funds (not
actively promoted since 2002), net inflows were Euro +7.4 billion
with strong positive contributions from all regions and increased
retention, notably in the United States. Property & Casualty
Property & Casualty revenues increased by 2.3% to Euro 14,519
million on a comparable basis: Property & Casualty: IFRS
revenues by country Change on a Change on a reported comparable In
Euro million 1H07 1H08 basis basis NORCEE(6) 5,202 5,224 +0.4%
-0.1% of which Belgium 1,155 1,155 -0.0% +0.5% of which Switzerland
1,794 1,805 +0.6% -0.9% of which Germany 2,202 2,199 -0.1% -0.1%
France 2,895 3,021 +4.3% +3.0% United Kingdom & Ireland 2,723
2,389 -12.3% -0.4% Mediterranean Region 2,695 2,984 +10.7% +6.5%
Rest of the World 679 902 +32.8% +8.4% Total P&C revenues
14,195 14,519 +2.3% +2.3% Personal lines +2% with positive net new
contracts -- Personal lines (59% of P&C premiums) were up 2%.
Motor revenues were up 2% mainly driven by the Mediterranean
Region, up 5% on the back of strong growth in emerging markets
(Turkey +14% and Gulf +54%) and Spain (+4%), as well as Asia
(+16%). This was partially offset by Germany (-3%) with higher
competition in the lower price segments and by the UK & Ireland
(-5%) resulting from (i) continued pressure on tariffs in Ireland,
(ii) lower volumes from the UK intermediary business as a result of
certain rating actions, partially offset by (iii) +24% growth at
Swiftcover (direct UK). Non-motor revenues increased by 3% with
strong growth in (i) the Mediterranean Region (+7%) led by Spain in
household and health and (ii) France (+3%), partially offset by
lower contributions from (iii) the UK & Ireland (+1%), (iv)
Switzerland (0%) and Germany (+2%). Commercial lines +2% --
Commercial lines (39% of P&C premiums) were up 2%. Motor
revenues were up 1%, with Switzerland up 8% as a result of a new
sales force compensation structure and France up 2%, partially
offset by the Mediterranean Region (-2%) and a flat evolution in
the UK & Ireland. Non-motor revenues were up 2%, as strong
growth (i) in the Mediterranean Region (+9%) driven by health
business in the Gulf region, and (ii) in France (+4%) fuelled by
Construction, was partially offset by (iii) Switzerland (-3%) and
(iv) the UK & Ireland (-2%) reflecting a deterioration across
all commercial lines (except Health) due to difficult market
conditions. Asset Management -- Asset Management revenues decreased
by 3% on a comparable basis to Euro 2,102 million while overall
average assets under management remained stable. -- Assets Under
Management of AllianceBernstein and AXA Investment Managers were
down Euro 111 billion to Euro 981 billion as of June 30, 2008, as
negative market conditions and negative exchange rate impacts, were
partially offset by positive net inflows and a favorable scope
effect. Assets Under Management Roll-forward Alliance In Euro
billion Bernstein AXA IM Total AUM at FY07 543.5 548.4 1,091.9 Net
inflows -4.0 6.2 2.2 Market appreciation -50.7 -22.4 -73.1 Scope
& other impacts - 4.6 4.6 Forex impact -34.2 -10.3 -44.4 AUM at
1H08 454.6 526.5 981.1 Average AUM over the period 493.6 529.8
1,023.3 Change of average AUM on a reported basis -13% -2% -7%
Change of average AUM on a comparable basis 0% +3% 2% Positive
Asset Management net inflows AllianceBernstein recorded net
outflows of Euro -4 billion, mainly from Retail clients, partially
offset by positive net inflows from institutional clients. AXA
Investment Managers net inflows of Euro +6 billion were driven by
AXA's Main funds (Euro +9 billion) and Institutional clients (Euro
+1 billion), partially offset by the Retail segment (Euro -4
billion). International Insurance International Insurance revenues
were up 5% to Euro 1,673 million with AXA Corporate Solutions
Assurance up 5%, driven by Marine, Construction and Liability, as
well as AXA Assistance up 7%. Earnings : Key figures Change
------------------- on a In Euro million comparable 1H07 1H08
Reported basis Life & Savings 1,489 1,396 -6% -1% Property
& Casualty 963 1,133 +18% +20% Asset Management 286 285 +0% +9%
International Insurance 119 172 +44% +44% Banking 11 24 +117% +118%
Holdings(vii) -181 -245 +35% +42% Underlying Earnings(vii) 2,688
2,766 +3% +7% Net realized capital gains 762 834 Net impairments
-26 -786 Equity portfolio hedging (intrinsic value) 0 477 Adjusted
Earnings(8) 3,424 3,290 -4% -1% Change in the fair value on mutual
funds and other assets -24 -739 Of which Asset Backed Securities
-237 Of which other assets -24 -502 Equity portfolio hedging (time
value) -24 -152 Forex derivatives & other 1 -162 Interest rates
derivatives -136 -87 Other -61 12 Net income 3,180 2,162 -32% -29%
Earnings per share In Euro Underlying EPS(3) 1.22 1.28 +5% Adjusted
EPS(3) 1.58 1.54 -2% Net income per share 1.47 1.07 -28% Underlying
Earnings, Adjusted Earnings and NBV are Non-GAAP measures and as
such are not audited(5) Underlying Earnings Underlying Earnings
were up 7% to Euro 2,766 million mainly reflecting the uplift in
Property & Casualty (+20%) benefiting from the non-recurrence
of 1H07 natural catastrophe events, and the strong resilience of
Life & Savings (-1%) and Asset Management (+9%) businesses.
Resilient L&S Underlying Earnings, down 1% -- Life &
Savings Underlying Earnings were down 1% to Euro 1,396 million.
Underlying investment margin was up 4%(ix) to Euro 1,336 million,
reflecting higher asset yield while average general account
reserves slightly decreased. Fees & Revenues were up 3%(9) to
Euro 3,389 million with (i) +2%(9) in loadings on premiums to Euro
2,053 million broadly in line with acquisition expenses, (ii)
+8%(9) in unit-linked fees to Euro 1,033 million notably due to
improved margins while average reserves were flat and (iii) -3%(9)
in other fees and revenues notably due to sale of most of
Enterprise retail mutual funds in the US. Unit-linked reserves were
down 7% vs. December 31, 2007 to Euro 161 billion, due to Euro -16
billion decrease in market value partially offset by Euro +4
billion net inflows. Technical margin was down 34%(9) to Euro 569
million, negatively impacted by Euro -64 million loss, net of DAC
reactivity and tax, from GMDB/IB in the US (vs. ca. Euro +19
million in 1H07). This was primarily due to underperformance of
certain separate account funds vs. indices used in delta hedging
(basis risk). Expenses, net of DAC/DOC and VBI were down 1%(9) to
Euro 3,343 million mainly driven by (i) lower VBI amortization due
to the non-recurrence of certain 1H07 unfavorable impacts (Japan),
(ii) flat acquisition expenses broadly in line with sales trend,
while (iii) administrative expenses were contained (up 1%). Tax and
minority interests were down 8%(9) to Euro 555 million mainly as a
result of lower pre-tax earnings and a decrease in tax rates,
notably in Germany. Very strong P&C Underlying Earnings up +20%
-- Property & Casualty Underlying Earnings were up 20% to Euro
1,133 million benefiting from the non-recurrence of 1H07 natural
catastrophes. Property & Casualty: Combined ratio by country
Change on a comparable In % 1H07 1H08 basis NORCEE(6) 99.4 96.7
-2.6pts of which Belgium 98.4 98.0 -0.4pt of which Switzerland 97.7
92.8 -4.9pts of which Germany 101.0 98.0 -2.9pts France 97.2 96.9
-0.3pt Mediterranean region 95.8 93.8 -2.0pts UK & Ireland
102.4 98.2 -4.2pts Rest of the world 92.1 96.8 +4.9pts Total
P&C 98.4 96.4 -1.9pts (Photo:
http://www.newscom.com/cgi-bin/prnh/20080807/NYTH072 ) Loss ratio
improved by 2.2 points to 68.4% reflecting improvements across the
board mainly as a result of lower natural catastrophe levels
compared to 1H07 (floods in the UK and Kyrill in continental
Europe), while reserving ratio(x) (net technical reserves to net
earned premiums) continued to increase (+4 points to 198%). Expense
ratio increased by 0.3 point to 28.0% with acquisition expense
ratio down 0.1 point largely driven by a change in employees'
pension scheme in Switzerland, while administrative expense ratio
was up 0.4 point mainly driven by higher expenses in the UK from
the acquired brokers, legal fees related to regulatory reviews and
IT investments. Investment income(xi) was up 6% to Euro 1,156
million mainly reflecting both a higher average asset base (+4%)
and increased investment yield. Tax and minority interests were up
42% to Euro 474 million due to higher earnings and the
non-recurrence of 2007 favorable tax developments. Asset Management
Underlying Earnings up 9% -- Asset Management Underlying Earnings
were up 9% to Euro 285 million with AXA Investment Managers up 22%
and AllianceBernstein down 3%. AllianceBernstein Underlying
Earnings were down 3% to Euro 128 million driven by lower revenues
and higher tax rate, partially offset by lower expenses (mainly
employee compensation and distribution expenses). AXA Investment
Managers Underlying Earnings were up 22% to Euro 158 million, as
lower revenues were more than offset by a high positive carried
interest and a positive tax item. -- International Insurance
Underlying Earnings were up 44% to Euro 172 million mainly driven
by favorable run-off reserve and tax developments at AXA
Liabilities Managers, partially offset by AXA Corporate Solutions
Assurance large losses following Chinese Earthquake. -- Banking
Underlying Earnings were up Euro 13 million to Euro 24 million
driven mainly by AXA Bank Europe (Belgium). -- Holdings(7)
Underlying Earnings decreased by Euro 75 million (+42%) on a
comparable basis from Euro -181 million to Euro -245 million,
mainly impacted by higher financial charges related to external
growth financing and internal refinancing (Euro -51 million).
Adjusted Earnings Resilient Adjusted Earnings due to equity hedge
programs Adjusted Earnings reached Euro 3,290 million, down 1% as a
result of (i) higher Underlying Earnings, (ii) Euro 834 million net
capital gains (iii) Euro -786 million impairments, partially offset
by (iv) Euro 477 million positive impact from equity hedges.
Realized capital gains amounted to Euro 834 million, including Euro
630 million on equities and Euro 133 million on real estate.
Impairments amounted to Euro -786 million, of which Euro -661
million on equities and Euro -47 million on Asset Backed
Securities. Change in market value of options used to hedge the
equity portfolio contributed Euro 477 million in Adjusted Earnings
(corresponding to the positive change in the intrinsic value of
those hedges while negative changes in the options' time value were
accounted for in Net Income). Net Income Net Income impacted by
mark-to-market accounting Net Income was down 29% to Euro 2,162
million mainly as a result of the negative impact of mark-to-market
accounting for certain financial assets, notably fixed income
assets. The decrease in net income is largely explained by the
following mark-to- market items: (i) Mark-to-market of assets
accounted for as AFS P&L mainly as a result of widening spreads
and rise in interest rates: a. Euro -237 million from ABS b. Euro
-502 million, mainly from fixed income funds (ii) Change in time
value of options used to hedge equity assets (Euro - 152 million).
(iii) Mark-to-market of interest rate and Forex items (mostly used
to hedge the balance sheet) for Euro -87 million and Euro -162
million respectively. Increase in interest rates and spreads
widening generated a Euro 1 billion after tax decrease in the value
of financial debt (not accounted for under IFRS, either in the
shareholders' equity or in the net income). Shareholders' Equity
& Solvency Solid financial strength -- Shareholders' equity was
Euro 40.5 billion, down Euro 5.1 billion notably due to a Euro 4.3
billion lower level of net unrealized capital gains on equities
(Euro -2.4 billion) and fixed income (Euro -1.9 billion). The
decrease in unrealized capital gains was mainly due to (i) the
realization of equity capital gains during the period as well as
negative stock market evolution and (ii) the impact of the
increasing interest rates and credit spreads on fixed income
securities generating an accounting mismatch (under current
applicable IFRS rules, liabilities are not marked-to- market). --
Unrealized capital gains on equities (included in shareholders'
equity) amounted to Euro 2.8 billion as of June 30, 2008.
Unrealized gains on real estate (not included in shareholders'
equity) amounted to Euro 2.1 billion as of June 30, 2008. Strong
Solvency confirmed -- AXA's European consolidated solvency margin
was resilient: - 148% Solvency I ratio based on June 30, 2008
estimates, compared to 154% as of December 31, 2007, benefiting
from positive free cash-flows (+16 points) mainly offset by
negative impact from financial markets (-20 points) and capital
management/M&A (-2 points). Sensitivity to a further drop in
equity markets of 10% and 20% is respectively estimated at -3
points and -9 points taking into account equity hedging program. -
ca. 175% Solvency II ratio (QIS4(4)) based on June 30, 2008
estimates, up ca. 5 pts vs. December 31, 2007, as the drop in
Available Financial Resources (mostly due to lower equity markets)
was more than offset by the decrease in Solvency Capital
Requirement impacted by the hedging of the Group's equity
portfolio(xii). -- Adjusted ROE (Adjusted earnings Return on
Equity) stood at 20% in 1H08. Invested assets Diversified asset
portfolio of good quality AXA's invested assets amounted to Euro
579 billion including a Euro 363 billion General Account, invested
in a diversified portfolio mainly comprised of fixed income
investments (79%), listed equities (8%) and real estate (5%).
Changes in General Account allocation included: -- Increased
corporate bond exposure from 35% to 38% with an average rating of
A+, to capture the higher level of spreads currently available --
Lower equity exposure from 10% to 8% (before hedging) to reduce
balance sheet sensitivity to current volatile equity markets. The
negative mark-to-market evolution of ABS over the year amounted to
Euro -1.6 billion or Euro -0.6 billion net of policyholders'
participation, DAC and VBI reactivity and tax, of which Euro -0.3
billion was in the P&L and Euro -0.3 billion was in OCI. Net
investment in securities wrapped by monoline insurers stood at Euro
1.1 billion and was mainly included in the UK With-Profit accounts.
AXA had no significant direct holdings in debt or equity securities
issued by monoline insurers. Exposure to Government Sponsored
Enterprises (Fannie Mae, Freddie Mac...) is mostly related to Euro
1.4 billion Agency Pools(xiii). Notes (i) Annual Premium equivalent
(APE) represents 100% of new business regular premiums + 10% of new
business single premiums. APE is Group share (ii) Net of interest
charges on perpetual subordinated notes (TSDI) and perpetual deeply
subordinated notes (TSS) (iii) Change in market value of options
hedging equity portfolio is of Euro 325 million (of which Euro +477
million of change in intrinsic value accounted in Adjusted earnings
and Euro -152 million of change in time value accounted in Net
Income) (iv) Fourth Quantitative Impact Study (v) To be paid in
2009 (vi) Northern Central and Eastern Europe: Germany, Belgium,
Switzerland, Central and Eastern Europe and Luxemburg (vii) And
other companies (viii) Underlying earnings are Adjusted earnings,
excluding net capital gains attributable to shareholders. Adjusted
earnings represent Net income before the impact of exceptional
operations, goodwill and related intangibles
amortization/impairments, and profit or loss on financial assets
(classified under the fair value option) and derivatives. Life
& Savings NBV and APE, adjusted and underlying earnings are
non-GAAP measures and as such are not audited, may not be
comparable to similarly titles measures reported by other
companies, and should be read together with our GAAP measure.
Management uses these non-GAAP measures as key indicators of
performance in assessing AXA's various businesses and believes that
the presentation of these measures provide useful and important
information to shareholders and investors as measures of AXA's
financial performance. (ix) Changes are pro-forma restated from the
scope impact related to MPS, the Forex impact and the neutral
impact from the reclassification of commissions in France and
deferred expenses/loading in the UK. Full details are provided in
the activity report's sections related to these countries (x) Net
technical reserves / Net earned premiums (xi) Net of financial
charges (xii) In order to reduce the exposure of AXA's shareholders
equity to equity investments and to limit the Solvency I coverage
ratio volatility, AXA decided to hedge most of its direct equity
exposure through put spread and equity swaps strategies partially
financed by the sale of call options (for more details see page 36
of the analysts' presentation and page 64 of the 1H08 Activity
Report). (xiii) Mortgage backed securities of high quality
benefiting from the guarantees of the US GSEs About AXA AXA Group
is a worldwide leader in Financial Protection. AXA's operations are
diverse geographically, with major operations in Europe, North
America and the Asia/Pacific area. AXA had Euro 1,281 billion in
assets under management as of December 31, 2007. For full year
2007, IFRS revenues amounted to Euro 93.6 billion and IFRS adjusted
earnings to Euro 6.1 billion. The AXA ordinary share is listed on
compartment A of Euronext Paris under the ticker symbol CS (ISIN
FR0000120628 - Bloomberg: CS FP - Reuters: AXAF.PA). The American
Depository Share is also listed on the NYSE under the ticker symbol
AXA. This press release is available on the AXA Group website:
http://www.axa.com/ AXA Investor Relations: AXA Media Relations:
Etienne Bouas-Laurent: Christophe Dufraux: +33.1.40.75.46.85
+33.1.40.75.46.74 Paul-Antoine Cristofari: Clara Rodrigo:
+33.1.40.75.73.60 +33.1.40.75.47.22 Emmanuel Touzeau: Laurent
Secheret: +33.1.40.75.49.05 +33.1.40.75.48.17 George Guerrero:
Armelle Vercken: +1.212.314.28.68 +33.1.40.75.46.42 Mary Taylor:
+1.212.314.58.45 AXA Individual shareholders Relations:
+33.1.40.75.48.43 IMPORTANT LEGAL INFORMATION AND CAUTIONARY
STATEMENTS CONCERNING FORWARD- LOOKING STATEMENTS Certain
statements contained herein are forward-looking statements
including, but not limited to, statements that are predications of
or indicate future events, trends, plans or objectives. Undue
reliance should not be placed on such statements because, by their
nature, they are subject to known and unknown risks and
uncertainties. Please refer to AXA's Annual Report on Form 20-F and
AXA's Document de Reference for the year ended December 31, 2007,
for a description of certain important factors, risks and
uncertainties that may affect AXA's business. In particular, please
refer to the section "Special Note Regarding Forward-Looking
Statements" in AXA's Annual Report on Form 20-F. AXA undertakes no
obligation to publicly update or revise any of these
forward-looking statements, whether to reflect new information,
future events or circumstances or otherwise. APPENDIX 1: Life &
Savings - Breakdown of APE between unit-linked non unit-linked and
mutual funds Breakdown of APE - 12 main countries, regions and
modelled businesses % UL in APE UL change Group share 1H08 APE
(excl. mutual on comparable in Euro million funds) basis Mutual UL
Non-UL Funds 1H07 1H08 France 105 585 26% 15% -44% United States
510 111 186 71% 82% -3% United Kingdom 623 69 91% 90% -4% NORCEE
Germany 94 142 32% 40% +38% Switzerland 10 182 1 5% 5% +38% Belgium
13 141 12% 9% -40% Central & Eastern Europe 45 29 2 68% 60%
+36% ASIA PACIFIC Japan 48 206 19% 19% -14% Australia/New-Zealand 8
25 180 30% 23% +3% Hong Kong 28 28 57% 50% -21% South East Asia
& China 21 13 1 -- 62% +25% Mediterranean Region 36 163 6 13%
18% +62% Total 1,541 1,694 376 52% 48% -5% APPENDIX 2: 1H08
Property & Casualty revenues contribution & growth by
business line Property & Casualty revenues - contribution &
growth by business line Personal Personal Commercial Commercial
Motor Non-Motor Motor Non-Motor Change Change Change Change in % on
on on on % Gross comp. % Gross comp. % Gross comp. % Gross comp.
revenues basis revenues basis revenues basis revenues basis France
32% +2% 27% +3% 8% +2% 33% +3% United Kingdom (a) 14% -5% 36% +1%
7% -0% 41% -2% NORCEE 35% -1% 23% +1% 6% +3% 33% -2% Of which
Germany 33% -3% 30% +2% 6% +0% 25% -1% Of which Belgium 33% -0% 26%
+1% 7% +0% 31% -0% Of which Switzerland 39% +0% 11% -0% 4% +8% 46%
-3% Mediterranean Region 51% +5% 19% +7% 6% -2% 24% +9% Canada 34%
+7% 16% +8% 8% +1% 42% +11% Asia 73% +16% 7% +9% 3% -4% 17% +18%
Total 35% +2% 24% +3% 6% +1% 32% +2% (a) Including Ireland.
APPENDIX 3: AXA Group IFRS revenues - HY08 vs. HY07 AXA Group IFRS
revenues - contributions & growth by segment and country/region
IFRS revenues change In Euro million 1H07 1H08
----------------------- IFRS IFRS Reported Comp. basis United
States 8,205 6,732 -18.0% -5.3% France 7,791 7,441 -4.5% -2.1%
NORCEE 8,076 8,089 +0.2% +1.0% Of which Germany 2,985 2,955 -1.0%
-1.0% Of which Switzerland 3,232 3,274 1.3% 4.0% Of which Belgium
1,628 1,600 -1.7% -1.6% Of which Central & Eastern Europe 202
229 13.5% 5.0% United Kingdom 2,388 1,900 -20.4% -8.6% Asia Pacific
4,105 3,822 -6.9% -1.5% Of which Japan 2,663 2,354 -11.6% -7.8% Of
which Australia/New-Zealand 678 801 18.2% 18.9% Of which Hong Kong
616 533 -13.6% -1.0% Of which South East Asia 148 134 -9.6% 21.5%
Mediterranean Region 930 2,788 199.7% 7.5% Other countries 59 55
-6.1% -4.1% Life & Savings 31,555 30,826 -2.3% -1.8% NORCEE
5,202 5,224 0.4% -0.1% Of which Germany 2,202 2,199 -0.1% -0.1% Of
which Belgium 1,155 1,155 0.0% 0.5% Of which Switzerland 1,794
1,805 0.6% -0.9% France 2,895 3,021 4.3% 3.0% Mediterranean Region
2,695 2,984 10.7% 6.5% United Kingdom & Ireland 2,723 2,389
-12.3% -0.4% Canada 514 527 2.4% 4.6% Asia 165 375 127.5% 13.7%
Property & Casualty 14,195 14,519 2.3% 2.3% AXA Corporate
Solutions Assurance 1,196 1,220 2.0% 5.5% Others 1,292 452 -65.0%
4.4% International Insurance(a) 2,489 1,673 -32.8% 5.2%
AllianceBernstein 1,552 1,340 -13.7% -0.6% AXA Investment Managers
855 763 -10.8% -6.4% Asset Management 2,407 2,102 -12.6% -2.7%
Banking 153 197 28.1% 16.7% Total 50,801 49,319 -2.9% -0.4% (a) AXA
RE's revenues amounted to Euro 826 million at 1H07 and are excluded
from comparison between 1H07 and 1H08 on a comparable basis.
APPENDIX 4: AXA Group IFRS Revenues in local currency - Discrete
quarters Total revenues - Discrete contribution by country/Region
in local currency (In million local currency except Japan in
billion) 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 Life & Savings United
States 5,258 5,654 5,601 5,738 5,157 5,149 France 4,313 3,479 3,407
3,846 3,976 3,465 NORCEE of which Germany 1,518 1,467 1,486 1,729
1,477 1,478 of which Switzerland 4,434 837 580 907 4,342 915 of
which Belgium 957 671 617 828 989 611 of which Central &
Eastern Europe 103 98 106 115 113 116 United Kingdom 765 846 771
785 708 765 Asia Pacific of which Japan 201 210 197 202 185 193 of
which Australia/New- Zealand 515 600 614 537 701 625 of which Hong
Kong 3,690 2,729 3,131 3,820 3,212 3,145 Mediterranean Region 390
540 335 653 1,291 1,497 Property & Casualty NORCEE of which
Germany 1,620 582 707 597 1,602 597 of which Switzerland 2,676 250
156 160 2,643 256 of which Belgium 641 514 493 464 637 517 France
1,744 1,151 1,286 1,148 1,821 1,200 Mediterranean Region 1,342
1,353 1,128 1,453 1,547 1,436 United Kingdom & Ireland 863 975
849 787 873 979 Canada 334 442 417 393 349 463 International
Insurance AXA Corporate Solutions Assurance 859 337 314 294 889 331
Others, including AXA RE 859 433 316 154 247 205 Asset Management
AllianceBernstein 987 1,077 1,076 1,148 1,045 1,006 AXA Investment
Managers 397 458 430 447 374 388 Banking & Other 80 76 89 79 88
89 APPENDIX 5: Life & Savings New Business Volume (APE), Value
(NBV) and NBV to APE margin APE, NBV & NBV margin - 12 main
countries, regions and modelled businesses Change on Change on
Change on a a a in Euro million compar- compar- 1H08 compar- 1H07
1H08 able 1H07 1H08 able NBV/AP able APE APE basis NBV NBV basis
margin basis United States 1,107 808 -14.0% 196 144 -15.4% 17.8%
-0.3 pt France 642 690 -2.9% 119 92 -22.5% 13.3% -3.4 pts United
Kingdom 819 692 -2.9% 74 54 -16.7% 7.7% -1.3 pts NORCEE 582 660
+7.8% 183 209 +8.1% 31.6% +0.1pt Germany 207 236 +10.3% 64 75 +5.7%
31.8% -1.4pts Switzerland 147 193 +17.7% 35 54 +48.1% 28.2% +5.8pts
Belgium 183 154 -15.7% 76 67 -11.8% 43.2% +1.9pts Central &
Eastern Europe 44 76 +56.5% 8 12 +35.8% 16.3% -2.5pts ASIA PACIFIC
642 558 -14.1% 260 256 -0.1% 45.8% +6.5pts Japan 308 253 -14.6% 197
191 +0.4% 75.4% +11.2pts Australia/New- Zealand 266 212 -20.6% 24
22 -9.5% 10.1% +1.2pts Hong Kong 69 56 -8.4% 39 32 -5.5% 57.9%
+1.8pts South East Asia & China 36 +37.5% 11 +39.3% 29.5%
+0.4pts Mediterranean 84 204 -1.5% 17 31 +22.7% 15.4% +3.0pts
Region TOTAL 3,877 3,611 -6.0% 848 785 -5.5% 21.7% +0.1 pt APPENDIX
6: Earnings summary after taxes and minority interests Income Net
income from Goodwill Consolidated Group Share discontinued
Integration and related Earnings operations costs intangibles (in
Euro million) 1H07 1H08 1H07 1H08 1H07 1H08 1H07 1H08 Life &
Savings 1,849 1,007 54 - (13) (13) (29) (12) France 440 596 - - - -
- - United States 468 297 - - - - (20) (2) United Kingdom 90 113 -
- (5) (2) (6) (6) Japan 188 (28) - - (0) (2) - - Germany 78 43 - -
(0) (1) - - Switzerland 96 (24) - - (1) (2) (2) (2) Belgium 237
(85) - - (2) (4) - (1) Mediterranean Region 45 39 - - (4) (2) (0)
(0) Other countries 205 56 54 - (1) - (1) (1) of which
Australia/New Zealand 69 (12) - - - - - - of which Hong Kong 72 60
- - - - - - Property & Casualty 1,198 1,028 20 - (25) (24) (26)
(27) France 255 184 - - - - - - United Kingdom & Ireland 150
105 - - - - (4) (10) Germany 235 194 - - (1) (6) - - Belgium 177
161 - - (6) (9) - (0) Mediterranean Region 217 266 - - (17) (5)
(14) (3) Switzerland 58 67 - - (1) (4) (6) (10) Other countries 107
51 20 - (0) - (1) (4) International Insurance 127 155 - - - - - -
AXA Corporate Solutions Assurance 70 25 - - - - - - Other 57 130 -
- - - - - Asset Management 292 198 - - (2) (1) - (4)
AllianceBernstein 145 122 - - - - - (4) AXA Investment Managers 148
76 - - (2) (1) - - Banking 5 11 - - (1) (3) - (0) Holdings and
other companies (292) (238) (0) - (22) - - - TOTAL 3,180 2,162 - -
(64) (41) (55) (43) Profit or loss Consolidated (including change)
Earnings Exceptional on financial assets (in Euro million)
operations (under Fair Value Adjusted option) & derivatives
Earnings 1H07 1H08 1H07 1H08 1H07 1H08 Life & Savings (8) 1
(61) (469) 1,905 1,501 France - - (38) (114) 478 710 United States
(7) 1 7 (8) 488 306 United Kingdom - - (11) 44 112 76 Japan - -
(23) (183) 212 157 Germany - - 4 (9) 75 53 Switzerland - - 18 (49)
81 30 Belgium - - (20) (133) 260 52 Mediterranean Region - - 0 (11)
49 53 Other countries (0) - 3 (6) 150 63 of which Australia/New
Zealand - - 3 (3) 66 (9) of which Hong Kong (0) - (2) (1) 73 61
Property & Casualty (3) 2 (27) (192) 1,259 1,269 France - (4)
(14) (91) 269 278 United Kingdom & Ireland - - 0 (4) 154 118
Germany - - 2 (45) 234 244 Belgium - - (4) (22) 187 194
Mediterranean Region - 6 (6) (12) 254 281 Switzerland (3) - (6)
(17) 74 99 Other countries - - 1 0 87 55 International Insurance 1
- (13) (24) 139 179 AXA Corporate Solutions Assurance - - (9) (23)
78 48 Other 1 - (4) (1) 61 131 Asset Management (7) 10 14 (93) 287
285 AllianceBernstein (7) 10 - (12) 152 128 AXA Investment Managers
- - 14 (81) 136 158 Banking - - (8) (4) 14 19 Holdings and other
companies (1) - (89) (275) (180) 37 TOTAL (17) 13 (182) (1,057)
3,424 3,290 Consolidated Net realized Earnings capital gains (in
Euro million) attributable to Underlying Underlying Earnings
shareholders Earnings Change at 1H07 1H08 1H07 1H08 Change constant
FX Life & Savings 416 105 1,489 1,396 -6% -1% France 125 279
353 431 22% 22% United States (0) (20) 488 326 -33% -23% United
Kingdom (23) (16) 136 92 -32% -22% Japan 80 24 133 132 0% 4%
Germany 2 (14) 73 67 -8% -8% Switzerland (1) (63) 82 93 14% 12%
Belgium 188 (32) 72 84 16% 16% Mediterranean Region 8 10 40 43 7%
7% Other countries 38 (65) 112 128 14% 22% of which Australia/New
Zealand 19 (57) 47 48 1% 2% of which Hong Kong 14 (2) 59 64 8% 23%
Property & Casualty 296 136 963 1,133 18% 20% France 32 24 237
254 7% 7% United Kingdom & Ireland 26 (55) 129 174 35% 51%
Germany 76 72 158 173 10% 10% Belgium 79 86 108 107 -1% -1%
Mediterranean Region 63 38 191 243 27% 28% Switzerland 1 (32) 73
131 N/A N/A Other countries 19 3 68 52 -23% -22% International
Insurance 20 7 119 172 44% 44% AXA Corporate Solutions Assurance 20
2 58 46 -20% -26% Other (1) 6 62 126 105% 111% Asset Management 1 -
286 285 0% 9% AllianceBernstein 1 - 151 128 -15% -3% AXA Investment
Managers - - 136 158 16% 22% Banking 3 (5) 11 24 117% 118% Holdings
and other companies 1 282 (181) (245) 35% 42% TOTAL 736 524 2,688
2,766 3% 7% APPENDIX 7: AXA Group simplified Balance Sheet AXA
Group Assets AXA Group liabilities In Euro billion 1H07 1H08 In
Euro billion 1H07 1H08 Goodwill 16.3 15.7 Shareholders' Equity, Gp
share 45.6 40.5 VBI 4.4 4.3 Minority interests 3.3 3.1 DAC &
equivalent 16.8 17.6 SH EQUITY & MINORITY INTERESTS 48.9 43.7
Other intangibles 3.3 3.2 Technical reserves 556.9 532.1
Investments 597.9 556.8 Provisions for risks & charges 8.7 8.2
Other assets & 65.6 68.4 Financing debt 10.9 13.2 receivables
Cash & cash 18.7 22.0 Other payables & equivalents
liabilities 97.6 90.9 TOTAL ASSETS 722.9 688.0 TOTAL LIABILITIES
722.9 688.0 http://www.newscom.com/cgi-bin/prnh/20080807/NYTH072
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