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)
SIX MONTHS ENDED JUNE 30
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2008 2009
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CONTRIBUTION TO IFRS GROSS REVENUES PER AXA PRESS RELEASE IN EURO
Gross Premiums 6,359 5,270
Other Revenues (A) 373 314
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6,732 5,584
Average exchange rate US$1.00 = 0.65321 0.74912
IN USD 10,306 7,454
Reconciling items:
Less: Other Revenues (A) (570) (418)
Less: Deposits from Universal life and investment-type product policy fee income (B) (8,736) (6,066)
Less: Reinsurance ceded premiums (C) (244) (244)
Add: Others (D) 13 11
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Total Reconciling items (9,537) (6,717)
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CONSOLIDATED AXA FINANCIAL, INC. US GAAP PREMIUMS 769 737
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(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 USGAAP NET INCOME
(in millions)
6 MONTHS ENDED JUNE 30,
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2008 2009
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CONTRIBUTION TO IFRS UNDERLYING EARNINGS, PER AXA PRESS RELEASE IN EURO
US Life & Savings 326 271
Asset Management 128 95
AXA Financial Holding Company (48) (60)
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TOTAL CONTRIBUTION TO IFRS UNDERLYING EARNINGS IN EURO 406 306
Net realized capital gains attributable to shareholders (20) 16
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TOTAL CONTRIBUTION TO IFRS ADJUSTED EARNINGS IN EURO 386 322
Profit or loss on financial assets (under Fair Value option) and derivatives (21) (408)
Exceptional operations and discontinued operations 11 (5)
Goodwill and related intangibles (6) -
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TOTAL CONTRIBUTION TO IFRS NET INCOME, GROUP SHARE IN EURO 370 (91)
Average exchange rate US$1.00 = 0.65321 0.74912
IN USD 567 (122)
Reconciling items:
(A) GMIB/DB Reserves & Reinsurance Asset 746 (2,227)
(B) Investment income & capital gains (losses) 13 (18)
(C) Amortization of goodwill & other intangible assets (8) (12)
(D) Employee Benefits Plan - Fresh Start, net of DAC capitalization (33) (36)
(E) Employee stock based compensation (2) (1)
(F) Other Reserve adjustment - including SOP 03-01 11 3
(G) Amortization of DAC & VOBA (147) 325
(H) Other 2 (17)
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Total Reconciling items 582 (1,983)
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CONSOLIDATED US GAAP NET EARNINGS $ 1,149 $ (2,105)
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(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. 2008
includes the IFRS impacts of modifications made to the MONY Benefit Plans,
which are recognized as a curtailment gain for IFRS but are deferred for
USGAAP purposes.
(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, such as the No Lapse Guarantee feature contained in variable and
universal life contracts under SOP03-01.
(G) Represents DAC and VOBA reactivity to other IFRS adjustments.
(H) Other primarily represents operations assumed on behalf of AXA Japan and
different effective tax rates under IFRS and USGAAP.