[ AXA LOGO ]
FINANCIAL
PROTECTION
PRESS RELEASE
FEBRUARY 28, 2006
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VERY STRONG FULL-YEAR 2005 PERFORMANCE:
UNDERLYING EARNINGS UP 24% TO EURO 3.3 BILLION
ADJUSTED EARNINGS UP 23% TO EURO 4.1 BILLION
LIFE NEW BUSINESS VALUE UP 27% TO EURO 1.1 BILLION
PROPOSED DIVIDEND OF EURO 0.88 PER SHARE UP 44% VERSUS 2004
TOTAL ASSETS UNDER MANAGEMENT REACHED EURO 1,064 BILLION
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"Last year, AXA showed strong growth momentum, particularly in Life & Savings
and Asset Management," said Henri de Castries, Chairman of the Management Board
of AXA. "Significant value has been created in 2005 for our shareholders, as
demonstrated by the record performance achieved this year.
"Our company-wide project Ambition 2012 was launched in 2005, establishing the
objective of becoming the preferred company in our industry through customer
satisfaction. We believe that we can achieve our 2012 goals by differentiating
ourselves through employee engagement, a superior product offering, and
excellent distribution. AXA's 2005 results show that we are off to a good start
in meeting these aspirational objectives."
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Note: All profit & loss and balance sheet numbers are under IFRS for 2004 and
2005. Non-GAAP (1) measures such as underlying earnings and adjusted earnings
are reconciled to net income on page 3 and defined in the notes.
All 2005 information coming from financial statements has been
audited by AXA's independent auditors.
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(1) 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 (under the fair
value option) and derivatives. Adjusted and underlying earnings are non-GAAP
measures and as such are not audited, may not be comparable to similarly titled
measures reported by other companies, and should be read together with our GAAP
measures. 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 provides useful and important information to
shareholders and investors as measures of AXA's financial performance.
- -------------------------------Be Life Confident--------------------------------
VERY STRONG FULL-YEAR 2005 PERFORMANCE
o PROFITABLE GROWTH(2)
- Life & Savings performed well across the Group, with total new business
premiums on an APE basis(3) up 11% and new business value increasing 27%
to Euro 1.1 billion.
- Property & Casualty revenues were up 3% to Euro 18.9 billion, and the
combined ratio improved by 0.8 points to 97.7%.
- Asset management revenues were up 14% to Euro 3.4 billion, with net
inflows at a historical high of Euro 56 billion(4).
- Total Assets under Management (including Group assets not managed by AXA
Investment Managers and AllianceBernstein) reached a record level of
Euro 1,064 billion.
o STRONG EARNINGS MOMENTUM
- Underlying earnings were up 24% to Euro 3.3 billion, reaching an all-time
high, with Life & Savings, Property & Casualty, and Asset Management
reporting above 20% growth for the year.
- Adjusted earnings reached a record Euro 4.1 billion, up 23%, with net
capital gains contributing less than 21% to total adjusted earnings.
We have raised our projection of the expected contribution of net capital
gains in 2006, barring any significant downturn in the equity market, to
Euro 0.6 billion - Euro 0.8 billion (from the previous range of Euro 0.4
billion - Euro 0.6 billion).
- Net income reached Euro 4.2 billion, up 12%. Strong adjusted earnings
growth was partially offset by lower profits on derivatives not eligible
for hedge accounting under IFRS.
o STRONG VALUE CREATION FOR OUR SHAREHOLDERS AND INCREASING FINANCIAL
FLEXIBILITY
- The proposed dividend of Euro 0.88 per share(5) represents a 44% increase
over last year and a 40% payout ratio on adjusted earnings. The total
amount to be distributed as dividends in 2006 is approximately Euro 1.6
billion.
- The dilution control program(6) and the AXA-Finaxa merger have resulted
in a capital reduction of Euro 1.2 billion since December 31, 2004.
- Post dilution control program and the AXA-Finaxa merger, year-end 2005
gearing stands at 38%, down 4 points versus year-end 2004.
- Return on Equity(7) based on adjusted earnings reached 18%.
- Life & Savings European Embedded Value ("EEV") reached Euro 29.5 billion,
with Total Return on Life & Savings EEV at 14%.
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(2) On activity indicators, percent changes between 2004 and 2005 are shown on a
constant scope and constant foreign exchange basis.
(3) Annual Premium Equivalent (APE) represents 100% of new business regular
premiums + 10% of new business single premiums, in line with EEV methodology.
APE is group share.
(4) Excluding the impact of change in scope at AllianceBernstein, mainly linked
to the sale of Alliance Capital Cash Management Services.
(5) To be proposed at the May 4, 2006 Shareholders' Meeting.
(6) Including Shareplan 2005.
(7) Return on Equity excludes Fair Value on invested assets.
- -------------------------------Be Life Confident------------------------------ 2
2005 RESULTS SUMMARY
IFRS FY05 FY04 CHANGE FY05 PER CHANGE
Euro million SHARE(a)
Except per share amounts REPORTED @ CST FX
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UNDERLYING EARNINGS 3,258 2,637 +24% +24% 1.72 +21%
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Net capital gains 850 705
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ADJUSTED EARNINGS 4,108 3,342 +23% +23% 2.16 +21%
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Profit or loss on financial assets 149 428
(under Fair Value option) and
derivatives
Exceptional operations -72 10
Goodwill & related intangibles -13 -41
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NET INCOME, GROUP SHARE 4,173 3,738 +12% +12% 2.19 +10%
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(a) Fully diluted. Weighted average number of fully diluted shares was 1,954m in
FY05 versus 1,934m in FY04. Since October 2005, AXA has started a program to
mitigate dilution arising from share-based compensation programs and on January
7, 2006, AXA shares received in connection with the Finaxa transaction were
cancelled.
UNDERLYING EARNINGS
2005 underlying earnings improved by 24% at current and constant exchange rates
to Euro 3,258 million, driven by all segments but International Insurance and
Holdings.
IFRS (Euro million) FY05 FY04 CHANGE CHANGE
@ CST FX
-------------------------------------------------------
Life & Savings 1,931 1,563 +24% +24%
Property & Casualty 1,346 1,102 +22% +22%
International Insurance 68 138 -51% -52%
Asset Management 396 300 +32% +33%
Other Financial Services & Holdings -483 -465 -- --
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TOTAL UNDERLYING EARNINGS 3,258 2,637 +24% +24%
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Note: For underlying earnings analysis below, percentage changes between 2004
and 2005 are presented at constant exchange rates.
- -------------------------------Be Life Confident------------------------------ 3
LIFE & SAVINGS underlying earnings increased by 24% to Euro 1,931 million. 2005
earnings benefited from a non-recurring effect of Euro 67 million(8) in Japan
and a full 12 months of earnings from MONY (Euro 150 million underlying earnings
for the year) versus six months in 2004. Excluding the Japan non-recurring
effect and at a constant scope, underlying earnings increased by 16%, primarily
attributable to increasing fees and revenues and technical margin, particularly
in the US, Japan and France.
Underlying investment margin was Euro 2,178 million, up 5%. This reflects the 12
months contribution of MONY in 2005 and higher equity revenues in the US and
France, which more than compensated for lower investment income in Japan,
Germany and Belgium. In Japan, the decrease in investment margin resulted from
higher currency hedging costs and the portfolio restructuring (shift from US
bonds into Japanese bonds) implemented in late 2004. Belgium's 2005 yield was
lower than in 2004 due to a non-recurring reserve release of Euro 23 million in
2004.
Fees & Revenues were Euro 5,157 million, up 15%. Excluding the positive effect
of MONY, fees & revenues were up 13%, driven by higher separate account average
balances resulting from both market appreciation and strong net inflows in
France and the US, and by strong overall sales of life products. The UK
benefited from the development of credit insurance business and Japan from
increased sales of protection products (life and health). In addition, mutual
fund revenues were up 28%, mainly driven by Australia and the US.
Net technical margin was Euro 1,199 million, up 44%. Excluding MONY, net
technical margin was up 34%, driven by better morbidity margin on health
products in Japan and better life mortality experience in the US and Japan, as
well as a Euro 67 million positive impact in the UK in 2005 versus a Euro 31
million reserve strengthening in 2004.
Globally, total gross margin (the sum of the above margins) was Euro 8,534
million, up 15%, with the full 12 months contribution of MONY (as opposed to
only six months in 2004) representing 3 points of this growth.
Expenses, tax and minority interests were Euro -6,604 million, up 13%, with the
additional six months of MONY representing 3 points of this growth. 2005 was
impacted by higher DAC amortization, particularly in the US, as well as higher
expenses in the UK related to sales and customer service strategic initiatives
and the development of the creditor business (offsetting the above-mentioned
increase in fees and revenues). Japan's expenses were positively impacted by the
non-recurring items mentioned above, with the Japan tax benefit improving the
overall Group tax rate by 5 points.
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(8) The net figure of Euro 67 million reflects, as described in 1H05, a positive
fiscal impact of Euro 220 million from the improvement in recoverability of tax
losses carried forward, which was partially offset by additional VBI and DAC
amortization due to a change in future investment assumptions (Euro -153
million).
- -------------------------------Be Life Confident------------------------------ 4
PROPERTY & CASUALTY underlying earnings were Euro 1,346 million, up 22%. A 0.8
point improvement in the combined ratio to 97.7% accounted for half of this
improvement, with the rest resulting from a volume effect and a higher
investment income supported by strong cash flows. The main contributors to the
P&C improvement were the UK & Ireland, Germany, France, Canada and the
Netherlands.
COMBINED RATIOS
------------------------------
Ratios in % FY 2005 CHANGE FROM
2004
------------------------------
France 97.9 -0.8
Germany 98.3 -0.5
UK & Ireland 96.3 -1.0
Belgium 98.7 +1.4
Southern Europe 99.1 -0.3
Other countries 96.3 -3.5
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TOTAL P&C 97.7 -0.8
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The loss ratio improved 2.1 points to 69.2%, driven primarily by the improvement
in the current year loss ratio (1.7 points).
Overall current year loss ratio benefited from: (i) a strong improvement of
claims ratios across the board; (ii) reduced claims handling costs due to a
change in cost allocation (transfer to expense) in Germany and Canada; and (iii)
process improvements in certain countries.
The all accident year loss ratio benefited from current year improvements and
positive loss reserve developments in nearly all regions.
The expense ratio increased 1.4 points to 28.5%. Expenses increased notably due
to: (i) a continued shift towards lower loss/higher commission business in the
UK; (ii) a non-recurring impact on deferred acquisition costs in France and
Germany; (iii) a change in cost allocation in Germany and Canada from claims
handling costs to expenses; and (iv) a non-recurring charge on agent pension
benefits in France. Excluding the items listed above, the expense ratio was flat
from 2004.
P&C performance was achieved while maintaining very strong reserves to premium
and reserves to claims ratios.
The net technical reserves to net earned premiums ratio was 193% (improving by 3
points on a comparable basis), while the net claims reserves to net claims paid
ratio was 273% (improving by 4 points on a comparable basis).
Investment income increased Euro 171 million to Euro 1,451 million, mainly
driven by a higher average asset base and higher dividends on equities.
- -------------------------------Be Life Confident------------------------------ 5
INTERNATIONAL INSURANCE underlying earnings were down 52% to Euro 68 million, as
current year major losses costs for AXA RE increased by Euro 316 million (net of
reinsurance and gross of tax).
AXA RE underlying earnings were down 89% to Euro 11 million, driven mainly by a
16.4 point deterioration of the loss ratio to 99.2%, partially offset by a 4.7
point improvement of the expense ratio to 13.3% following on-going cost control
and a favorable geographical mix of results positively impacting the overall tax
rate. Major losses recorded in 2005 represented 49.6 points of the loss ratio
versus 25.1 points in 2004. The negative impact of 2005 major losses was
mitigated by favorable development on prior year major loss reserves, as well as
by a strong life net technical result.
AXA Corporate Solutions Assurance underlying earnings were up 43% to Euro 72
million, mainly driven by stronger investment income, which benefited from the
reinvestment of positive cash flows.
ASSET MANAGEMENT underlying earnings were Euro 396 million, up 33%, benefiting
from higher average Assets Under Management (AUM), fuelled by very strong net
inflows of Euro 56 billion(9). Total AUM for Asset Management at the end of
December 2005 was Euro 923 billion, up 16% at constant exchange rates versus
December 31, 2004.
AllianceBernstein underlying earnings increased 18% to Euro 240 million, driven
by higher average AUM (+11%), a 2.9 point improvement in the underlying cost
income ratio, and a higher ownership interest by AXA (approximately 61%
throughout 2005 versus approximately 58% on average for 2004).
AXA Investment Managers underlying earnings increased 65% to Euro 156 million,
driven by a strong increase of revenues (+27%) supported by higher average AUM
(+21%). Assets under management benefited from strong net inflows, favorable
market appreciation, and the Framlington acquisition. At the same time, expenses
grew at a slower pace, resulting in a 2.9 point improvement of the operating
cost income ratio.
OTHER FINANCIAL SERVICES & HOLDINGS underlying earnings deteriorated by Euro 18
million to Euro -483 million, due primarily to a Euro 14 million settlement of a
US litigation. Positive contributors - a strong performance by AXA Bank Belgium,
boosted by an improved interest margin and a release of provision for risk of
Euro 16 million, and a favorable run-off development at Compagnie Financiere de
Paris (Euro 17 million) - were offset by increased expenses at AXA SA.
- --------------------
(9) Excluding the impact of change in scope at AllianceBernstein, mainly linked
to the sale of Alliance Capital Cash Management Services.
- -------------------------------Be Life Confident------------------------------ 6
ADJUSTED EARNINGS
2005 adjusted earnings, the basis for our dividend policy, were up 23% at
constant and current exchange rates to Euro 4,108 million, driven by the solid
underlying earnings performance as well as a Euro 145 million increase in net
capital gains attributable to shareholders to Euro 850 million.
2005 net capital gains attributable to shareholders benefited from (i) a Euro
115 million release of valuation allowance on tax losses carried forward in
Japan, (ii) net capital gains (Euro 211 million), mainly from the restructuring
of the AXA Japan investment portfolio, offset by changes in future investment
assumptions, and (iii) strong equity markets, especially in Europe.
NET INCOME, GROUP SHARE
2005 net income of Euro 4,173 million increased by 12% at constant and current
exchange rates, driven by the increase in adjusted earnings. Exceptional
operations amounted to Euro -72 million, mainly driven by the sale of Advest
(brokerage activity in the US), versus Euro 10 million in 2004. Profit on
financial assets (under Fair Value option) and derivatives decreased by Euro 279
million to Euro 149 million, as AXA SA recorded lower results in fair value of
derivatives. Goodwill and other related tangible impacts was Euro -13 million
versus Euro -41 million in 2004.
BALANCE SHEET
As of December 31, 2005, shareholders' equity was Euro 33.8 billion, up 19%
compared to December 31, 2004, primarily benefiting from 2005 earnings and
increased fair value of invested assets, partially offset by a Euro -1.2 billion
impact related to the merger with Finaxa and the repurchase program designed to
control dilution.
Fair value of invested assets recorded through shareholders' equity was Euro 8.2
billion, up Euro 2.4 billion versus December 31, 2004, on the back of strong
financial markets.
Total unrealized capital gains attributable to shareholders reached Euro 12.0
billion as of 12/31/05 of which
- Euro 8.2 billion of fair value of invested assets recorded through
shareholders' equity, as mentioned above,
- Euro 1.5 billion of unrealized capital gains on real estate and loans
(not recorded through shareholders' equity), versus Euro 1.1 billion on
December 31, 2004,
- Euro 2.3 billion of unrealized gain on AllianceBernstein investment (not
recorded through shareholders' equity), up Euro 1.3 billion from December
31, 2004.
The deleveraging of the balance sheet, in progress since year-end 2000,
accelerated in 2005. As of December 31, 2005, gearing stood at 38%, down from
42% as of December 31, 2004 despite a 6 point negative impact related to the
AXA-Finaxa merger and the dilution control program.
- -------------------------------Be Life Confident------------------------------ 7
HIGHLIGHTS OF LIFE & SAVINGS 2005 EUROPEAN EMBEDDED VALUE(10)
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Euro million - group share ANAV VIF EEV
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OPENING LIFE & SAVINGS EEV @ 12/31/04 11,331 14,295 25,627
Modeling changes & opening adjustments 58 144 202
ADJUSTED OPENING LIFE & SAVINGS EEV 11,389 14,439 25,829
Total Return on Life & Savings EEV 3,068 433 3,500
Capital Flows -1,291 0 -1,291
Exchange rate movement impact 403 1,049 1,452
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CLOSING LIFE & SAVINGS EEV @ 12/31/05 13,568 15,921 29,489
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CHANGE 20% 11% 15%
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TOTAL RETURN ON LIFE & SAVINGS EEV 14%
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2005 Life & Savings European Embedded Value (EEV), at Euro 29.5 billion, was up
15% (9% at constant exchange rates) from 2004 despite Euro 1.3 billion of
capital flows out of Life & Savings. Total Return on Life EEV, which excludes
the impacts of capital flows, modeling changes, and foreign exchange, was 14% in
2005.
LIFE & SAVINGS ANAV (ADJUSTED NET ASSET VALUE) growth of 20% (16% at constant
exchange rates) was driven by strong current year earnings and growth in
unrealized capital gains in most markets. The growth in unrealized capital gains
is largely due to strong equity market performance in most of the world outside
of the US, and also due to lower interest rates in many markets.
LIFE & SAVINGS VIF (VALUE OF IN-FORCE) growth of 11% (4% at constant exchange
rates) reflected new business VIF and expected return on inforce, offset by the
transfer of current year expected profit to ANAV and negative investment
experience. The investment experience reflected lower than expected investment
performance in the US, leading to smaller account balances on which to earn
future fees, and lower risk-free rates rates in many markets driving up the cost
of guarantees.
HIGHLIGHTS OF LIFE & SAVINGS 2005 NEW BUSINESS METRICS
Euro million, except when otherwise noted 2004 2005 CHANGE CHANGE ON
group share COMPARABLE
BASIS(11)
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Annual Premium Equivalent (APE) 4,807 5,476 14% 11%
Present Value of Expected Premiums (PVEP) 42,228 47,973 14% 11%
New Business Value (NBV) 895 1,138 27% 27%
NBV/APE 18.6% 20.8% +2.2 PTS +2.8 PTS
NBV/PVEP 2.1% 2.4% +0.3 PT +0.3 PT
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(10) Compliant with CFO Forum principles.
(11) Constant exchange rates and scope (MONY 1H05).
- -------------------------------Be Life Confident------------------------------ 8
LIFE & SAVINGS NBV increased by 27% on a comparable basis to Euro 1,138 million,
reflecting continued improvements in mix and margins, which have served to
increase value at a faster rate than volume. All countries contributed to the
strong NBV growth except Southern Europe, which was flat as volume increase was
offset by an unfavorable product mix shift, and Germany, which experienced a
decline following the strong boom in 2004 in connection with the tax reform
effective beginning of 2005.
ROLLFORWARD OF LIFE & SAVINGS NBV (Euro million, group share)
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2004 LIFE & SAVINGS NBV 895
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Modeling changes & opening adjustments 4
Change in scope (MONY 1H05) 10
Business-driven evolution: 236
Volume, mix and expenses 235
Assumptions changes, yield curves, and other 2
Currency impact -7
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2005 LIFE & SAVINGS NBV 1,138
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OUTLOOK
The solid revenue growth and very strong earnings growth of 2005 mark the first
milestones on AXA's path towards reaching its Ambition 2012 objective of
becoming the preferred company in its industry.
Management believes that the Group should benefit from this positive momentum in
2006:
- The combination of higher assets under management and the ongoing
favorable trend for higher margin unit-linked products should underpin
Life and Savings and Asset Management underlying earnings growth;
- In Property and Casualty - barring any major catastrophes - AXA's
geographic diversification and price discipline lead management to
believe in a stabilization of loss ratios, despite a slightly less
favorable underwriting environment;
- In International Insurance, a return to a more normalized claims
environment would contribute to improved earnings.
Barring a significant downturn in the equity markets, net capital gains should
contribute Euro 600 to 800 million to adjusted earnings in 2006.
- -------------------------------Be Life Confident------------------------------ 9
INFORMATION ABOUT THE FULL YEAR EARNINGS PRESENTATIONS
Members of AXA's senior management will discuss these results at conferences in:
o PARIS, FEBRUARY 28, 2006
The conference will be accessible through a live Webcast and a conference
call. The Webcast will begin at 2.00 pm in Paris (8.00 am in New York, 1.00
pm in London). A slide presentation will accompany the event. Go to
WWW.AXA.COM 10-15 minutes prior to the event to join the Web cast or to
obtain investor material.
The conference call access numbers are + 44 (0) 207 162 0025 for the UK and
+ 1 334 323 6201 for the US
Replay will be available on the following day only. Numbers are
+44.207.031.4064 for the UK, +33.1.70.99.35.29 for France and
+1.954.334.0342 for the U.S. Access code: 694187
o LONDON, MARCH 1, 2006
The conference will be accessible through a conference call in listen-only
mode. The conference will begin at 9.00 am in London (10.00 am in Paris).
The access number is +44 (0) 207 162 0025
Replay will be available on the following day only. Numbers are
+44.207.031.4064 for UK, +33.1.70.99.35.29 for France and +1.954.334.0342
for the U.S. Access code: 694195
ABOUT AXA
AXA Group is a worldwide leader in Financial Protection. AXA's operations are
diverse geographically, with major operations in Western Europe, North America
and the Asia/Pacific area. AXA had Euro 1,064 billion in assets under management
as of December 31, 2005. For full year 2005, IFRS revenues amounted to Euro 72
billion and IFRS underlying earnings amounted to Euro 3,258 million.
The AXA ordinary share is listed and trades under the symbol AXA on the Paris
Stock Exchange. The AXA American Depository Share is also listed on the NYSE
under the ticker symbol AXA.
* *
*
This press release is available on the AXA Group web site: www.axa.com
AXA INVESTOR RELATIONS: AXA MEDIA RELATIONS:
- ---------------------- -------------------
Matthieu Andre: +33.1.40.75.46.85 Christophe Dufraux: +33.1.40.75.46.74
Etienne Bouas-Laurent: +33.1.40.75.46.85 Clara Rodrigo: +33.1.40.75.47.22
Caroline Portel: +33.1.40.75.49.84 Mary Taylor: +1.212.314.5845
Sophie Bourlanges: +33.1.40.75.56.07
Emmanuel Touzeau: +33.1.40.75.49.05
Kevin Molloy: +1.212.314.2893
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 predictions of or indicate future
events, trends, plans or objectives (including statements herein with respect to
AXA's Ambition 2012 project and the objectives, financial and other, associated
with that project). Undue reliance should not be placed on such statements
because, by their nature, they are subject to known and unknown risks and
uncertainties and can be affected by numerous factors that could cause actual
results and AXA's plans and objectives to differ materially from those expressed
or implied in the forward looking statements (or from past results). These risks
and uncertainties include, without limitation, the risk of future catastrophic
events (including possible future weather-related catastrophic events and/or
terrorist related incidents), economic and market developments, legislative
developments, regulatory actions or investigations, as well as litigations and
/or types of other proceedings. Please refer to AXA's Annual Report on Form 20-F
and Document de Reference and for the year ended December 31, 2004, for a
description of certain important factors, risks and uncertainties that may
affect AXA's business. 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.
- ------------------------------Be Life Confident------------------------------ 10
APPENDIX 1 - UNDERLYING EARNINGS
IFRS RESULTS (Euro million) FY 2005 FY 2004 CHANGE CHANGE AT CONSTANT
EXCHANGE RATES
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TOTAL UNDERLYING EARNINGS 3,258 2,637 + 24% + 24%
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LIFE & SAVINGS 1,931 1,563 + 24% +24%
United States 866 664 + 30% + 30%
France 387 350 + 11% + 11%
United Kingdom 85 86 - 2% - 1%
Japan 266 145 + 83% + 88%
Germany 30 13 + 126% + 126%
Belgium 56 74 - 24% - 24%
Southern Europe 44 41 + 6% + 6%
Other Countries 198 188 + 5% + 4%
of which Australia / New Zealand 64 50 + 27% + 22%
of which Hong Kong 84 60 + 39% + 39%
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PROPERTY & CASUALTY 1,346 1,102 + 22% + 22%
France 363 304 + 19% + 19%
Germany 178 120 + 48% + 48%
United Kingdom & Ireland 399 302 + 32% + 33%
Southern Europe 125 114 + 9% + 9%
Belgium 128 159 - 19% - 19%
Other Countries 153 102 + 50% + 44%
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INTERNATIONAL INSURANCE 68 138 - 51% - 52%
AXA RE 11 96 - 89% - 89%
AXA Corporate Solutions Assurance 72 50 + 44% + 43%
Other International -14 -7 -- --
- ------------------------------------------------------------------------------------------------------------------
ASSET MANAGEMENT 396 300 + 32% +33%
AllianceBernstein 240 204 + 17% + 18%
AXA Investment Managers 156 95 + 64% + 65%
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OTHER FINANCIAL SERVICES 67 23 + 186% + 186%
- ------------------------------------------------------------------------------------------------------------------
HOLDING COMPANIES (549) (489) -- --
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------Be Life Confident------------------------------ 11
APPENDIX 2 - EARNINGS SUMMARY AFTER TAXES AND MINORITY INTERESTS -
Full-year 2005
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CONSOLIDATED EARNINGS NET INCOME GOODWILL AND EXCEPTIONAL PROFIT OR LOSS
(IN EURO MILLION) GROUP SHARE RELATED OPERATIONS AND (EXCLUDING CHANGE) ON
INTANGIBLES DISCONTINUED FINANCIAL ASSETS (UNDER
OPERATIONS FAIR VALUE OPTION)
& DERIVATIVES
----------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD PERIOD PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
31, 2005 31, 2004 31, 2005 31, 2004 31, 2005 31, 2004 31, 2005 31, 2004
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LIFE & SAVINGS 2,404 1,826 (8) (5) (0) (153) 50 77
France 630 534 -- -- -- -- 90 79
United States 872 577 (8) (5) -- (146) 9 14
United Kingdom 44 (27) -- -- -- -- (54) (26)
Japan 392 274 -- -- -- -- 6 (18)
Germany 36 (3) -- -- (0) (10) 4 4
Belgium 131 191 -- -- -- -- (11) 19
Southern Europe 57 50 -- -- -- -- 3 2
Other countries 242 230 -- -- -- 3 3 2
of which Australia/New Zealand 69 50 -- -- -- -- 2 (2)
of which Hong Kong 93 66 -- -- -- -- -- --
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PROPERTY & CASUALTY 1,737 1,439 (1) (30) -- 12 85 83
France 464 407 -- -- -- -- 45 26
Germany 295 163 -- 5 -- -- 37 34
Belgium 183 228 -- (1) -- -- 1 14
United Kingdom & Ireland 464 372 -- -- -- 12 -- --
Southern Europe 153 185 -- -- -- -- 1 8
Other countries 179 83 (1) (34) -- -- 0 --
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INTERNATIONAL INSURANCE 184 244 0 (7) 23 -- (1) 25
AXA RE 67 126 -- (7) -- -- 3 22
AXA Corporate Solutions Assurance 97 97 -- -- -- -- (5) 1
Other 20 20 0 (0) 23 -- 1 2
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ASSET MANAGEMENT 411 304 (4) -- 3 -- 11 2
AllianceBernstein 254 207 -- -- 8 -- -- --
AXA Investment Managers 156 97 (4) -- (5) -- 11 2
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OTHER FINANCIAL SERVICES 82 13 -- -- 2 -- 8 (11)
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HOLDINGS (645) (88) -- -- (99) 150 (4) 251
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TOTAL 4,173 3,738 (13) (41) (72) 10 149 428
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- ------------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED EARNINGS NET REALIZED
(IN EURO MILLION) CAPITAL GAINS
ADJUSTED EARNINGS ATTRIBUTABLE UNDERLYING UNDERLYING
TO EARNINGS EARNINGS
SHAREHOLDERS
----------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED CHANGE CHANGE AT
DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER CONSTANT FX
31, 2005 31, 2004 31, 2005 31, 2004 31, 2005 31, 2004
- ------------------------------------------------------------------------------------------------------------------------------------
LIFE & SAVINGS 2,362 1,907 432 344 1,931 1,563 24% 24%
France 540 455 154 105 387 350 10% 10%
United States 871 713 5 49 866 664 30% 31%
United Kingdom 98 (2) 14 (88) 85 86 -2% -1%
Japan 385 292 120 146 266 145 83% 88%
Germany 32 3 2 (10) 30 13 126% 126%
Belgium 141 173 85 99 56 74 -24% -24%
Southern Europe 54 48 10 7 44 41 6% 6%
Other countries 240 225 42 36 198 188 5% 4%
of which Australia/New Zealand 66 52 3 2 64 50 27% 22%
of which Hong Kong 93 66 9 5 84 60 39% 39%
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PROPERTY & CASUALTY 1,653 1,374 307 272 1,346 1,102 22% 22%
France 419 381 57 77 363 304 19% 19%
Germany 258 124 80 4 178 120 48% 48%
Belgium 181 215 53 56 128 159 -19% -19%
United Kingdom & Ireland 464 359 64 57 399 302 32% 33%
Southern Europe 152 177 27 62 125 114 9% 9%
Other countries 179 118 26 16 153 102 50% 44%
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INTERNATIONAL INSURANCE 162 226 94 87 68 138 -51% -52%
AXA RE 64 111 53 16 11 96 -89% -89%
AXA Corporate Solutions Assurance 102 96 30 46 72 50 44% 43%
Other (4) 18 11 25 (14) (7) 0% 0%
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ASSET MANAGEMENT 402 302 5 2 396 300 32% 33%
AllianceBernstein 246 207 6 2 240 204 17% 18%
AXA Investment Managers 156 95 (1) -- 156 95 64% 65%
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OTHER FINANCIAL SERVICES 72 23 6 0 67 23 186% 186%
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HOLDINGS (543) (489) 6 (1) (549) (489)
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TOTAL 4,108 3,342 850 705 3,258 2,637 24% 24%
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- ------------------------------Be Life Confident------------------------------ 12