Exhibit 99.4
SELECTED CONSOLIDATED FINANCIAL INFORMATION
AT OR FOR THE YEARS ENDED DECEMBER 31,
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1999 1998 1997 1996 1995
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(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
CONSOLIDATED STATEMENTS OF EARNINGS DATA
Revenues
Universal life and investment-type
product policy fee income.............. $ 1,257.5 $ 1,056.2 $ 950.6 $ 874.0 $ 788.2
Premiums................................. 558.2 588.1 601.5 597.6 606.8
Net investment income(1)................. 2,263.3 2,255.9 2,306.2 2,229.1 2,105.6
Investment (losses) gains, net(2)........ (202.3) 82.2 (46.5) (1.5) (6.9)
Commissions, fees and other income....... 2,018.8 1,389.8 1,095.1 987.6 834.6
Contribution from the Closed Block(3).... 86.4 87.1 102.5 125.0 143.2
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Total revenues............................. 5,981.9 5,459.3 5,009.4 4,811.8 4,471.5
Total benefits and other deductions(4)(5)(6) 5,005.9 4,444.1 4,510.3 4,729.3 4,110.2
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Earnings from continuing operations
before Federal income taxes and
minority interest........................ 976.0 1,015.2 499.1 82.5 361.3
Federal income tax expense (benefit)(7).... 308.7 338.2 90.9 (5.5) 94.9
Minority interest in net income of
consolidated subsidiaries................ 199.4 125.2 54.8 81.7 62.8
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Earnings from continuing operations
before cumulative effect of
accounting change........................ 467.9 551.8 353.4 6.3 203.6
Earnings (loss) from discontinued operations,
net of Federal income taxes:
Investment Banking and Brokerage
segment(8).............................. 630.1 278.6 294.8 199.7 161.8
Other discontinued
operations(1)(9)(10)(11)................ 28.1 2.7 (87.2) (83.8) -
Cumulative effect of accounting changes,
net of Federal income taxes.............. - - - (23.1) -
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Net earnings............................... 1,126.1 833.1 561.0 99.1 365.4
Dividends on preferred stocks.............. - - 15.6 26.7 26.7
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Net Earnings Applicable to
Common Shares............................ $ 1,126.1 $ 833.1 $ 545.4 $ 72.4 $ 338.7
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Per Common Share*:
Basic:
Earnings (loss) from Continuing
Operations before Cumulative
Effect of Accounting Change........... $ 1.07 $ 1.24 $ .84 $ (.06) $ .48
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Net Earnings........................... $ 2.58 $ 1.88 $ 1.35 $ .20 $ .92
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Diluted:
Earnings from Continuing Operations
before Cumulative Effect of
Accounting Change.................... $ 1.04 $ 1.22 $ .81 $ (.06) $ .48
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Net Earnings........................... $ 2.45 $ 1.81 $ 1.24 $ .18 $ .87
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Cash Dividends Per Common Share............ $ .10 $ .10 $ .10 $ .10 $ .10
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CONSOLIDATED BALANCE SHEETS DATA
Total assets(5)(11)........................ $ 101,593.8 $ 89,514.2 $ 81,942.3 $ 74,629.2 $ 70,089.0
Long-term debt............................. 1,926.7 2,113.0 1,838.5 2,500.8 2,893.1
Total liabilities(5)(11)................... 95,754.9 83,821.1 76,668.8 70,641.2 65,980.3
Shareholders' equity....................... 5,838.9 5,693.1 5,273.5 3,988.0 4,108.7
NOTES TO SELECTED CONSOLIDATED
FINANCIAL INFORMATION
(1) Net investment income and discontinued operations included $26.6 million,
$53.3 million, $114.3 million and $154.6 million for 1998, 1997, 1996 and
1995 respectively, recognized as investment income by continuing operations
and as interest expense by discontinued operations relating to intersegment
loans.
(2) Investment gains, net, included additions to asset valuation allowances and
writedowns of fixed maturities and, in 1997 and 1996 equity real estate,
for continuing operations totaling $291.4 million, $187.8 million, $483.8
million, $178.6 million and $197.6 million for 1999, 1998, 1997, 1996 and
1995, respectively. In 1997, additions to valuation allowances of $227.6
million were recorded related to the accelerated equity real estate sales
program and $132.3 million of writedowns on real estate held for production
of income were recorded. As a result of the implementation of SFAS No. 121,
1996 results include the release of valuation allowances of $152.4 million
on equity real estate and the recognition of impairment losses of $144.0
million on real estate held for production of income.
(3) The results of the Closed Block are reported on one line in the
consolidated statements of earnings. Total assets and total liabilities,
respectively, include the assets and liabilities of the Closed Block. See
Note 7 of Notes to Consolidated Financial Statements contained in Exhibit
99.1 attached hereto.
(4) In 1999, revisions to estimated future gross profits used to determine the
amortization of DAC for universal life and investment-type products
resulted in a writedown of DAC of $131.7 million. In 1996, AXA Financial
wrote off $145.0 million of unamortized DAC on disability income ("DI")
products and strengthened reserves by $248.0 million for the DI and Pension
Par lines of business. As a result, earnings from continuing operations
decreased by $255.5 million ($393.0 million pre-tax). See Note 2 of Notes
to Consolidated Financial Statements contained in Exhibit 99.1 attached
hereto.
(5) Total benefits and other deductions included Corporate interest expense of
$102.4 million, $104.2 million, $111.4 million, $122.8 million and $84.9
million for 1999, 1998, 1997, 1996 and 1995, respectively.
(6) Total benefits and other deductions included provisions associated with
exit and termination costs of $42.4 million, $24.4 million and $32.0
million for 1997, 1996 and 1995, respectively.
(7) In 1997, AXA Financial released $97.5 million of tax reserves related
to years prior to 1989.
(8) Operating results for the Investment Banking and Brokerage segment are
included in discontinued operations for 1999, 1998, 1997, 1996 and 1995,
respectively. See Note 8 of Notes to Consolidated Financial Statements
contained in Exhibit 99.1 attached hereto.
(9) Other discontinued operations, net of Federal income taxes included
additions to asset valuation allowances and writedowns of fixed maturities
and, in 1997 and 1996, equity real estate, which totaled $50.5 million,
$33.2 million, $212.5 million, $36.0 million and $38.2 million for 1999,
1998, 1997, 1996 and 1995, respectively. In 1997, additions to valuation
allowances of $79.8 million were recognized related to the accelerated
equity real estate sales program and $92.5 million of writedowns on real
estate held for production of income were recognized. The implementation of
SFAS No. 121 in 1996 resulted in the release of existing valuation
allowances of $71.9 million on equity real estate and recognition of
impairment losses of $69.8 million on real estate held for production of
income.
(10) During the 1999, 1998, 1997 and 1996 reviews of the allowance for future
losses for other discontinued operations, management released the allowance
in 1999 and 1998 and increased the allowance in 1997 and 1996. As a result,
net earnings increased by $28.1 million and $2.7 million and decreased by
$87.2 million and $83.8 million for 1999, 1998, 1997 and 1996,
respectively. Incurred (losses) gains of $(19.3) million, $50.3 million,
($154.4) million, ($23.7) million and ($25.1) million for the years ended
December 31, 1999, 1998, 1997, 1996 and 1995, respectively, were credited
(charged) to other discontinued operations allowance for future losses. See
Note 8 of Notes to Consolidated Financial Statements contained in Exhibit
99.1 attached hereto.
(11) Assets and liabilities relating to other discontinued operations are not
reflected on the consolidated balance sheets of AXA Financial, except that
the net amount due to continuing operations for intersegment loans made to
other discontinued operations in excess of continuing operations'
obligations to fund other discontinued operations' accumulated deficit is
reflected as "Amounts due from discontinued operations" in 1998, 1997, 1996
and 1995.