AXA Financial, Inc. | |||||||
Reconciliation of AXA US Life & Savings Contribution to AXA Group IFRS Revenues | |||||||
with Consolidated AXA Financial, Inc. Premiums under USGAAP | |||||||
(in millions) | |||||||
Twelve Months Ended December 31, | |||||||
2009 | 2010 | ||||||
Contribution to IFRS Gross Revenues per AXA Press Release | in Euro | ||||||
Gross Premiums | 8,717 | 8,647 | |||||
Other Revenues (A) | 667 | 811 | |||||
9,384 | 9,458 | ||||||
Average exchange rate US$1.00 = | 0.71712 | 0.74796 | |||||
in US$ | 13,086 | 12,645 | |||||
Reconciling items: | |||||||
Less: Other Revenues (A) | (931) | (1,084) | |||||
Less: Deposits from Universal life and investment-type product policy fee income (B) | (10,162) | (9,520) | |||||
Less: Reinsurance ceded premiums (C) | (528) | (523) | |||||
Add: Others (D) | 26 | 24 | |||||
Total Reconciling items | (11,595) | (11,103) | |||||
Consolidated AXA Financial, Inc. US GAAP Premiums | 1,491 | 1,542 | |||||
(A) | Represents fees received from servicing and advisory business, and fees on the sales of Mutual Funds reported within Commissions, Fees & Other Income in the US GAAP Statement of Earnings | ||||||
(B) | Reflected as an increase to Policyholder Account Balances in the US GAAP Balance Sheet | ||||||
(C) | Reflected as a reduction to Premiums in the US GAAP Statement of Earnings | ||||||
(D) | Represents Pension fee income and Reinsurance Assumed Premiums that are excluded from premiums for IFRS reporting |
AXA Financial, Inc. | |||||||||||
Reconciliation of the Contribution to IFRS Underlying Earnings, Adjusted Earnings and Net Income, Group Share to AXA Financial's US GAAP Net Earnings | |||||||||||
(in millions) | |||||||||||
12 Months Ended December 31, | |||||||||||
2009 | 2010 | ||||||||||
Contribution to IFRS Underlying Earnings, per AXA Press Release | in Euro | ||||||||||
US Life & Savings | 545 | 478 | |||||||||
Asset Management | 185 | 143 | |||||||||
AXA Financial Holding Company | (99 | ) | (139 | ) | |||||||
Total Contribution to IFRS Underlying Earnings | in Euro | 631 | 482 | ||||||||
Net realized capital gains attributable to shareholders | (16 | ) | (138 | ) | |||||||
Total Contribution to IFRS Adjusted Earnings | in Euro | 615 | 344 | ||||||||
Profit or loss on financial assets (under Fair Value option) and derivatives | (541 | ) | 23 | ||||||||
Exceptional Operations (including discontinued operations) | - | 2 | |||||||||
Integration and restructuring costs | - | (32 | ) | ||||||||
Goodwill and related intangibles | (1 | ) | (1 | ) | |||||||
Total Contribution to IFRS Net Income, Group Share | in Euro | 73 | 336 | ||||||||
Average exchange rate | US$1.00 = | 0.71712 | 0.74796 | ||||||||
in USD | 102 | 448 | |||||||||
Reconciling items: | |||||||||||
(A) | GMIB/DB Reserves & Reinsurance Asset | (3,573 | ) | 231 | |||||||
(B) | Investment income & capital gains (losses) | (38 | ) | 18 | |||||||
(C) | Amortization of goodwill & other intangible assets | (24 | ) | (32 | ) | ||||||
(D) | Employee Benefits Plan - Fresh Start, net of DAC capitalization | (69 | ) | (89 | ) | ||||||
(E) | Employee stock based compensation | (10 | ) | (21 | ) | ||||||
(F) | Other Reserve adjustment - including SOP 03-01 | (9 | ) | (3 | ) | ||||||
(G) | Amortization of DAC & VOBA | 617 | (548 | ) | |||||||
(H) | Tax Reserves Release | - | 148 | ||||||||
(I) | Tax on sale of Alliance units | 11 | 9 | ||||||||
(J) | Other | (129 | ) | (106 | ) | ||||||
Total Reconciling items | (3,224 | ) | (393 | ) | |||||||
Consolidated US GAAP Net Earnings | $ | (3,122 | ) | $ | 55 | ||||||
(A) | Reflects the accounting for reinsurance contracts ceding variable annuity Guaranted Minimum Income Benefit ('GMIB') features as derivative contracts at fair value under USGAAP vs. ceded reinsurance reserves under IFRS; and insurance reserves for Guaranteed Minimum Death Benefit ("GMDB") and GMIB features subject to economic hedging programs on an SOP 03-1 basis under USGAAP vs. remeasurement to reflect current market conditions under IFRS. | ||||||||||
(B) | Primarily reflects different accounting methodologies for impairments under IFRS and USGAAP. | ||||||||||
(C) | Reflects amortization of acquisition related intangible assets in USGAAP on acquisitions prior to adoption of IFRS. | ||||||||||
(D) | Represents impact of IFRS initial implementation "fresh start" adjustment to eliminate the portion of employee benefit liabilities related to deferred actuarial gains and losses, which has resulted in a reduction of ongoing IFRS employee benefit expenses compared to USGAAP over the period in which those deferred gains and losses would otherwise have been amortized. | ||||||||||
(E) | Primarily reflects different accounting methodologies for share based awards under IFRS and USGAAP. | ||||||||||
(F) | Represents adjustment of MVA liabilities from the IFRS basis accrued account balance (with interest rate floors reflected on a contract-by-contract basis) to the USGAAP basis (which considers the impact of interest rate floors on a block of business basis) and adjustments to the liability related to group pension contracts and certain mortality and annuitization benefits. | ||||||||||
(G) | Represents DAC and VOBA reactivity to other IFRS adjustments. | ||||||||||
(H) | Represents release of state and local deferred taxes for US GAAP reporting resulting from the conversion of ACMC, Inc. from a corporation to a limited liability company. | ||||||||||
(I) | Represents different accounting methodologies related to the tax expense associated with the sale of AllianceBernstein units. | ||||||||||
(J) | Other primarily represents operations assumed on behalf of AXA Japan, Minority Interest in AllianceBernstein owned by AXA Companies and different effective tax rates under IFRS and US GAAP. |