2000 Activity Report
World Leader in Financial Protection and Wealth Management Corporate Profile
• 50 million clients • 140,000 men and women worldwide
• € 80 billion in revenues
• € 900 billion in assets under management
• € 2.5 billion in net cash earnings*
• € 6.38 fully diluted net cash earnings per share* • ROE: 13.7%* • Market capitalization: € 64 billion
* AXA’s consolidated net earnings before goodwill, excluding non-recurring events. Contents
The AXA Group ...... 2 A Word from the President and the Chairman . . . . . 4
Operating Priorities: 2001-2003 ...... 6
AXA and its Clients ...... 7
AXA and its Distributors ...... 10
AXA and its People ...... 12
AXA and its Shareholders ...... 15
AXA as Corporate Citizen ...... 18
Operations ...... 20 Corporate Governance/Organization ...... 22
Operating Highlights ...... 24
Financial Highlights ...... 26
AXA in the World ...... 30
Insurance ...... 31
International Insurance ...... 52
Asset Management ...... 55
Consolidated Statement of Income ...... 59
Consolidated Balance Sheet ...... 60
Other Information ...... 62 Simplified organization chart ...... 64
Addresses ...... 66
12
9 3
6 No matter what time it is in my life, ‘‘ AXA has a solution.’’ 1 The AXA
JohanneJohanne etand David David 1:38 p.m. Paris For me, what counts is forging a long-lasting partnership‘‘ with my financial advisor, a relationship based on mutual trust.’’
2 The AXA Group Operations
Operating Highlights
Financial Group Highlights Insurance
International Insurance
Asset Management
Results
Other Information
3 A Word from the President and the Chairman
Today, our ambition is to set the worldwide standard in financial protection and wealth management. This does not mean we have decided to change our core business: it means we have decided to transform the way we operate in the interest of offering our clients – individuals and businesses alike – the support they need at every critical stage in their lives or development. Claude Bébéar Henri de Castries Chairman of President of To achieve this ambition, AXA has a number the Supervisory Board the Management Board of core strengths: 50 million clients worldwide; a captive distribution force comprised of 44,000 professionals; Building our Future a global brand; and a unique blend of skills in areas as diverse as AXA today is the result of a series of insurance underwriting, long-term investment, ambitious objectives that have been reached and financial advice. and then surpassed, motivating employees and providing a sense of direction. For a While these strengths are undoubtedly number of years, these objectives primarily necessary, they are not sufficient to guarantee concerned the size of the AXA Group: success. Achieving our vision also requires become a significant and then a key player focusing on the needs of our three key in the French market; establish a position stakeholders: our clients, our employees and in the global market, first by acquiring an our shareholders. In order to satisfy their operating presence in the United States and requirements, we felt it was necessary then by becoming one of the world’s principal to instigate a genuine cultural revolution insurance groups. Along the way, AXA has also everywhere we do business. We have moved enlarged its business scope, becoming one beyond the stage of adapting our business of the world’s premier asset management processes and practices to keep pace with specialists. market forces, and are now ready to begin transforming them.
4 Our Clients employees who like what they do, and an The AXA Individuals, small- and medium-sized organization in which they can take pride. Group For our distribution channels, this means businesses, institutional investors, and major Operations corporations: they are all AXA clients. Our aim is supplying products they can stand behind, to be recognized by each of them as one of and the training they need to offer sound Operating Highlights their best partners in terms of care, support and and objective advice to our customers. efficiency. Their situations are radically different, Financial Our Shareholders Highlights and so are their needs and aims. Consequently, we must increase our knowledge of each type of Shareholders are satisfied when the value Insurance customer and of each customer, and anticipate of their investment increases, which can be International their evolving needs. measured by stock price growth. We will Insurance achieve ongoing stock price appreciation Our ultimate objective is to operationalize the Asset by generating steady earnings growth, promise of financial protection and wealth Management increasing embedded value and management that is implicit in the AXA brand: Results demonstrating our ability to make timely for individuals: offer protection against a broad acquisitions and build successful partnerships. spectrum of risks and support at critical moments Other Our success will be uncontested when Information for businesses: offer the capacity required to AXA’s market capitalization places it among deal with business related contingencies. the very top financial services organizations. Our Employees and Distributors In 2000, we turned to the financial markets In a service industry, the value of a business in connection with key strategic transactions. turns on the quality and enthusiasm of its This means we have more reason than ever to fully satisfy the requirements of those who employees and distributors. An organization that have invested in our future. operates in the world’s major markets needs a The process of globalization continues strong corporate culture and a set of core values and, with it, a series of mergers and shared by all. AXA’s core values are: acquisitions that transcend national borders. Courage, in words and actions The technology revolution is an opportunity Loyalty to all our partners for service organizations to make Team spirit, which fosters high performance, unprecedented strides in productivity and both individually and collectively efficiency in less time than ever. We occupy Pride in our profession, which enables people a pivotal place in this radical transformation to take risks and drives economic growth of the world’s economies. It is up to us to put our strengths to work for the stakeholders – the Ambition to be among those who get clients, employees and shareholders alike – things done in the general interest who have placed their trust and hope in us. the Imagination to anticipate changes in the world around us the Pragmatism to grasp situations as they are and react positively and effectively Commitment to being at the service of our key stakeholders: customers, employees, shareholders. Wherever we do business, our aim is to be recognized as an outstanding organization Claude Bébéar Henri de Castries to work for, an organization with enthusiastic Chairman of the Supervisory Board President of the Management Board
5 Operating priorities: 2001-2003
To implement its vision, AXA has identified Manufacturing: three business strategies: a more focused Optimize and standardize core skills and geographic spread keyed to a “leadership or processes such as underwriting, claims exit” approach; an opportunistic acquisition handling, and procurement practices to policy; and ongoing improvements in reduce expenses and improve loss ratios. operating performance. The latter point, Consolidate and leverage IT platforms and which is critical to AXA’s success in reaching development Group-wide to improve service its targets, is detailed in a three-year rolling levels and lower unit costs. plan. Employees: Clients: Attract, train, challenge and retain qualified Operationalize the financial protection and people to fill critical gaps. wealth management promise of the AXA brand. Define and implement Group recruitment, Deliver on the promise by offering financial evaluation, compensation, promotion and advice backed by an enlarged range of mobility policies to achieve leadership in financial services and products that includes each local market. AXA’s aim is to be among AXA products and third-party “best-of-breed” the most attractive global financial services products. companies to work for by 2005, in all its local Enhance service quality and client markets. satisfaction, as measured by the number of clients, retention rates and the number Shareholders: of products held per client. Increase cash EPS by at least 15% a year on Develop customer relationship management average. tools that will enable AXA to tailor its product Grow embedded value by at least 10% and service offering to client needs. annually. Achieve cash ROE of 15%. Distribution: Train and upgrade existing distribution Improve the operating performance capability while seeking additional third-party of property and casualty units by lowering distribution channels such as retail banks. the Group combined ratio to 104%. Implement “open architecture” when it is a source of competitive advantage by offering other manufacturers’ products through AXA’s proprietary channels and making AXA products available to third-party distributors.
6 The AXA AXA and its Clients Group Operations
Operating Clients are the raison d’être of any business organization. Highlights The value of a product or service, no matter how well designed Financial Highlights or well executed, lies in its ability to respond to a genuine need, as measured by the number of customers that select and Insurance purchase it. Increasingly well-informed and therefore demanding International customers have fuelled competitive pressures, forcing companies Insurance Asset to constantly diversify and enlarge their offering to stay alive. Management In concrete terms, what does putting the client at the heart Results of the organization mean for AXA? Other Information Care, support, efficiency First of all, identify needs and expectations. Many Group subsidiaries have conducted Kazuya Sato, 32 surveys aimed at doing just that. Two major findings have emerged from these surveys: first, customers have similar needs and expectations around the world, whether they are North American, European or Asian. These needs and expectations can be summed up in three words – care, support, efficiency – which have become the hallmark of the Group’s strategy and that of its subsidiaries. To fully respond to client needs, and to deliver consistently high quality service that makes the difference, AXA must change 4:20 p.m. employee attitudes and behaviors, innovate Tokyo and reorganize. This imperative can take many forms: “Instead of pushing products, My family, my job, my money… we have to become advisors who can offer I want to know that my insurer cares solutions that take individual customer needs ‘‘ into account in terms of insurance, retirement, about my interests. Otherwise, how can he personal protection, healthcare and offer me personalized advice? investments.” “We have to change our conception of our business.” “We have to make ’’ the transition from administering contracts to managing long-term global relationships with clients that extend over their lifetime.”
7 questionnaire. The resulting plan was then presented to all employees (70 information Focusing Employees sessions were held) for feedback, and the plan on the Customer was revised to reflect their concerns. The Increasing employee accountability and official launch of the plan was both festive buy-in are critical drivers of successful change and well publicized. In March 2000, 35,000 management. The transformation under way people (AXA employees, partners and clients) at AXA encompasses all business operations discovered the AXA Portugal Vision and and every employee. To ensure that change mission statement: putting the company’s translates into new attitudes and a genuine professionalism, values and ability to innovate commitment to putting customers first, to work for every family in Portugal. employees have been closely involved every step of the way, from design to implementation, Imagining in changes that impact processes, tools and the right solutions products. Why innovate? Because patent protection is AXA Seguros in Portugal offers one case in not available for financial protection and point. Its employees participated actively in wealth management products, services and the development of the subsidiary’s strategic expertise. Any product or service can be business plan by completing a detailed reproduced and even enhanced in the process. Consequently, a financial services organization can only stand apart from its When you head a small business, competitors by being better at understanding, adapting to and anticipating client needs it‘‘ is reassuring to have a single representative, through constant innovation. To encourage someone who can take care of all the needs invention and creativity, AXA launched the Customer Innovation Awards program in of the company. In an emergency, 1999 and repeated the operation in 2000. he can handle major questions right away. The 14 projects elected since the program was initiated illustrate the ability of AXA employees to work together to find original Trevor, 36 ’’ solutions that are perfectly adapted to the changing needs of today’s clients. In the United States, AXA Financial marshaled the support of many internal experts – auditors, actuaries, IT professionals and others – to develop a customer profitability measurement tool that establishes highly detailed customer profiles. The profiles enable the company to divide its portfolio of clients into strategic segments. In addition to enabling more targeted product development and marketing initiatives, the customer profitability 10:30 a.m. measurement tool fosters the development of a London more personalized relationship with customers who have high future profitability potential.
8 Improving service delivery The AXA Customer perception of service quality is Group In France, AXA’s insurance and assistance conditioned on the organization’s ability to Operations units are reorganizing with the aim of offering design and implement rapid and efficient their clients a more extensive range of advice, management processes. Operating Highlights products and services that together comprise From an organization centered on products global financial protection and wealth and sales channels, AXA is transforming itself Financial Highlights management. Customers can choose from into one whose underwriting processes and among insurance, assistance, health care and management chains are built around evolving Insurance savings products, building the combination that client needs, expectations and lifestyles. Several International best suits their particular needs. major reorganizations illustrate this major Insurance In Germany, AXA Colonia has strengthened change in thinking. Asset the lines of communication with its clients via In Spain, the AXA Seguros strategy has Management a program aimed at achieving customer been transcribed into a tagline – el cliente por Results retention through early recognition of contract principio – and tangible service commitments cancellations. Once such customers have been to policyholders that include answering their Other Information identified, they are personally contacted by an tax questions within 48 hours free of charge, agent, who offers products and services that providing roadside assistance within an hour, better meet their needs. and soliciting customer input on product development. Making it easy for clients In a similar approach, AXA Nordstern to do business with AXA Colonia (Austria) offers its most loyal customers In order to get closer to its clients and offer a full range of supplementary services, them consistently high service regardless of including stepped-up claims settlement, the point of entry they prefer, AXA has bonuses, and free driving lessons. undertaken to diversify and multiply its distribution channels. The aim is to enable These innovations and reorganizations, clients to contact AXA by whatever means coupled with the involvement of AXA’s suits them – in person, over the Internet, by employees and partners, are concrete phone – and via the intermediary of their manifestations of our "client orientation," choosing – broker, agent, financial advisor, which is gradually becoming the core dedicated point of sale, bank branch or partner attribute of the global AXA brand. They are network. In parallel, AXA is harmonizing its also inseparable from our goal of becoming range of products and services, launching the industry’s benchmark in terms of financial new products, and selecting the best products protection and wealth management. But manufactured by others. The aim is to offer neither AXA’s size nor its financial strength is all clients, regardless of the point of entry sufficient to build a brand that means they choose, to find a uniform offering and satisfaction in the eyes of customers. The consistently high quality service delivery. strength of the AXA brand promise depends ultimately on the quality of our products, our advice and our service delivery. They comprise the brand content that will keep our current customers loyal and help attract and retain new ones.
9 AXA and its Distributors
Distribution channels play a key role in AXA’s ability to deliver on its customer commitments. Distributors meet with customers, listen to and help formulate their needs, offer objective advice and recommend suitable products.
Professionals who know how to listen… Building solid customer relationships begins with distribution professionals, who inform …who are highly clients of legislative and regulatory changes skilled…. that may have an impact on their financial In Spain, AXA Seguros recently started a situation and offer support in the event of Financial Club for its agents and brokers with a loss. A trained and attentive ear, a timely significant life insurance business, designed response, detailed and clear answers to to increase their financial services expertise. their questions – particularly when difficulties Once they have been admitted to the club, arise – these critical factors determine the agent and brokers are entitled to three types perception clients have of the AXA Group. of special training, with the highest level Customers evaluate the strength of AXA’s leading to financial planning and wealth commitment on the basis of how they are management accreditation. Planning and treated by those working in the field. sales support tools and information are also made available to club members. To enhance the ability of its distribution In the US, AXA Financial is rolling out its professionals to fulfill their mission, AXA has 1998 Texas Pilot to all its AXA Advisors sales developed a two-tiered strategy that involves associates, with the aim of transforming them upgrading skills and making available the into certified financial planning professionals. automated tools required to improve sales More than 4,000 have already obtained productivity and customer availability. certification and are accredited to sell stocks and bonds. AXA Canada has developed a turnkey training and information program for its property and casualty insurance brokers. Thanks to these tools, brokers are now able to offer investment products and services as well
10 as their range of non-life coverage. Clients The AXA seeking an easier and faster way to acquire Group financial protection and wealth management Operations services now have access to a fully qualified professional who can handle all their needs. Operating Highlights
Financial At the same time, AXA is exploring Highlights alternative third-party distribution channels in response to customer preference for open Insurance architecture, which allows AXA distributors to International sell products manufactured by others and Insurance non-proprietary channels to include AXA Asset branded products in their offering. After Management proving successful in the United States, the Results open architecture model is being extended to European subsidiaries. Other Information …and more available to service customer needs AXA is also developing life and property and casualty contract management and sales 3:00 p.m. hubs – service centers, call centers, Chicago communication centers, etc. – to handle time- consuming administrative tasks, thereby increasing sales productivity and lowering administrative costs. New-technology based tools are also contributing to higher productivity by facilitating the sales process, providing real-time access to new products and services, and enabling online transactions. The ultimate aim of these initiatives is to deliver better service to customers.
Brenda, 35
What matters to me is having a financial advisor‘‘ who knows me, whom I trust, and who offers me the investment products that best meet my needs.’’
11 AXA and its People
In addition to clients and shareholders, AXA considers its employees as one of its key stakeholders, and believes that its success hinges largely on staff motivation and involvement. AXA’s human resources policy has a twofold aim: to identify and rapidly address the major sources of employee dissatisfaction; and to promote the sharing of innovation and knowledge to fully leverage employee skills and expertise for the benefit of the entire organization.
Consulting employees… …and sharing the fruits How do AXA employees perceive their of successful performance working environment? To find out, AXA By actively promoting employee conducts an employee attitude survey every shareholding, AXA seeks to increase employee two years. In 2000, the Scope survey was motivation and affiliation. For the past six conducted electronically, via the Internet or years, AXA has offered its employees the the Intranet, for the first time. The response opportunity to invest in AXA and share in the rate was 67.8%, an improvement over 1998 rewards of Group performance. Some 127 (59.8%). The 2000 Scope survey revealed a subsidiaries in 37 countries elected to more motivated workforce and improvement participate in the program in 2000, which in staff morale, support in the workplace, offered an investment leverage option for the team spirit and management skills. The major first time. The number of employees investing sources of dissatisfaction included the difficulty in AXA increased by 48% over 1999, and the of adjusting to change in the workplace – amount invested rose by 111%. France and despite the fact that employees understand the United Kingdom provided the highest the underlying reasons – the feeling that a investment totals. At year-end, one employee gulf exists between senior executives and out of three – compared with one out of five other employees, and a perceived mismatch a year earlier – was an AXA shareholder. The between recognition and reward, on the one employee stock ownership program will be hand, and workload. On the basis of Scope offered again in 2001. survey results, action plans are drawn up to address areas of concern, followed by upgrades in existing tools or the development of new ones.
12 enhance their professional skills. By mapping The AXA its professional families, AXA will acquire more Group precise knowledge of its human resources, Operations Promoting synergies and will be able to successfully leverage and best practices… cultural differences and anticipate changes Operating Highlights AXA has opted for a highly decentralized in its various businesses. The year 2000 was organizational structure that respects cultural devoted to identifying the major professional Financial Highlights diversity and leads to a better understanding communities of practice within AXA, defining of client needs. In parallel, to fully leverage priority skill communities, and setting up task Insurance the Group’s size, synergy groups have been forces. In addition, an extensive private IT International set up by professional community of practice, network has been developed to encourage Insurance ensuring that best practices are shared and the sharing of knowledge and best practices. Asset that global standards are applied where Management appropriate. …through Results To improve the efficacy of these synergy the development of groups, AXA launched a project in 2000 the Intranet… Other aimed at mapping its "professional families," By the end of 2000, 37 subsidiaries were Information communities of practice that bring together connected to the AXA Intranet, and several employees from different business units who community of practice or synergy Web sites exercise the same profession. The aim of this had been redeveloped or created. The quality project is to facilitate the pooling and of these sites and related databases, which circulation of knowledge and best practices, enable AXA employees from around the and to enable employees to broaden and world to meet and exchange ideas, has been recognized beyond the organization. In 2000, AXA was the co-recipient of the award for the best Corporate Intranet site given out by the AFUU (Association française des utilisateurs ANALYSIS OF WORKFORCE BY GEOGRAPHIC AREA d'Unix et des systèmes ouverts – French Association of Unix and Open Systems Users). The panel of judges based its decision on the impact the corporate Intranet had made on 17% Asia Pacific company management. Related accomplishments in 2000 include 68% Europe the creation of a private site that automatically (and Africa) processes forms used in the 360-degree feedback process, which allows peers and colleagues to participate in the assessment of individual management style and practices. 15% Americas
Total: 95,422
13 AXA Université has been using 360-degree ANALYSIS OF WORKFORCE BY ACTIVITY feedback for several years in connection with
two of its management programs: 5% AXA Manager, a program designed to help International Insurance 86% managers around the world establish a Insurance personal plan for improving their managerial 9% Asset Management practices. and Other Financial Services Columbus, a program designed to help managers become effective drivers of change. 360-degree feedback is becoming increasingly popular with HR departments throughout AXA. It can enhance the annual performance appraisal by helping managers measure and improve their managerial skills. A new Intranet Web tool, which has been Total: 95,422 up and running since January 1, 2001, enables the HR departments of AXA Group subsidiaries to initiate the use of 360-degree feedback within their organization. They can Three themes dominated the special also consult consolidated Group-level data to Columbus seminars designed to support obtain general competency levels. the implementation of new practices in a decentralized context: reforming a distribution …and new tools channel, developing a group insurance Group-level training programs have also network, and forming empowered teams benefited from advances in new technologies. with greater accountability. The projects that receive AXA Customer The electronic revolution has also has Innovation Awards serve as the basis of the an impact on Telemaque, the AXA training special innovation seminars offered in program for high fliers. For the class of 1999, connection with the Columbus change which presented the findings of consulting management program. In 2000, discussion assignments carried out at the request of six focused on the world of opportunities AXA subsidiaries, e-commerce was the opened up by the Internet: building strong dominant theme. customer relationships, developing partnerships with independent distributors, and transmitting the information employees need to be effective.
14 The AXA AXA and Group Operations
Operating its Shareholders Highlights Financial Highlights By placing their trust in AXA’s ability to compete effectively and achieve steady improvements in operating performance, Insurance shareholders take part in AXA’s long-term strategic goals and success. International Insurance
Asset Management AXA stock performance: The AXA stock price rose by 13% in 2000, Results up 13% outperforming the CAC 40 but under- The investment markets were extremely performing the DJ Stoxx Insurance index by Other Information volatile throughout most of 2000, with the 4.6%. The DJ Stoxx Insurance index Dow Jones Industrial Average, the S&P 500 performance was driven by stock price gains Index and the Dow Jones Stoxx 50 down 6%, from German insurers as a result of domestic 10% and 4%, respectively, on the year. The tax reform measures. AXA undertook a CAC 40 ended the year down 32 points number of major transactions over the year, (- 0.5%) from its record level of 5,958 points including the completion of its acquisition of at year-end 1999. After beginning the year Japanese life insurer Nippon Dantai; the strongly, technology, media and buyout of Sun Life & Provincial Holdings (since telecommunications stocks were among the renamed AXA UK) minority interests and AXA biggest losers in 2000, while the traditionally Financial minority interests; the sale of defensive sectors – agribusiness (+ 25%), investment bank Donaldson, Lufkin & pharmaceuticals (+ 24%) and insurance Jenrette; and the acquisition of the US-based (+18%) – were among the biggest winners. value asset manager Sanford C. Bernstein.
AVERAGE MONTHLY STOCK PRICE since December 31, 1999
130 AXA 125 STOXX Insurance STOXX 50 120 115 110 105 100 95 90 85 80
12/31/99 01/31/00 02/29/00 03/31/00 04/30/00 05/31/00 06/30/00 07/31/00 08/31/00 09/30/00 10/31/00 11/30/00 12/31/00 01/31/01 02/28/01
Stock price on December 31, 1999: € 136.3 Stock price on March 14, 2001: € 127.5
15 The AXA stock price outperformed its The average liquidity of the AXA share benchmark indices in the first half of 2000 in 2000 was extremely high. Over the year, before falling below benchmark in the second an average of 8.3% of the float was traded half as the US economy slowed and a in any given month, reflecting a high in May number of major financial transactions were of 13.9%, due to the listing of preferential completed worldwide. While the transactions subscription rights, and a low of 6.6% in July. completed by AXA have improved its risk The average variance between the buy and profile, the investment markets appear to have sell price, another indicator of liquidity, was focused more narrowly on the loss of DLJ as also narrow. a cash earnings contributor, as well as on the In 2000, the ratings of AXA’s principal capital increase that was required to finance insurance and reinsurance operating the aforementioned buyout of AXA Financial subsidiaries were maintained: AA (Standard & minority interests and on the impact of the Poor’s), Aa3 (Moody’s) and AA (Fitch). potential flowback of AXA stock generated by the fact that certain US institutions limit At the annual meeting of shareholders on their holdings of non-US securities. May 9, 2001, shareholders will be asked For both analysts and investors, AXA to approve a 4-for-1 stock split. nonetheless remains a leading value in the insurance industry. The AXA share is included in the major European indices as well as the Dow Jones Global Titan Index, which includes Creating shareholder the stocks of the 50 largest US, Japanese and value: 1995-2000 European multinational corporations, and Standard & Poor’s S&P Global 100 Index, Net earnings per share (fully diluted, € the first global index that groups the world’s excluding non-recurring events) was 5.69 top 100 corporations on the basis of earnings. in 2000, an increase of 14.2% compared with the corresponding prior period (€ 4.98). Of the 25 securities analysts that track Net cash earnings per share was € 6.38, AXA on a regular basis, nine issued buy an increase of 16.8% compared with 1999. recommendations, five issued accumulate Since 1995, diluted cash EPS has grown by recommendations and eight were neutral. 19.2% on an annualized basis. At their annual meeting on May 9, 2001, NET FULLY DILUTED NET DIVIDEND shareholders will be asked to approve a EARNINGS PER SHARE PER SHARE 2.20 excluding non-recurring events dividend payout of € 2.20 in respect of 2000, 2.00 net fully diluted EPS a 10% increase over the dividend paid in net fully diluted cash EPS (in euros) 1.70 respect of 1999. In the last five years, the dividend paid to shareholders has increased (in euros) 1.37 by a compounded average rate of 17.3%. 1.14 Over the same period, the AXA stock price 6.38
5.46 has risen by an average of 28.9% per annum 4.48 5.69 3.70 4.98 (with dividend reinvested). 2.79 4.24 3.48 2.64
19961997 1998 1999 2000 19961997 1998 1999 2000
16 The AXA The AXA Shareholders’ Circle Group The AXA Shareholders’ Circle was Operations established in 1997 to strengthen ties with individual shareholders, bringing together Regular meetings are also held throughout Operating Highlights registered shareholders and interested holders the year with AXA shareholders in France. of shares in bearer form. As members of the Some 1,500 shareholders attended last year’s Financial Highlights Circle, shareholders receive information on annual meeting held on May 3, 2000 at the AXA’s operations, results and strategy at Palais des Congrès in Paris. AXA also participates Insurance regular intervals. Communications tools in the shareholders’ trade fair and in International include: information meetings co-sponsored by Insurance Euronext. The AXA Shareholders’ Circle newsletter Asset is published to coincide with the issuance Management of interim and annual financial statements, Listing in Results as well as with the annual meeting of the United States shareholders. Since June 25, 1996, the AXA stock has Other been listed on the New York Stock Exchange Information Special publications are issued in connection in the form of American Depositary Shares with significant events and transactions. (ADS), each representing one-half of one AXA SHAREHOLDERS ordinary AXA share (the stock split will lead at February 6, 2001 to parity).
2% 2% AXA’s buyout of AXA Financial minority Others Treasury Stock interests in 2000, which increased its 3% Switzerland ownership from 60.25% to 100%, also 21% 11% Finaxa and increased substantially the number of ADS. Germany Mutuelles AXA Currently, more than 40 million ADS are owned by institutional and retail investors and
8% company employees. Daily trading volume is 25% Benelux France close to US $35 million. of which: AXA Financial employees have purchased Employees: 1% Individual shareholders: 5% more than one million ADS via 401K retirement Institutional shareholders: 19% plans and the employee stock purchase plan. 14% United States 14% United Kingdom Non-stop information via Internet, press, Meetings with telephone and email AXA Shareholders AXA provides its shareholders with detailed, up-to-date information: In addition, AXA has set up an Individual In the business press, by publishing Shareholders’ Committee whose 15 members condensed financial statements and synopses are chosen from among the members of the of its shareholders’ meetings Circle. The Committee meets twice a year with Group executives to discuss AXA’s disclosure Via its Internet site: www.axa.com and communications policy with respect to Via the Minitel (France): 3616 AXA individual shareholders. Investor contact information is listed on page 66 of this report.
17 AXA as Corporate Citizen AXA takes its responsibilities toward the community seriously, and has been actively involved in corporate philanthropy since 1991, the year its internal network of volunteers was founded. Closely tied to the notion of mutual support that underpins AXA’s core business operations, AXA Hearts in Action coordinates volunteer initiatives and partnerships with non-profit community organizations.
The principle of mutual support AXA supports existing community service volunteers and non-profit organizations through AXA Hearts in Action chapters that have been established around the world. AXA AXA 2000: Hearts in Action helps charitable organizations 1,000 projects completed whose goals are consistent with its own by More than 30,000 volunteers in 40 connecting them with AXA employees who countries responded to the call, and more wish to donate their time, and also by than 1,000 community service projects were providing financial assistance. carried out. Measured in terms of the time AXA celebrated the end of the millennium and effort expended, the two-day AXA 2000 by sponsoring a special worldwide event on event mobilized the equivalent of 300 June 16-17, 2000. The aim of AXA 2000 was employees working full-time for one year. to mobilize AXA employees, as well as family Throughout the world, in Africa, North and friends, in a simultaneous act of and South America, Asia, Europe and the generosity worldwide. AXA Hearts in Action Pacific, AXA volunteers spent several hours initiated and orchestrated the event, matching with disadvantaged children and orphans, the needs expressed by non-profit community the sick and disabled, poor families and senior organizations with the talents and citizens. The types of initiatives undertaken commitments of AXA employees. were varied: medicine, food, clothing, furniture and toys were donated; schools, houses and community facilities were renovated, repainted or decorated; gardens were created or replanted, and empty fields
18 The AXA Group Operations
Operating Highlights
Financial were weeded. In other places, volunteers Highlights treated homeless children to a cultural outing Insurance or mapped 180 public access points for the disabled. There were also sporting events, International Insurance boat rides, visits to theme parks, magic shows, Asset games, puppet shows, song fests and Management dancing, which brought smiles to the faces of everyone involved. The success of the Results event can be summed up in the question Other that was heard around the world: when can Information we do this again? Behind the scenes, AXA subsidiaries provided logistical support and donated their premises. They also participated, via the AXA Intranet, in broadcasting the event in real time around the world. In addition to the outpouring of generosity that made AXA 2000 a success, the event also showed many volunteers that they have a contribution to make throughout the year.
19 Operatio
Luigi, Monica and Antonella
Life holds a lot of surprises! 8:15 a.m. That’s‘‘ why financial security is essential: Milan I need to know that my family is protected no matter what happens.’’
20 The AXA Group Operations
Operating Highlights
Financial ns Highlights Insurance
International Insurance
Asset Management
Results
Other Information
21 Organization
AXA’s business is managed by a Anthony J. Hamilton reporting period. The Audit Management Board consisting of Chairman of Fox-Pitt, Kelton Group Ltd.; Committee may examine any issue it Chairman of AXA UK five members, assisted by the deems appropriate and submits its Executive Board, whose 18 Henri Hottinguer findings to the Supervisory Board. Chairman of the Supervisory Board of executive officers represent five Credit Suisse Hottinguer and Emba different nationalities. Group The Finance Committee Richard Jenrette operations are divided into nine Senior advisor to Credit Suisse-First reviews projected real estate or business units whose CEOs report Boston securities asset divestitures when the directly to the Management Board Henri Lachmann sale price exceeds the powers and its President. The Supervisory Chairman and Chief Executive Officer delegated to the Management Board of Schneider Electric Board supervises the Management by the Supervisory Board. In Board. Gérard Mestrallet addition, the Finance Committee Chairman of the Management Board of Suez Lyonnaise des Eaux examines all proposed material financial transactions involving AXA SUPERVISORY BOARD Friedel Neuber Chairman of the Supervisory Board of that are put forward by the The Supervisory Board is made up of Westdeutsche Landesbank Girozentrale Management Board, as well as the 18 members with extensive financial, Alfred Freiherr broad outlines governing AXA’s asset industry or institutional experience. Von Oppenheim management policy and, more Its role is to supervise management Chairman of the Supervisory Board generally, all issues that pertain to of the Group and its subsidiaries and of Banque Oppenheim Jr & Cie AXA’s investment management policy. to report to shareholders. It met Michel Pébereau eight times in 2000. Chairman and Chief Executive Officer of BNP Paribas The Compensation Supervisory Board members Committee recommends (at 12/31/2000): Didier Pineau-Valencienne Honorary Chairman of Schneider compensation levels for the Chairman Electric; Vice-President of Credit Suisse- of the Supervisory Board and the First Boston Claude Bébéar members of the Management Board, Chairman of the Supervisory Board Bruno Roger the amount of director’s fees to be Senior Manager of Lazard-Frères Jean-René Fourtou submitted to the approval of the Vice-Chairman of the Supervisory Board, Vice-Chairman of the Management Board Annual Meeting of Shareholders, as of Aventis SUB-COMMITTEES OF well as Company stock subscription Antoine Bernheim THE SUPERVISORY BOARD and purchase options granted to General Partner of Lazard members of the Management The Supervisory Board has formed Jacques Calvet Board. It also reviews Management four specialized sub-committees Chairman of the Supervisory Board of Board proposals pertaining to the whose role is to implement and Bazar de l’Hôtel de Ville - BHV determination of compensation develop corporate governance Henri de Clermont- levels for AXA executives, and principles in conformity with Tonnerre proposed employee stock option Chairman and Chief Executive Officer shareholder expectations: of Ersa Société Industrielle et Financière subscription and purchase plans. and Sally Dunkerque The role of the David Dautresme Audit Committee The Selection Committee Chairman of Parande Développement is to examine the Company’s interim recommends nominees to the (Euris Group) and annual financial statements Supervisory Board and the Michel François-Poncet before they are presented to the Management Board and nominates Vice-Chairman of the Board of Directors of BNP Paribas Supervisory Board, as well as other their President, Chairman and Vice- financial documents issued by the Chairmen, as well as the Chairmen Patrice Garnier Member of the Boards of Directors of AXA Company in connection with the and members of Supervisory Board Assurance IARD and AXA Assurance Vie closing of the accounts for each sub-committees.
22 MANAGEMENT BOARD The AXA Group The Management Board is the decision-making body of the Company. Its current members were appointed for a period of three years by the Supervisory Board, effective January 19, 2000. Henri de Castries was appointed President Operations of the Management Board on May 3, 2001. The Management Board holds weekly meetings. Operating Henri de Castries Edward Miller Highlights President of the Management Board Vice-President of the Management Board Financial Françoise Colloc’h Claude Tendil Highlights Member of the Management Board Vice-President of the Management Board Gérard de La Martinière Insurance Member of the Management Board International Insurance
EXECUTIVE BOARD Asset Management The Executive Board assists the Management Board. It conducts quarterly business reviews, monitors the various strategic initiatives undertaken by the Group, and exchanges information on key strategic initiatives and operations. Results
Henri de Castries Alfred Bouckaert Donald Brydon Other President of the Management Board Acting CEO, AXA Royale Belge CEO, AXA Investment Managers Information
Jean-Luc Bertozzi Claude Brunet Claude Cargou CEO, AXA France Assurance (as of April 2, 2001) Executive Vice-President of Executive Vice-President of Operations Information Systems and Transversal Strategic Projects
Françoise Colloc'h Denis Duverne Gérard de La Martinière Member of the Management Board, Senior Executive Vice-President of Finance, Member of the Management Board, Executive Vice-President of Human Resources, Control and Strategy Senior Executive Vice-President Communications and Synergies of Finance, Control and Strategy
Claus-Michael Dill Michael Hegarty Edward Miller President of the Management Board, Vice-Chairman and Chief Operating Vice-President of the Management Board AXA Colonia Konzern Officer, AXA Financial and Chief Executive Officer of AXA Financial; head of Information Systems and e-business
Jean-Marie Nessi Michel Pinault Patrick Thourot Chairman and CEO, CEO of the Asia Pacific Executive Vice-President, AXA Corporate Solutions business unit Group Insurance Organization
Les Owen Claude Tendil Stanley Tulin Managing Director, Vice-President of the Management Board, Vice-Chairman and Chief Financial AXA Asia Pacific Holdings Chairman and CEO of AXA France Officer, AXA Financial Assurance
23 Highlights of the year 2000
integrating SLPH's operations of AXA and ONA, respectively, JANUARY within the Group, particularly in combine to form AXA Assurance Group the areas of e-business and asset Maroc, Morocco’s second largest AXA makes organizational management. insurer with market share of 21%. changes aimed at leveraging its France size and diversity, developing AXA wins the top prize in the JUNE cross-discipline pooling of corporate Intranet category of the Group resources and ensuring Net 2000 contest held every year AXA 2000. More than 30,000 AXA homogeneous Group under the auspices of the French Hearts in Action volunteers in management. As part of this Association of Unix and Open 40 countries around the world organizational change, the Systems Users. participate in 1,000 different composition of the AXA community service projects on Management Board changes, APRIL June 16 and 17, 2000. Measured and its nine business units are in terms of the time and effort given additional responsibilities. Group expended, the two-day AXA 2000 The GMS (Group Management Fourth edition of Scope, the AXA event mobilized the equivalent of Services) is charged with employee attitude survey 300 employees working full-time developing the concept of service, conducted internationally, entirely for one year. supporting operations and online for the first time in its Group coordinating lateral projects. history. The response rate for the AXA raises € 3.7 billion through survey – written in 17 languages the issuance of 30.2 million FEBRUARY and distributed to more than ordinary shares, in preparation for 100,000 employees in 50 the funding of the buyout of the Asia Pacific countries – is a record 67.8%. minority interests in Sun Life & After the AXA global brand was Provincial Holdings. The issue is adopted throughout the region in the largest capital increase ever 1999, National Mutual Holdings MAY effected in the European becomes AXA Asia Pacific Group insurance-banking sector. Holdings. Henri de Castries is appointed Hong Kong President of the AXA Management AXA China Region beats out 200 MARCH Board, succeeding Claude Bébéar, insurance companies, winning who is named Chairman of the Japan the Insurer of the Year award Following the agreement dated Supervisory Board. bestowed by Capital, a renowned November 1999, AXA Life Japan United Kingdom regional business publication. and Nippon Dantai combine to AXA UK subsidiary PPP healthcare create AXA Nichidan. sells its equity interests in several JULY healthcare establishments to a United Kingdom United Kingdom AXA and Sun Life & Provincial US-based firm in order to refocus Successful buyout of Sun Life & Holdings enter into talks aimed at on its core medical and client Provincial Holdings minority increasing the Group’s ownership advisory services. interests, which becomes a wholly of the latter from 56.3% to 100%. Morocco owned subsidiary of AXA and is AXA’s bid for full ownership of the AXA Al Amane and Compagnie delisted from the London Stock UK subsidiary is aimed at fully Africaine d'Assurances, subsidiaries Exchange on July 12, 2000.
24 AUGUST The AXA Group United States Operations AXA Financial, the Group’s principal subsidiary in the United Operating States, announces the sale of its Highlights investment banking arm Financial Donaldson, Lufkin & Jenrette to Highlights Credit Suisse. The transaction, in Insurance line with AXA’s desire to refocus on 3:05 p.m. Brussels its core insurance and asset International management operations, enables Insurance Elly, 30 DLJ to pursue its growth Asset objectives under optimal Management conditions by aligning with a Right now Antoine is in kindergarten, Results banking group of the first rank. but one day he’ll be in college. I can’t afford United States ‘‘ Other AXA launches an offer to buy out to have financial problems then. It would be Information the outstanding minority interests great if our financial advisor could help us in 60.3% owned AXA Financial with the aim of strengthening find the best solution. Group synergies and positioning itself to take advantage of growth ’’ opportunities in the US. dedicated to the management OCTOBER SEPTEMBER of AXA Australia and AXA New Group Zealand assets. Objective: Group AXA and Deutsche Bank sign a capitalize on growth opportunities AXA Re, AXA Global Risks and letter of intent concerning the sale in the region. AXA Cessions combine to of Banque Worms to the latter. form AXA Corporate Solutions, This transaction is in line with AXA’s DECEMBER offering global solutions to the strategy of refocusing on its core sophisticated or highly specialized business operations. The sale is United States needs of international finalized in February 2001. Closing of AXA’s offer to buy out corporations. United States AXA Financial minority interests. France Alliance Capital Management, a As a result, AXA acquires full AXA Investment Managers Paris is subsidiary of AXA financial, acquires ownership of AXA Financial, awarded two “Trophées d'Argent” the value asset manager Sanford C. which is delisted from the NYSE by Le Revenu, a French business Bernstein (with assets under on January 2, 2001. publication. management of approximately US United Kingdom United Kingdom $85 billion), an internationally The High Court approves the AXA subsidiary Sun Life & recognized active value equity financial reorganization plan Provincial Holdings changes its manager with one of the world’s concerning AXA Equity & Law’s name to AXA UK. most renowned sell-side investment Inherited Estate, according to research capabilities. which a portion of the assets that Australia and New Zealand had accumulated over the years AXA Asia Pacific Holdings and would be attributed to AXA as the Alliance Capital Management shareholder, with the remainder jointly create two companies attributed to policyholders.
25 Financial Highlights
CONSOLIDATED GROSS REVENUES CONSOLIDATED INSURANCE GROSS BY BUSINESS SEGMENT REVENUES BY GEOGRAPHIC REGION
6% 19% 20% International Insurance Property and North America Casualty
25% 5% France International Insurance 11% Asia Pacific 4% Asset Management 9% 16% Germany United Kingdom 14% 58% Other Financial Services Life and Savings 4% 9% Belgium Other
TOTAL: € 80 billion TOTAL: € 65 billion
TOTAL CONSOLIDATED GROSS REVENUES IN 2000: € 80 BILLION (+ 20.2%)
ASSETS UNDER MANAGEMENT AS AT DECEMBER 31, 2000
ASSETS UNDER MANAGEMENT ASSETS UNDER MANAGEMENT BY COMPANY BY CATEGORY
AXA Investment Managers (and others in Europe) AXA Financial Separate account 36% (including assets Alliance Capital) 13% 58%
Managed on behalf of third parties 53%
AXA 6% 34% Other (General account assets)
TOTAL ASSETS UNDER MANAGEMENT as at December 31, 2000: € 892 BILLION (+ 14.2%)
26 The AXA Group Operations
Operating Highlights
Financial NET CASH EARNINGS* CONTRIBUTION TO NET CASH EARNINGS* Highlights (in euro millions) (GROUP SHARE) BY SEGMENT (in euro millions) Insurance 3,555 1999 2000 International 3,121 Insurance
Life and Savings 1,121 1,437 Asset 2,598 Management Property and Casualty 629 408
International Insurance (46) 153 Results Asset Management 99 211 Other Other Financial Services 264 273 Information
Holding Companies (22) 58
980 1,618 Total 2,045 2,540 1,076 2,045 1,015 2,540
1998 1999 2000
Group share Minority interest
EARNINGS PER SHARE FULLY DILUTED CONSOLIDATED SHAREHOLDERS’ (excluding non-recurring events) EQUITY (GROUP SHARE) (in euro billions)
(in euros) 24.3 6.38 5.46 4.48 5.69 4.98 16.4 3.70 4.24 3.48 2.79 13.5 12.0 2.64 6.8
19961997 1998 1999 2000 19961997 1998 1999 2000
(in millions 193 331 350 356 416 EPS of shares) Cash EPS (excluding goodwill amortization) Cash ROE*: 9.6% 11.9% 13.6% 14.7% 13.7%
5-year increase in cash ROE: 410 bp 5-year increase in shareholders’ equity: 257%
* As of 2000, AXA’s consolidated net earnings are stated as cash earnings, i.e. excluding exceptional operations and before goodwill amortization.
27 Financial Highlights (cont’d.)
CONSOLIDATED GROSS REVENUES
(in euro millions) 1999 2000 Life & Property & Total Life & Property & Total Savings Casualty Savings Casualty Europe (and Morocco) 23,422 12,919 36,341 26,672 14,735 41,407 France 10,555 3,926 14,481 12,528 4,001 16,529 United Kingdom 7,205 2,008 9,213 7,939 2,683 10,622 Germany 2,757 2,766 5,523 2,912 3,085 5,997 Belgium 912 1,285 2,197 1,099 1,297 2,396 Italy 343 903 1,246 390 1,038 1,428 Spain 333 729 1,062 420 897 1,317 The Netherlands 875 248 1,123 924 274 1,198 Portugal 126 262 388 121 304 425 Ireland 257 257 424 424 Austria and Hungary 88 199 287 90 220 310 Turkey 24 139 163 40 252 292 Morocco 42 88 130 69 139 208 Luxembourg 104 51 155 79 52 131 Switzerland 59 57 116 62 69 131 North America 10,810 580 11,390 12,527 663 13,190 United States 10,777 10,777 12,483 12,483 Canada 33 580 613 45 663 708 Asia Pacific 2,859 94 2,953 6,796 181 6,977 Australia/New Zealand 1,810 1,810 2,399 2,399 Japan 133 6 138 3,353 26 3,379 Hong Kong 742 43 785 837 96 933 Singapore 59 46 105 127 59 186 South Korea 114 114 76 76 China 1 1 4 4 International Insurance 3,109 3,651 AXA Corporate Solutions (reinsurance) 1,385 2,124 AXA Corporate Solutions (insurance) 1,400 1,097 AXA Cessions 34 76 Assistance, other 290 353 Asset Management 1,928 2,984 Other Financial Services 10,806 11,760 AXA’s CONSOLIDATED REVENUES 66,528 79,971
28 The AXA Group Operations
Operating CONTRIBUTION TO NET CASH EARNINGS* (GROUP SHARE) Highlights
Financial (in euro millions) Highlights
1999 2000 Insurance Life & Property & Total Life & Property & Total Savings Casualty Savings Casualty International Insurance Europe (and Morocco) 812 653 1 466 913 438 1,351 France 335 253 588 388 281 670 Asset United Kingdom 189 11 200 179 (150) 29 Management Germany 14 61 76 41 159 200 Belgium 192 258 449 172 191 363 Results Italy 25 0 25 44 (66) (22) Spain 1 (3) (2) 14 6 20 Other The Netherlands 42 8 51 57 8 66 Information Portugal 7 9 15 7 18 26 Ireland 4 4 (15) (15) Austria and Hungary 1 7 8 3 6 8 Turkey 1 5 5 1 9 10 Morocco 1 35 36 2 (14) (12) Luxembourg 2 4 7 2 3 5 Switzerland 3 2 4 3 1 4 North America 270 14 283 409 22 432 United States 268 268 405 405 Canada 1 14 15 4 22 27 Asia Pacific 40 (38) 2 116 (50) 66 Australia/New Zealand 30 30 17 17 Japan (28) (30) (58) 52 (58) (6) Hong Kong 27 (2) 25 43 7 50 Singapore 4 (6) (2) 2 1 3 South Korea 9 9 4 4 China (2) (2) (2) (2) International Insurance (46) 153 AXA Corporate Solutions (reinsurance) 99 133 AXA Corporate Solutions (insurance) (151) (17) AXA Cessions (7) 15 AXA Assistance, other 14 22 Asset Management 99 211 Other Financial Services 264 273 Holding Companies (22) 58 GROUP SHARE NET CASH EARNINGS 2,045 2,540
* As of 2000, AXA’s consolidated net income is stated as cash earnings, i.e. excluding exceptional operations and before goodwill amortization.
29 AXA in the World
AXA is a global company that offers its products and services in the world’s major developed markets: Europe, the United States and Japan. AXA is also present in a number of other markets where sizeable businesses can be developed ethically and profitably. AXA will realize its vision, which is to be the world leader in financial protection and wealth management, through three business strategies: the implementation of aggressive operating priorities; a more focused geographical spread aimed at “leadership or exit,” and opportunistic acquisitions centered in selected geographic regions.
Life and savings, property and casualty North America Europe Asia Pacific Premiums: € 13 Premiums: € 41 Premiums: € 7 billion billion billion Net cash earnings: € 432 Net cash earnings: € 1,351 Net cash earnings: € 66 million million million
30 The AXA Insurance Group Operations
Operating With consolidated gross premiums of € 61.6 billion – € 46 billion Highlights Financial provided by the Life and Savings Segment (up 8.4%) and Highlights € 15.6 billion by the Property and Casualty Insurance Segment (up 3.7%) – insurance operations contributed 73% of AXA’s Insurance consolidated net income in 2000. International Insurance
Asset and retirement savings products € Management EUROPE generated 300 million in has been stable. subscriptions. The “Autonomie” Results FRANCE product combines assistance For the first time in a New products and services and a savings product. Other services for our customers Information number of years, the A new investment account, in French property and casualty In 2000, AXA formally launched the form of a securities trading insurance market showed signs the global strategic change account or stock savings plan, of a genuine recovery in 2000. program that grew out of the offers investors access to a basket Increased demand for broad strategic rethink of mutual funds. Other innovative commercial insurance coverage, conducted in 1999. The projects products, currently in the pilot combined with premium rate implemented as part of the phase, will be brought to market increases implemented after the program involve all of AXA’s in 2001. storms in December 1999 – which insurance units in France and were moderate in personal lines share a common goal: that Sophie and Isabelle and more substantial in commercial of improving operating lines – resulted in a 4% increase performance while building in gross premiums. a truly customer-centric The French life insurance and organization. Initiatives savings market grew by 20% in launched in 2000 include: 2000, a performance that can be The constitution of a single attributed to several factors: the customer database that will make buoyancy of investment markets it possible to segment the in recent years; the development portfolio, develop new sales of an attractive array of products, and marketing tools, and better 11:05 a.m. such as fund windows; and the understand the requirements Toulouse tendency on the part of a of individual customers. growing number of savers to The rollout of a uniform range We want to help reinvest mature bank savings of products for all distribution our kids get off to a good plans or traditional life insurance channels. “AXA Objectif 300,” ‘‘ contracts in more recent life a fund window offering investors start in life. How do we insurance products. In addition, the opportunity to triple their for the second year in a row, the initial investment in ten years get started? tax environment for life insurance under certain conditions, ’’
31 efficient service to customers impacted by the “Lothar” and
André and Michèle “Martin” storms that swept across France in December 1999. Over Staying healthy is 500,000 case files were opened, including 360,000 personal and ‘‘essential, but this becomes 140,000 commercial claims. more and more expensive At the end of 2000, claims totaling € 950 million had been settled. with age. We’ll need evolving The supplementary health coverage. insurance call center set up in 1998 to answer policyholder 5:20 p.m. questions and offer advice and Lyon ’’ referrals registered a fivefold increase in the number of calls in 2000. In addition, the related healthcare provider network has A new distribution concept partnership with Crédit Foncier. been expanded to include dental targeting retail and professional The aim of both partnerships is surgery, radiology, and eye and clients was launched with the to respond more effectively hearing care. opening of the first Espace AXA at to customer needs. AXA in France is also playing a the Val d’Europe shopping center major role in the Group-wide in the Paris suburbs. This point Helping our employees effort to rationalize data put the customer first of sale features a full range of processing centers, and now products, managed by a service The strategic change program provides this service for AXA center. also includes efforts to develop subsidiaries in Italy and the new employee attitudes and A new Internet site, combining Netherlands. streamline support functions all existing sites, secures customer within AXA’s insurance operating access to a number of online Solid performance in life units in France. services. insurance and property In the area of human resources, and casualty insurance Telephone service centers have AXA in France launched in France been opened, enabling claims “Rencontres Cap Client,” an Despite the persistence of an managers to handle claims initiative intended to raise intensely competitive directly with customers. In employee awareness of environment and the pursuit of addition to property and casualty the changes in method and a highly selective underwriting claims, the service centers also behavior that a customer-centric policy, AXA reported 2% growth administer retirement savings and organization implies. In a series in property and casualty personal protection contracts. of meetings, which will run until insurance gross premiums. Pursuit and extension of June 2001, employees are On a comparable basis, gross technical and commercial learning to acquire new behaviors premiums were virtually partnerships, such as the and improve their listening skills. unchanged compared with consumer credit joint venture Claims managers working for all 1999, rising at the end of the with Cetelem, in which AXA the Group’s property and casualty year. Erosion in property lines was owns 65% and Cetelem 35%, insurance companies in France offset by growth in natural and the mortgage lending made a special effort to provide disaster and construction
32 insurance lines, while automobile Net cash earnings from life savings and retirement: The AXA insurance lines remained stable. insurance and savings operations investment accounts, fund Group Sales recovery was significant, increased by 15.9% in 2000 to windows. € € Operations particularly in personal lines 388 million, versus 335 In addition, AXA will continue insurance. million in 1999. The negative to upgrade its existing sales Operating Highlights Net cash earnings from property impact of a change in tax channels and explore viable and casualty operations rose by regulations and a lower level of Financial alternatives – the “Espaces AXA,” Highlights 11.2% to € 281 million in 2000, realized gains were more than generalist agents, Internet – with compared with € 253 million in offset by portfolio growth and the aim of expanding its delivery Insurance 1999. The 1999 total included a improved operating margins. capacity. The various distribution International one-off charge, while net channels will be furnished with Insurance The outlook in 2001 earnings in 2000 were impacted new marketing and sales Asset by a significantly lower level of 2000 was primarily devoted to management tools designed to Management designing and testing the realized gains and higher tax optimize product delivery and Results expense. innovative initiatives related to foster a new relationship with In a buoyant operating market, the strategic change program. In customers. Other Information individual and group life and 2001, they are being rolled out. AXA will continue to implement health insurance gross premiums AXA seeks to build on its image as open architecture, seeking rose by € 2 billion in 2000, an an expert in financial protection partnerships that offer a source of increase of 19% compared with and wealth management, competitive advantage and that 1999. Individual retirement savings advising its clients at every critical make the best products and premiums, which accounted for stage in their lives. It will do so by services available to its customers. broadening its product and 65% of total life insurance gross Achieving better service quality is service offering in France, premiums in 2000, grew by 31%, one of AXA’s primary goals. In the particularly in the following areas: outperforming the French market first six months of 2001, this transportation: a comprehensive as a whole. Growth in this commitment will take shape in motor vehicle solution that includes segment was driven by higher the form of service platforms and financing, purchase, insurance, sales in all distribution channels: expert centers in the French assistance and maintenance; + 39% for the tied agency force, provinces designed to expedite + 56% for the brokerage housing: mortgage lending, claims processing. channel, and + 23% for the new value replacement of The AXA France Web site (axa.fr), salaried sales force. This property, in-kind repairs, remote which went online at the end of performance also reflects the surveillance; 2000, will be completed and success of AXA’s separate account (unit-linked) products, which now 2000 account for 62% of individual (in euro millions) Life Property Total and casualty retirement savings premiums, Gross premiums compared with 43% in 1999. France 12,528 4,001 16,529 In the supplementary health Contribution to net cash insurance segment, AXA reported earnings gross premiums of € 1.4 billion, France 388 281 670 confirming its position as the leading private insurer in this market.
33 integrated into the AXA financial A number of independent Insurance. The integration of services portal, where customers financial advisors consolidated, operations that followed the can get advice, make transactions reducing the number of acquisition of Guardian Royal and track the progress of their insurance companies they work Exchange was completed, new contracts. Naturally, AXA will with as well. The regulatory enabling the company to align continue to make available the environment prepared for the its methods with Group best resources required to achieve a introduction of "Stakeholder practices and launch several seamless conversion to the euro. Pensions" in April 2001 at the projects designed to improve behest of the British government. customer service. In late 2000, UNITED KINGDOM The sales charge AXA Direct began selling motor The property and on these new retirement savings insurance contracts online via its casualty market products will be limited to 1%, underwent significant and there will be no surrender Web site. consolidation in 2000. penalties. The retirement market AXA Sun Life focused its efforts Inflationary pressures and higher currently accounts for around on carrying out an action average settlements on bodily 30% of total life insurance gross plan intended to enhance injury claims were partly offset premiums in the UK. organizational efficiency, reduce by premium rate increases. In operating costs, improve customer volume terms, the market was Restructuring in line service and win customer loyalty. virtually unchanged compared with strategy The company adapted its offering with the prior year. 2000 was a year of restructuring to the new regulatory The UK life insurance market was and consolidation for property environment, developing a full boosted by revenue growth. and casualty specialist AXA range of products that comply with Stakeholder Pension requirements. At the same time, it Mike, 38 began strengthening its presence in high growth segments. In the health insurance market, PPP healthcare – a subsidiary of AXA UK – discontinued its hospital 9:15 a.m. management business, selling Birmingham its equity interest in a company that owned four hospitals and a laboratory to a US operator in order to refocus on its core Nobody ever plans to have healthcare financing and client an‘‘ accident. But I want to at least advisory services. A preferred be sure that my wife and kids will be suppliers network, made up of some 300 hospitals and specialized taken care of if need be. care centers selected for their ’’ ability to deliver value for money, is currently being set up.
34 Two major events of AXA Equity & Law and AXA € 6.9 billion, a decrease of 5% The AXA 2000 was marked by two major Sun Life in the interest of versus the prior year. Strong Group events for the Group. streamlining management. growth in retirement savings Operations The buyout of minority (14%) was offset by lower sales interests in Sun Life and Provincial Premiums: growth in in other product lines. Two Operating the property and casualty Highlights Holdings. The terms of the offer, factors explain the overall decline segment; a slight accepted and recommended by Financial downturn in life in premiums: in 1999, sales Highlights the independent members of insurance were boosted by promotional Insurance the SLPH board of directors, were The UK property and casualty campaigns that were not repeated ratified by the High Court. In July in 2000, and competition was group recorded gross premiums International 2000, SLPH became a wholly of € 2.7 billion in 2000, a 1.6% particularly intense in 2000. Insurance owned subsidiary of the AXA increase due primarily to growth Health insurance gross premiums Asset Management Group – which previously owned in motor insurance premiums increased by 5.1% to € 1.179 56.3% – and was delisted from (+ 8.7%). Other lines remained billion, reflecting premium rate Results the London Stock Exchange. stable. The € 150 million net increases implemented to The transaction was intended cash loss in 2000 was mainly improve profitability. Net cash Other to enable AXA to fully leverage Information attributable to a strengthening of earnings for the UK life insurance synergies among its principal insurance reserves, a deterioration group decreased 5.1% to € 179 subsidiaries, particularly in the in the motor claims ratio, higher million, as the decline in new areas of information systems, average settlements for bodily business was partly offset by the brand management and injury claims, and the impact increase in AXA’s equity ownership underwriting. At the end of of the flooding that occurred in of its UK subsidiaries. September, Sun Life & Provincial the last quarter of 2000. Holdings was renamed AXA UK. The UK life insurance group The outlook in 2001 The High Court approved the (excluding health) accounted for Efforts to streamline internal financial reorganization plan that more than 65% of AXA’s gross processes, grow the skills of the AXA Equity & Law submitted to premiums in the United Kingdom workforce, beef up the product its policyholders, according to in 2000. AXA Sun Life recorded range and offer new services which a portion of the assets gross life insurance premiums of should produce results in 2001 of AXA Equity & Law that had accumulated over the years (referred to as the “Inherited Estate”) would be attributed 2000 Life Property Total to AXA as the shareholder, with (in euro millions) and casualty the remainder attributed to Gross premiums policyholders in the form of a United Kingdom 7,939 2,683 10,622 reorganization bonus plus an Ireland - 424 424 immediate cash payment. Contribution to net cash earnings AXA’s share in the Inherited United Kingdom 179 (150) 29 Estate will be used to ensure Ireland - (15) (15) the solvency of “with profit” business through 2006. In addition, AXA may merge the life insurance operations
35 for AXA’s property and casualty and life insurance operations in the United Kingdom. However, Helke, 42 the introduction of Stakeholder Pensions is expected to have a significant impact. What I appreciate is IRELAND AXA is present in the knowing‘‘ that I can contact consumer property my advisor easily, even if and casualty insurance market in Ireland, where it is number one I only have a simple in motor insurance with market 5:00 p.m. question. share of approximately 30%. Cologne 2000 was the first full year of ’’ operations following the acquisition of Guardian Royal Exchange. AXA’s various operating units in Ireland gradually adopted services specialist for individuals, the AXA brand during the year, GERMANY The integration of and is making the following and now do business as AXA Albingia, the German changes to reflect this new Broker, AXA Direct and PMPA, a subsidiary of Guardian Royal approach: member of the AXA Group. The Exchange, was successfully Genuinely multi-channel change, accompanied by a completed according to schedule. distribution nationwide advertising campaign, In addition, as of fall 2000, all has already increased awareness Comprehensive solutions that products are now marketed of the AXA brand considerably. respond to the full range of under the AXA Colonia name. It currently stands at 78%. customer needs and a commitment This rebranding initiative has Although inflationary pressures to optimal service quality. The significantly strengthened the were present throughout the company is fine-tuning its Group’s position in the German year, business was boosted by segmentation techniques to align insurance market, where it is sales efforts on the part of pricing with risks and is building number two in the property and distribution networks. Premiums up a single customer database casualty segment, number six in rose by 8.9% to € 424 million, for all networks. the life insurance segment, and a while net cash earnings decreased As part of its repositioning effort, major player in industrial and by € 20 million due to the AXA Colonia acquired the real transport risks. strengthening of insurance estate mortgage lending bank reserves (€ 50 million). Objectives tied directly Frankfurter Bodenkreditbank. to customer expectations Since renamed AXA Bank, this The strategic review undertaken acquisition provides AXA Colonia in 1999 resulted in a full-scale with a single operating platform reorganization of the company for its banking and savings around customer needs. The related activities and serves to company is repositioning itself as reinforce AXA Colonia’s image an insurance and financial as a full-service financial advisor.
36 Property and casualty Property and casualty gross insurance in 2000 limited growth The AXA insurance premiums premiums, which declined due to in the life insurance market to 2%. Group stable the deconsolidation of Albingia’s However, the market remains Operations Despite rate increases in foreign business and the decision fundamentally well oriented and automobile premiums in late to improve the quality of risks in the government is expected to Operating Highlights 1999, intense competitive the portfolio of inforce commercial introduce a supplementary pressure has remained constant risks business, totaled € 3,085 pension system as of 2002. Financial Highlights in the German property and million. Automobile gross AXA Colonia reported life casualty market since 1994. As a premiums (which account for insurance gross premiums of Insurance result, the property and casualty 28% of total premiums) were € 2,912 million, a 3% increase. International market grew by only 1.3% in stable, while property gross Thanks to the strong performance Insurance of the brokers network and the 2000. premiums (which account for Asset Against this backdrop, AXA 20% of total premiums) 11% increase in unit-linked Management Colonia improved underwriting decreased by 4%. Nonetheless, product sales, which now Results quality by introducing more net cash earnings from AXA’s account for 28% of new business effective methods for segmenting German operations increased in recurring premium products, Other Information individual customers in the by 167% to € 159 million, versus this type of product performed better than the market as a automobile insurance portfolio with € 60 million in 1999. This whole. Growth in pure "fund" and applying a more selective improvement can be attributed products was driven by AXA underwriting policy to corporate to the impact of tax reform and Future Concept, a financial risks. The industrial risks claims the increase in AXA’s equity planning software program ratio improved significantly over ownership of its German property designed for use by AXA Colonia’s 1999 due to a reduction in large and casualty subsidiaries. tied agency force. claims and the company’s more Life insurance: unit-linked Group insurance gross premiums profit-oriented underwriting products post strong decreased by 6.5% compared strategy. However, AXA Colonia growth with 1999, when they were elected to strengthen insurance In 2000, this market felt the boosted by the conclusion of one reserves on certain portfolios, backlash of the strong growth exceptionally large contract. such as Albingia’s inward recorded in the second half of Health insurance gross premiums reinsurance business (which was 1999 as the threat of less rose by 9% in 2000, compared discontinued in 1999). favorable tax treatment for life with 6% growth for the market Sicher Direct, AXA’s direct insurance contracts loomed. as a whole. As a result of effective automobile insurance marketing The wait-and-see attitude that price/service positioning, AXA unit in Germany, has also prevailed with respect to life Colonia now ranks among the adopted a targeted underwriting policy and reduced general 2000 expenses, bringing it ever closer (in euro millions) Life Property Total and casualty to breakeven. Sicher Direct is now Gross premiums a wholly owned subsidiary of Germany 2,912 3,085 5,997 AXA Colonia after it acquired AXA Contribution to net cash Direct’s 50% equity interest with earnings the aim of integrating direct Germany 41 159 200 marketing into its distribution strategy.
37 top five players as measured in offer its customers more effective the market raised their automobile terms of new business. Net cash local service. The company’s life insurance premiums rates at the earnings from life insurance insurance business, primarily end of 2000, which could lead € operations totaled 41 million driven by growth in unit-linked to better conditions in 2001. in 2000, a 192% increase over products, continues to develop Life insurance gross premiums 1999. In addition to the factors in line with forecasts. The decreased 1%, in a market that that boosted net cash earnings contribution to AXA’s consolidated grew by 9.1%, primarily due to from property and casualty net cash earnings was € 3 million the under-performance of single insurance operations, earnings (from life insurance operations) premium products, which the from life insurance operations and € 1 million (from property company does not consider were also boosted by an and casualty operations). to be sufficiently profitable. improvement in the net investment result. AUSTRIA AXA Nordstern Colonia is A number of adverse pursuing its strategy of building The outlook in 2001 factors weighed on an integrated offer around Projects initiated in 2000 that the Austrian property and StarConto. Through this full-service will be pursued in 2001 include: casualty market in 2000: approach, the company seeks The financial portal targeting increased competition, particularly to establish an ongoing the retail market; in the automobile insurance relationship with customers, Efforts to improve management segment; a severe hailstorm in increase its knowledge of their July 2000; and a change in tax processes, enabling agents to needs, and offer a full range regulations which rendered devote more time to advisory of supplementary services. AXA activities and customer service by insurance reserves partially has taken steps to accelerate freeing them from routine taxable. In spite of the foregoing, business development in this administrative tasks; AXA Nordstern Colonia reported market, including the formation Reorganization of the company a 6.2% increase in gross of a dedicated unit within the into Client Manager, Operations premiums, outpacing market agency force to sell life insurance Manager and Infrastructure growth of 3.3%. Excluding the and savings products, and the Manager divisions. automobile portfolio, property and casualty gross premiums enhancement of the life insurance SWITZERLAND increased by 7% compared with components of the StarConto the previous year. Most insurers in In Switzerland, a flat offering. but profitable market, AXA Assurances reported a 18%
rise in property and casualty 2000 premiums and 3.5% growth in (in euro millions) Life Property Total and casualty life insurance premiums. Gross premiums The company, which has Switzerland 62 69 131 historically been more firmly Austria & Hungary 90 220 310 entrenched in French-speaking Contribution to net cash earnings Switzerland, strengthened its Switzerland 314 operating unit in German- Austria & Hungary 368 speaking Switzerland and increased its marketing outlays in order to enlarge its network and
38 HUNGARY The AXA To fully capitalize on Group its number six position Operations in the Hungarian pension fund market, AXA has begun to sell life Operating Highlights insurance products to clients who 8:50 p.m. have already purchased its Financial Bruges Highlights pension funds and has adopted a more comprehensive customer Insurance approach. These initiatives are International expected to produce results in Insurance 2001. Number five in the This house has been Asset Hungarian insurance market, Christine, 47 a‘‘ long-term project, and we Management the company has launched its Results own version of Austria’s StarConto would like to make the right choice in terms of and works in close cooperation security. We need to be able to rely on our Other with AXA Nordstern Colonia. Information In 2000, premium growth was insurer for good advice. substantial in life insurance (23%) and property and casualty ’’ insurance (28%) and profitability was satisfactory. Belgium, created out of the restructured and harmonized for merger of Anhyp and Ippa in both the retail life and non-life BELGIUM January 2000. markets and the small- and mid- In 1999, AXA set up sized business market. a multi-channel Building an organization Other highlights: distribution system and merged for customers The opening of a its various operating units in This reorganization of operations Communication center, a sales Belgium into two divisions: into two divisions, which is the and management hub designed The insurance division, created first stage of AXA’s strategy in to relieve brokers and other out of the merger of AXA Belgium Belgium, was completed in 2000 distributors (such as Les and Royale Belge, primarily sells with the combination of corporate Assurances de La Poste and its products through brokers and services employees and operating automobile manufacturers) of a alternative networks such as Les teams. The aim of this pooling of number of administrative tasks, Assurances de La Poste (a resources is to improve customer leaving them more time for sales subsidiary jointly owned by the service delivery, fully exploit and CRM related activities. Belgian National Postal Service synergies between the two and AXA Royale Belge); the divisions, and generate economies The launch of "Happy Life," a Ardenne Prévoyante and UAB of scale. Customers now have new life insurance concept based (subsidiaries of AXA Royale Belge), access to AXA’s full offering of on the American "financial and automobile manufacturers. savings and insurance products planning" approach, combining The banking division, which is in Belgium, regardless of the personalized advice and flexible Belgium’s sixth largest bank, intermediary they choose. retirement planning solutions consists of the 1,600 independent In a parallel move, product based on current resources and exclusive agents of AXA Banque ranges were completely future needs.
39 A slight increase in property and casualty 2000 premiums; strong growth (in euro millions) Life Property Total in life insurance sales and casualty In 2000, the Belgian insurance Gross premiums Belgium 1,099 1,297 2,396 market confirmed the trends Netherlands 924 274 1,198 observed in 1999: stability in the Luxembourg 79 52 131 property and casualty segment, Contribution to net cash and significant growth in earnings Belgium 172 191 363 individual life insurance, driven Netherlands 57 8 66 by unit-linked product sales. Luxembourg 23 5 Against this backdrop, AXA’s property and casualty gross premiums totaled € 1,297 million in 2000, a 1.5% increase. AXA is the development of new tools, health insurance, retirement Belgium’s leading property and capital equipment upgrades and savings and personal protection casualty insurer with market share staff training, will continue until products offered at rates that are of 19%. Automobile gross 2003. Initiatives that should be more advantageous than premiums, which account for fully operational this year include individual rates for this coverage. 43% of total premiums, rose by an e-business portal. In addition, AXA relieves corporate 2.5% due to higher premium clients of the task of administering rates. Net cash earnings THE these packages. The concept, decreased by 26% to € 191 NETHERLANDS launched in 2000, will be fully million, mainly due to a lower The life insurance operational in 2001. New unit- level of realized gains on equity market was adversely linked life insurance products for securities. affected by uncertainty related to individuals were also launched. Life insurance gross premiums tax reform measures that went This segment of the life insurance rose by 21%, in line with the into effect on January 1, 2001, market is the only one in which market, to € 1,099 million. This one of which reduces the tax new product development is increase is attributable to sustained advantages on recurring premium occurring. growth in individual life insurance products. Consequently, recurring Property and casualty insurance (26%), particularly in unit-linked premium product sales declined, activities were reorganized and contracts (94%). The latter now while single premium product refocused on personal lines and account for 31% of gross sales continued to rise. coverage for small- and mid-sized premiums, up from 20% in 1999. In the health insurance segment, businesses, for which standardized Net cash earnings totaled € 172 a 10% rise in premium rates is packages were developed. million, down 10% versus 1999, expected to restore market In November 2000, AXA due to the lower level of realized profitability. Verzekeringen and Shell jointly gains on equity securities in 2000 Property and casualty insurers launched a range of “mobility appear to be responding to compared with the previous year. insurance” products called Shell under-pricing of automobile Polis, which can be purchased premium rates. The outlook in 2001 over the phone or via the AXA Verzekeringen developed a The strategic reorganization and Internet, facilitating customer range of Employer & Employee related projects, which include access and responding to the benefits packages consisting of business process reengineering, demand for flexibility.
40 Property and casualty insurance SPAIN AXA Seguros site and conduct The AXA gross premiums rose by 7% to Trends observed in transactions on seven European Group € 274 million. Life and health stock markets (Amsterdam, the Spanish market in Operations insurance gross premiums reached 1999 were confirmed in 2000, Frankfurt, London, Madrid, Milan, € 924 million, up 5.4% compared with continued recovery of Paris and Zurich) and two in Operating Highlights with 1999. Net cash earnings from automobile insurance sales and North America. life insurance operations totaled strong growth in the life Another initiative aimed at Financial Highlights € 57 million, a 35.4% increase insurance segment due to the improving customer service was due primarily to a higher net mandatory outsourcing of the creation of the Finance Club Insurance investment result and higher pension management required for agents and brokers with a International management fee income on of Spanish employers since 1999. large life insurance portfolio. Insurance unit-linked investment products. The structure provides members Asset Net cash earnings from property A customer-centric with sales and planning tools, Management and casualty insurance strategy sales and marketing materials, Results operations totaled € 8 million. AXA Seguros made a series of information and training important innovations in 2000 programs offering three levels Other The outlook in 2001 as part of its new customer of specialization. The most Information The Group will continue to service and commitment focus: advanced of these leads to implement its strategy aimed at: A new range of homeowners’ financial planning accreditation, developing individual and comprehensive insurance entitling degree-holders to group life and health insurance products, designed with the help business; of the federation of Spanish consumer protection associations, Hank, 43 enlarging the range of property was brought to market; and casualty insurance products for consumers and small- to mid- Clear promises, including sized businesses. roadside automobile assistance in less than one hour, and the LUXEMBOURG implementation of a tax hotline The year was devoted for life insurance policyholders; to relaunching the The introduction of a loyalty businesses grouped under AXA card offering access to numerous Assurances Luxembourg after benefits; 3:10 p.m. the mergers of 1999. The launch of an Internet site, Amsterdam Life insurance gross premiums which will be continually totaled € 79 million, down enhanced for greater interactivity 24.1% compared with 1999. As an employer, I’d like with present and future customers. Property and casualty insurance to be able to resolve all employee In addition, AXA Seguros entered ‘‘ gross premiums rose by 4% to into a partnership with Cortal, € 52 million. benefits issues at once: health France’s leading online broker. The contribution to AXA’s Through this agreement, which care, personal protection and consolidated net income was went into effect in March 2001, € 3 million (from property and retirement. customers of the Spanish casualty insurance operations) company can access Cortal’s and € 1 million (from life ’’ online transaction site via the insurance operations).
41 manage sizable personal asset business growth and further premium rate increases enacted portfolios in the same way as improvement in its underwriting in late 1998. Automobile traditional financial services margin in 2000. premiums account for two-thirds networks. In addition, AXA and The two Spanish operating of total property and casualty Banco Bilbao Viscaya Argentaria units – AXA Seguros and Direct premiums. Seguros – launched the e-claims have now reorganized their cross- Life insurance sales were lifted by initiative in 2000, one the Group’s shareholdings. AXA acquired the subcontracting of pension fund major strategic projects. The aim BBVA’s 30% interest in its Spanish administration and new business of the e-claims initiative is to holding company, AXA Aurora, in individual lines, particularly improve customer service and making the latter a wholly unit-linked product sales, which reduce vehicle repair turnaround owned subsidiary of AXA. BBVA by managing material automobile were up by 47%. Life insurance maintained its 50% equity interest claims via the Internet. gross premiums totaled € 420 in Direct Seguros. million in 2000, a 26% increase, In 2001, BBVA began selling Strong rise in premiums while net cash earnings products developed by Direct Property and casualty insurance amounted to € 14 million, versus Seguros, the direct marketing gross premiums rose by 23% in € 1 million in 1999. A one-off venture set up by AXA and BBVA 2000. Net cash earnings from charge of € 12 million was in 1996, through its branch property and casualty operations recorded in 1999. network. As in 1999, Direct totaled € 6 million, a return to Seguros recorded sustained profitability attributable to the The outlook in 2001 The Group will focus on completing three important projects: Peace of mind in case of Expansion of its distribution a problem. I need to know that a capability through new banking ‘‘ partnerships; simple phone call is all it takes to get Formation of an investment roadside assistance. company to comply with the legal requirement that insurers ’’ sell investment products through a separate structure from their insurance operations. The company plans to begin by selling AXA Investment Managers products, but will later add other 10:20 a.m. products to its offering. Madrid Manuel, 27 Continuation of the e-claims project, whose initial phase should be complete by the summer of 2001.
42 PORTUGAL AXA Seguros under-performed ITALY The AXA The Portuguese the property and casualty market The Italian property Group in 2000, with gross premiums up property and casualty and casualty has Operations market expanded by 11.5% in 6% to € 304 million, reflecting the experienced sustained growth 2000, outpacing growth impact of product harmonization. for two years in a row. In March Operating Highlights recorded over the two previous In addition, the company was at 2000, the government placed years, primarily due to the a one-year freeze on premium Financial a competitive disadvantage in Highlights development of workers’ workers’ compensation compared rate increases for automobile compensation insurance. with insurers tied to large industrial casualty coverage due to previous Insurance The life insurance market increases that it considered groups. Life insurance gross International stabilized in 2000, after several premiums totaled € 121 million, excessive. In addition, the Italian Insurance years of sustained growth. Market antitrust authority levied fines on a decrease of 4% that was in line Asset growth in 1999 was largely insurers for price fixing. The Italian Management with the market trend. fueled by the large number of government order was formerly Net cash earnings from property Results policyholders who transferred contested with the European and casualty operations totaled their invested assets to more Commission and was also Other € 18 million, compared with attractive products, a brought before the European Information € 8 million in 1999. Net cash phenomenon that was much Court of Justice in an industry- earnings from life insurance less widespread in 2000. wide suit. The final outcome of operations were stable at For AXA Seguros, Portugal’s this judgment is pending. € 7 million. leading traditional insurer and Although the life insurance number four if bankinsurance is market continued to expand in The outlook in 2001 included, the year was devoted 2000, growth did not match the AXA Seguros will focus on to the merger with the Guardian 1999 level. Unit-linked and index- Royal Exchange branch office in profitability, and will continue to linked products accounted for 70% Portugal. The IT migration was invest in information technology to of new business, the lion’s share completed and the entire range reduce future costs and broaden earned primarily by the banking of property and casualty and life the services it offers its customers. channels and financial networks. insurance products was restructured and harmonized. The company also launched a strategic reorganization of its 2000 (in euro millions) Life Property Total products and organization around and casualty customer needs and service. Gross premiums Operations were restructured into Spain 420 897 1,317 profit centers and brokers were Portugal 121 304 425 invited to participate in a course Italy 390 1,038 1,428 Contribution to net cash on AXA management values, earnings with the aim of strengthening the Spain 14 6 20 company’s partnership with these Portugal 71826 key market players. Italy 44 (66) (22)
43 A company that is closer Life insurance gross premiums TURKEY to its customers totaled € 390 million in 2000, a The government’s AXA Assicurazioni continued to 14% increase over the previous inflation reduction restructure. Significant year. Net cash earnings increased program and the resulting drop € achievements in 2000: 75% to 44 million, compared in interest rates eased credit and € The entire range of property with 25 million in 1999, stimulated auto sales, as well as and casualty products was primarily due to an improved creating a positive environment unified, in terms of content and underwriting margin. for insurance market growth. branding. For the first time ever, AXA Oyak’s property and casualty AXA Assicurazioni was able to The outlook in 2001 gross premiums rose by 56%, offer a complete line of property The Italian subsidiary is pursuing strengthening its position as the and casualty products under a three priority objectives this year: leading non-life insurer in the single brand name. Complete its regional Turkish market. Information systems were restructuring process and The 44% increase in life insurance harmonized. operationalize the Milan, Rome gross premiums was driven by New technology tools and Turin units. the development of life products designed to speed up claims Develop synergies between with savings features, sold handling and settlement were the agency force and the through the company’s recently rolled out. network of AXA SIM financial constituted specialized salaried The network was further advisors, whose number will sales force. The full impact of this optimized through the grouping increase substantially. initiative, which is intended to and rebranding of smaller Cooperation between the two build customer loyalty and agencies. The Italian subsidiary channels will provide AXA retention rates, should be felt as was one of the first to adopt the Assicurazioni customers with a of 2001. new AXA signage. complete range of financial AXA Oyak’s contribution to AXA’s protection and wealth consolidated net cash earnings The regional restructuring management services. was € 1 million (from life process that will create three insurance operations) and regional head offices – in Milan, Optimize all computerized € 9 million (from property and Rome and Turin – was formally information flows between the casualty operations). launched. company and its network. Property and casualty gross premiums rose by 15% to € 1,038 million. Net cash earnings were adversely affected by the 2000 (in euro millions) Life Property Total aforementioned freeze in and casualty premium rates, the strengthening Gross premiums of insurance reserves due to a Turkey 40 252 292 deterioration in the automobile Morocco 69 139 208 Contribution to net cash claims ratio, and a higher earnings average bodily injury claims Turkey 1910 settlement level. Morocco 2 (14) (12)
44 Efforts made to improve LEBANON The property and casualty The AXA underwriting results partially offset The Group operates insurance market in Cameroon, Group lower net investment results. Ivory Coast, Gabon, Conakry in Lebanon through Operations These efforts will improve AXA a majority equity interest in AXA Guinea, Senegal and Togo; Oyak’s competitive positioning in Middle East, a property and The life insurance market in Operating Highlights the current domestic business casualty insurer that does Cameroon, Ivory Coast, Gabon climate. significant business in personal and Senegal. Financial Highlights lines and commercial insurance. AXA does not consolidate these MOROCCO The company recently began to equity interests. Insurance In 1999, the merger develop life insurance business International between AXA and with the same customer Insurance ONA, Morocco’s leading private segments. Asset business group, resulted in the Management creation of AXA-ONA, a holding Presence in Sub-Saharan Results company in which AXA owns Africa 51% to ONA’s 49%. In 2000, After completing a financial Other the ONA subsidiary Compagnie reorganization in 1999 and Information Africaine d'Assurances and the redefining its operating scope in AXA subsidiary AXA Al Amane 2000, the AXA Group is now combined their operations to present, via majority or significant form AXA Assurance Maroc. The equity interests, in the following new unit is the second largest segments and countries: property and casualty insurer in Morocco, with market share of 21%, and plans to extend its 7:38 a.m. business operations to the life Istanbul airport insurance segment through distribution agreements with banking and other partners. Property and casualty gross premiums were up by 4.1% in 2000, to € 139 million. Life insurance gross premiums totaled € 69 million, a 9% increase compared with 1999. The Karen, 37 decline in net cash earnings versus the previous year was Airport, meeting, return: everything primarily due to a valuation is timed down to the minute. I can’t afford allowance established in respect ‘‘ of non-consolidated equity to be delayed by lost or stolen luggage. investments. ’’
45 provider of financial protection the reorganization into a single NORTH AMERICA and wealth management services structure of the teams charged UNITED STATES rather than simply a life insurer. with selecting and monitoring This market, which In 2000, this change was reflected the mutual funds manufactured alone accounts for in a number of initiatives by other suppliers and sold by more than one-fourth of world designed to: AXA. life insurance premiums, is Better meet customer needs, Develop a new financial experiencing steady growth, including the national roll-out services portal, which is currently of the AXA Asset Account. driven by key market forces: being tested in a number of This account enables customers An aging population with regional pilot programs. The new to pool their financial holdings more complex financial needs portal offers enhanced services in a single consolidated account, An increasing amount of wealth and information to customers, thereby providing constant that customers have at risk prospects and AXA Advisors visibility and efficient management An increasingly sophisticated financial planning professionals. of their entire financial position. retail investment population that Significant investments have By the end of 2000, 30,000 AXA is demanding trusted advice and also been made in other areas of Asset Accounts had been opened, customized, complete solutions. information technology, including representing over US$3 billion in market-leading financial planning Financial Protection and total assets – considerably more and customer relationship Wealth Management than initially forecast. management tools. To transform these market forces Improve the product offering, into business growth opportunities, to meet a broader range of Broadened Distribution AXA Financial launched a strategic customers’ financial needs while and Open Architecture transformation in 1998 aimed at at the same time improving AXA Financial has continued making the company a major efficiencies. One example was to pursue two major initiatives intended to expand distribution and strengthen the relationship with the customer: The financial planning project that began as a pilot in Texas in 1998 has been rolled out 1:50 p.m. to the entire network of AXA New York Advisors financial planners. The financial planning center in Atlanta, Georgia has provided 370,000 hours of training, Eddie, 32 leading to the accreditation of For me, trust is indispensable in a relationship: more than 4,000 financial planning professionals. An I‘‘ need to know that my financial advisor can keep advertising campaign was her promises. conducted to showcase these financial planning professionals ’’ and to build awareness of the AXA brand.
46 Continued expansion of improve AXA’s ability to seize net cash earnings was €405 The AXA third-party distribution to include growth opportunities in the US million, up 50.7% compared with Group securities brokers, independent market and (iv) enhance synergies 1999. This improvement is Operations financial advisors and banks. This within the Group. primarily attributable to strong is a core part of AXA Financial’s growth in fees earned on Operating Highlights open architecture approach of Strong rise in earnings separate account products, offering its products through contribution improved profit margins on Financial Highlights third-party distribution, and Gross premiums rose by 4.1% in service businesses, and selling third-party products 2000 to €12.5 billion, reflecting appreciation of the US dollar. Insurance through its own distribution. strong growth in the first half of For information on the International the year followed by a slowdown operations and results of AXA Insurance Refocusing on core brought on by uncertainty due to Financial subsidiary Alliance businesses Asset financial market volatility. Variable Capital Management, as well as Management AXA completed two major life and annuity sales (65% of on its acquisition of Sanford C. financial transactions in the United Results gross premiums) increased by Bernstein, see the Asset States in 2000, aimed at refocusing 1.4%, helped by the success of Management Segment chapter Other on its core financial protection and products with new features and of this report. Information wealth management businesses: continued sales growth in third- The sale of AXA’s 71% interest party distribution channels (up The outlook in 2001 in Donaldson, Lufkin & Jenrette 13%). Gross individual life Despite recent financial market to the Credit Suisse group in insurance premiums rose by volatility, long-term trends for US November 2000. Disposing of 2.4%. Gross premiums from other life insurance and wealth this non-core business improves products increased by 121% management continue to be AXA’s earnings stability and gives to US$402 million (€436 million) positive. AXA Financial’s strategic it greater financial flexibility. in 2000 (versus US$181 million repositioning in financial AXA’s buyout of the minority (€170 million) in 1999. Other protection and wealth interests in its subsidiary AXA important products include third- management, coupled with the Financial. This transaction, party asset management and actions in 2000 to increase the which was contingent on the mutual fund sales. focus on these core businesses, conclusion of the aforementioned The US life insurance group’s position AXA Financial to continue sale of DLJ, gave AXA full contribution to AXA’s consolidated to grow its strong franchise. ownership of its US subsidiary, in which it previously had a 60.3% equity interest. The transaction 2000 was completed at the end of (in euro millions) Life Property Total December 2000 and AXA and casualty Gross premiums Financial was delisted from the United States 12,483 - 12,483 New York Stock Exchange on Canada 45 663 708 January 2, 2001. This transaction Contribution to net cash is expected to (i) increase the earnings contribution of US life insurance United States 405 - 405 and asset management operations Canada 42227 to AXA’s consolidated net income, (ii) support AXA Financial’s business development, (iii)
47 connection with the AXA Group’s customer commitment program. Distribution: the development of alternative channels giving customers access to the company via multiple points of entry. To boost brand awareness and convey its level of commitment 11:15 a.m. to customers, the company also launched the biggest advertising Kathleen and Edward Boston campaign in its history in 2000. AXA Canada’s contribution to Today a home, tomorrow a baby. AXA’s consolidated net earnings € To achieve these dreams and manage in 2000 was 22 million ‘‘ (property and casualty insurance) our savings, we need new solutions. and € 4 million (life insurance).
’’ The outlook in 2001 AXA Canada faces increasingly stiff competition and the threat € CANADA 700 million. Earnings also of a slowdown in the North Persistent and intense improved, due to the pursuit of a American economy. However, competition, highly selective risk underwriting the company’s core strengths – combined with the multiplication policy, higher gross premiums, significant business volume, of alternative distribution and a reduction in administrative the quality of its teams, and its channels in recent years, has costs. recently modernized technology squeezed profit margins in the Several major enhancements infrastructure – should enable Canadian property and casualty were made in 2000, including: continued growth. market for many years. Under Ongoing IT investments and these circumstances, AXA stepped-up implementation of a Canada’s operating performance single information systems SOUTH AMERICA was impressive in 2000. Premium platform: AXA Canada will growth in its property and eventually have the most modern AXA is present in Brazil, Chile, casualty business, which IT capability in the Canadian Argentina and Uruguay. All accounts for 94% of its portfolio, insurance industry. operating units have adopted was moderate due to the New technology: the rollout of the AXA name. These subsidiaries company’s decision to cease an Intranet site and preparations are not consolidated. underwriting certain types of for the launch of an Internet site risks. Over the same period, life insurance gross premiums featuring an extranet for the increased by 17%, primarily distribution network. driven by universal life insurance Several marketing initiatives sales. aimed at improving the quality Overall, gross premiums rose by of AXA Canada’s service delivery 3% over 1999, to more than to brokers and policyholders in
48 AXA Australia and AXA New creation by AXA Asia Pacific ASIA PACIFIC The AXA Zealand posted a 22.6% rise Holdings and Alliance Capital Group AUSTRALIA AND in gross insurance premiums, Management of two companies Operations NEW ZEALAND to € 2.4 billion. This increase is dedicated to asset management, AXA Australia and chiefly attributable to growth Alliance Capital Australia and Operating Highlights AXA New Zealand are in retirement savings premiums Alliance Capital New Zealand, active in the life (34%) due to a more competitive should enhance the competitive Financial Highlights insurance, pension product offer and enhanced positioning of AXA’s insurance fund and health insurance customer service. Sales of single companies in Australia and Insurance markets, all of which experienced premium contracts rose by 56%, New Zealand. International strong growth in 2000. The most while sales of recurring premium Insurance spectacular gains were in the contracts were up 68%. Health JAPAN Asset health insurance market, primarily insurance gross premiums In 2000, the Japanese Management due to government incentives increased by 9.2%. AXA Australia life insurance and Results encouraging consumers to take is the country’s third largest health retirement savings market was out private medical insurance, insurance provider, with market shaken by several well-publicized Other which have boosted the share of 10.6%. The contribution bankruptcies on the part of Information percentage of Australians with of AXA Australia and AXA New insurers plagued by a growing private medical coverage from Zealand to AXA’s consolidated net gap between the high prospective 30% to 45%. cash earnings decreased by 44.7% yields sold to policyholders before Several smaller businesses were to € 17 million. The € 30 million the financial bubble burst and the sold in 2000 as the two units contribution reported in 1999 current low yields on assets. sought to refocus on their core reflected an exceptionally high Moreover, between April and business. Excluding restructuring capital gain. The expense ratio September 2000, the Nikkei stock costs, operating expenses were improved, falling from 16.4% index fell by 22.5%. AXA fared reduced. After posting losses for to 14%. well in Japan despite this difficult two years in a row, the personal operating environment, as the protection business was close to The outlook in 2001 integration of AXA Life Japan and breakeven in 2000. Contracts In a regulatory environment that Nippon Dantai led to a series of were redefined and premiums remains favorable to pension notable successes. New business brought into line with risks. An fund growth, AXA Australia and (as measured by insured sums) online services strategy targeting AXA New Zealand expect to grew by 43.6%, and AXA Japan customers and financial advisors continue improving sales undertook a vast restructuring of was defined and rolled out. performance in this market and its portfolio of invested assets in A major three-year transformation in the individual savings market line with AXA Group policy. AXA’s program was initiated, with five while completing their life insurance operations received goals, namely to double the restructuring program. The joint an AA- rating from the Japanese value of new business, increase market share, reduce the management expense ratio by 2000 50%, and make a considerable (in euro millions) Life Property Total and casualty improvements in both the quality Gross premiums of service provided to financial Australia & New Zealand 2,399 - 2,399 advisors – who account for 85% Contribution to net cash of AXA’s distribution capability – earnings and staff satisfaction. Australia & New Zealand 17 - 17
49 agency Rating and Investment increase in sales, with the The formerly closed health care Information and an A+ rating development of the Internet market will be opened to Japan’s from Standard & Poor’s – channel and “iMode” creating a seven largest life insurers in 2001. important selling points in the positive growth environment. In Authorization to sell tax-exempt Japanese environment – putting addition, AXA Direct and AXA insurance products in connection them just behind Nippon Life in Nichidan are planning to pool with 401k type retirement funds terms of ratings. Finally, in an their resources to promote sales (defined-contribution pension effort to improve customer of property and casualty products plans). relationships, a number of call to small- and mid-sized businesses Authorization to engage in centers were set up, giving clients and large corporations. Property life/non-life cross-selling. ongoing, direct access to their and casualty operations reported contracts. a net loss of € 58 million in 2000. AXA Nichidan (recently renamed In 2001, competition is expected AXA Insurance) recorded life The following three to intensify as Japan’s seven achievements were shared insurance gross premiums of largest life insurers gain entry by all of AXA’s Asian € 3,353 million in 2000, a 12% property and casualty to the supplementary health increase over the previous year. insurance companies insurance market, from which Premium growth was primarily in 2000: they were previously barred. due to the conclusion of a large The integration of former group insurance contract, and Guardian Royal Exchange units The outlook in 2001 also to the success of a new life (Hong Kong, Indonesia, insurance product launched in July. AXA plans to continue initiatives Singapore and Thailand) was Net cash earnings rose launched in 2000 aimed at successfully completed. substantially, from a net loss of adapting its product lines and Operating performance € 28 million in 1999 to net training the sales force as it objectives were achieved despite income of € 52 million in 2000. prepares to fully capitalize on intense competition in non-life AXA Direct recorded a strong pending market deregulations: markets. A global project was initiated in the region, aimed at positioning the target property and casualty lines (personal insurance, health insurance and coverage for small- and mid-size businesses) in their respective markets. It includes 10:30 a.m. the development of a regional Hong Kong support services platform and the identification of alternative Alex Wong, 45 distribution channels. One of the key objectives of the project is to You can’t always think of everything. enable local agency professionals It would‘‘ be great if my insurer went over issues to focus on areas where they add value. AXA operating units in like retirement funds or group insurance with me Hong Kong, Malaysia and from time to time. Singapore will take part in the first ’’ phase. 50 HONG KONG SINGAPORE CHINA The AXA The Hong Kong life In 2000, the recovery AXA Minmetals, a joint Group venture of AXA (51%) insurance market was of AXA Life Singapore’s Operations driven by growth in unit-linked life insurance business, which and its Chinese partner Minmetals product sales and the began in 1999, was confirmed, (49%), is developing life insurance Operating Highlights government’s decision to launch with the 54% increase in gross business in Shanghai, where it compulsory supplementary premiums attributable in began operations in 1999. It has Financial Highlights pension funds (Mandatory particular to the success of applied for a second life insurance Provident Funds). AXA China products it co-markets with license and continues to search for Insurance Region, which was elected the banking partners. The expected new business locations. International best insurer in Hong Kong by deregulation of the life insurance Insurance Capital, a well-known local market, which failed Other operating Asset business publication, was one to materialize in 2000, may occur units Management of four companies selected by in 2001. If it does, AXA Life The Group also operates in the Results the Hong Kong regional Singapore would be able to set following countries: government to offer pension up new distribution networks. Indonesia, through AXA Life Other funds to its 29,000 civil servants. AXA General Insurance Singapore Indonesia, its 80%-owned life Information A decline in the number of tied currently ranks among the top insurance subsidiary, and General agents slowed business growth three property and casualty Insurance, a property and but had little impact on gross insurers in Singapore, with casualty insurer; premiums, which remained market share of 7%. Despite Malaysia, through AXA stable in 2000 at € 837 million, intense competition, the Assurance Malaysia; while the 57% increase in net company returned to profitability The Philippines, through income (to € 43 million) was thanks to a combination of Philippine AXA Life, in which AXA primarily due to the buyout of reorganization, cost cutting Asia Pacific Holdings has a 45% AXA China Region’s minority measures and efforts to develop equity interest; interests in December 1999. customer service. Thailand, through Krungthai AXA General Insurance Hong AXA Life, a life insurance joint Kong – number 5 in the Hong venture held by AXA Asia Pacific Kong property and casualty Holdings and Krungthai Bank, market – reported gross and AXA Insurance, a property premiums of € 96 million and casualty insurer. primarily due to the full-year consolidation of former Guardian 2000 Royal Exchange business. (in euro millions) Life Property Total and casualty Gross premiums The outlook in 2001 Japan 3,353 26 3,379 The implementation of Hong Kong 837 96 933 mandatory pension funds is Singapore 127 59 186 China 4-4 expected to have a positive Contribution to net cash impact on business development earnings in 2001. Japan 52 (58) (6) Hong Kong 43 7 50 Singapore 21 3 China (2) - (2)
51 International Insurance Segment
The international insurance segment is comprised of AXA Corporate Solutions, which includes reinsurance, large risks and AXA Assistance. Gross premiums rose by 10.5% in 2000, reaching € 3.6 billion.
AXA Corporate Like all AXA subsidiaries, AXA Solutions Corporate Solutions has opted The alignment undertaken in late to organize its operations around 1999 between AXA Re, AXA customer needs, offering the Global Risks and AXA Cessions latter a single point of entry to was completed in 2000 with the the AXA Group. Formerly establishment of AXA Corporation organized along business lines, Solutions. This operating unit, the company is now positioned which specializes in covering risks as a full service provider, offering William, 42 that cannot be pooled at the global solutions to client domestic level, works mostly segments. The reorganization, through brokers, servicing conducted in close cooperation corporate clients with with clients, enables AXA international, complex or highly Corporate Solutions to offer specialized coverage needs. customized coverage solutions in line with client risk management strategy. Each corporate client now has a designated account 8:30 a.m. manager who is able to mobilize Philadelphia expert skills from across the Group. Teams work in lateral My business is always changing. fashion, developing tools available for use by all, such as I expect my insurer to help me anticipate ‘‘ a worldwide database for risks so I can make sound decisions. underwriting that is currently being developed. ’’ Business conditions were favorably impacted by two factors
52 in 2000: the absence of large risk underwriting policy and a AXA Assistance The AXA catastrophe claims and 15% strategic decision on the part of Number two in the world Group appreciation of the US dollar, AXA Corporate Solutions to favor assistance market with market Operations which has a significant impact profitability over volume. share of approximately 15%, on this business, much of which Consequently, AXA Global Risks AXA Assistance is present in 38 Operating Highlights is conducted in the dollar zone. decided to reduce premiums countries. Within the framework AXA Corporate Solutions written in the United Kingdom of its international development Financial Highlights consolidated gross premiums (by 52%) as well as in the United strategy, AXA Assistance entered totaled € 3.3 billion in 2000. States (by 72%), two markets in into an exclusive partnership Insurance Gross premiums recorded by AXA which the Group terminated agreement with the official International Corporate Solutions Reinsurance several large account clients government travel agency of Insurance the People’s Republic of China increased significantly, and that were not profitable. The Asset recovery in the automobile contribution of the insurance in 2000. Under the terms of Management the agreement, AXA Assistance portfolio suggests that a return business to AXA Corporate Results to profitability is possible in 2001. Solutions’ consolidated net officially established a subsidiary Gross premiums recorded by AXA earnings, which was a loss of in Beijing in early 2001. In Other Information Corporate Solutions Reinsurance € 151 million in 1999, was a addition, AXA Assistance has recently opened alarm centers totaled € 2.1 billion in 2000, much smaller loss of € 17 million in Canada, Chile, Morocco, the a 34.1% increase versus the in 2000. Czech Republic, Indonesia and previous year, primarily attributable Overall, the contribution of AXA Australia. to a significant rise in property Corporate Solutions to AXA’s In addition, AXA Assistance reinsurance premiums as AXA consolidated net earnings in completed its process of Corporate Solutions took 2000 was € 130 million, decentralizing into five separate advantage of recovery in market compared with a net loss of regions located in Tokyo, rates. The exceptionally high € 60 million in 1999 (on a Chicago, London and Paris. number of large claims in 1999 constant structural basis). All are operational. halted the persistent decline In its strategic medical assistance in rates that has hampered Outlook in 2001 business, AXA Assistance growth for several years. In Life The year will be primarily devoted broadened its target by Reinsurance, which accounts for to developing business asset distributing a computerized 5.4% of total premiums, sales of liability management via AXA sorting/referral product that the ABR (Asset Based Reinsurance) Liabilities Managers. The current enables large European social product continue to increase in recovery in the reinsurance security providers to rapidly orient France and the United States. market is expected to extend to patients. The company provides The contribution of the the large insurance risks market. the software and user training reinsurance business to AXA Coupled with the business and ensures product Corporate Solutions’ consolidated recovery plan adopted by AXA maintenance. net earnings was € 133 million Corporate Solutions, this In addition, the acquisition of in 2000, compared with improvement in market EMC (Emergency Medical Care) € 99 million in 1999. conditions should enable the has enhanced its medical Gross insurance premiums company to continue to achieve engineering capability. Now (formerly AXA Global Risks) satisfactory earnings growth, available to all AXA Assistance decreased by 15.6% to barring the occurrence of major operating units worldwide, EMC € 1.1 billion, due to a selective claims. provided emergency room
53 equipment and post-op recovery by 12.4% versus 1999 to facilities for clinics set up by € 329 million. Most of this corporations for their expatriate growth was provided by staff in Nigeria, Congo, Algeria operations in Europe, South and Chernobyl in 2000. Medical America and Japan. engineering services the needs The contribution to AXA’s of corporate clients – mostly in oil consolidated net income drilling and civil engineering – that increased from € 14 million in routinely expatriate employees to 1999 to € 22 million in 2000. work on short-term assignments, as well as the local subsidiaries Outlook in 2001 of foreign firms. AXA Assistance has established It encompasses all aspects of two priorities in 2001: medical care, from infirmary Develop healthcare related design to the development of business emergency procedures and Bring recently established units the provision of trained medical to full maturity. personnel. In the field of technical assistance, AXA Assistance also offers services Catherine and Jean-Marc that supplement motor insurance contracts in Japan. It currently leads the Japanese market, providing assistance coverage for more than 8 million vehicles, 7% of the total number in circulation. As part of its quest for ongoing improvements in service quality, AXA Assistance obtained ISO 9002 certification for its 1:20 p.m. operations in Brazil, Spain and The Rockies Taiwan. Units in Belgium, France, the Netherlands, Poland, the He wants to take a trip around United Kingdom and Malaysia have obtained ISO 9001 ‘‘the world; I want to be reassured. He needs certification. AXA Assistance Brazil complete and effective medical assistance. was voted the round-the-clock assistance provider of the year by How do we choose? the Brazilian National Insurance and Personal Protection academy. ’’ In 2000, revenues increased
54 The AXA Asset Management Group Operations
Operating Segment Highlights Financial Highlights
The Asset Management Segment, which includes third-party Insurance management as well as asset management on behalf of AXA International insurance subsidiaries, recorded consolidated revenues of Insurance € Asset 2.98 billion in 2000, an increase of 21.3% compared with Management 1999. The segment contributed 8% of AXA’s consolidated net income. Assets under management totaled € 892 billion Results at year-end 2000. Other Information
The world’s financial markets underscores the value of profes- The year 2000 was a year of were highly volatile throughout sional investment management positive net inflows. Mutual funds much of 2000. Growth stocks, services. and separately managed accounts particularly in the areas of high The asset management market sales were strong. tech, media and communications, experienced a period of intensive In addition, a significant amount peaked at the end of the first consolidation, particularly in of new institutional mandates quarter before plummeting, Europe and the United States were won, and Alliance Capital leading to a strong recovery in anticipation of the expected outperformed the benchmark in in value stocks at the end of the convergence in the world’s asset its principal investment categories. year. The decline in the equity management and financial Despite a market-driven decline in markets over the year, coupled services markets. assets under management in the with fears of a slowdown in fourth quarter of 2000, Alliance the US economy, encouraged Alliance Capital Capital remains optimistic about investors to adopt a more Management its outlook, and will continue to conservative approach to equities. Alliance Capital, a 53% owned select investments aimed at However, the fundamental need subsidiary of AXA Financial, achieving its long-term business for individual savers to set aside is a leading US investment objectives. funds to supplement their pension management firm. It offers a entitlements has not been called wide range of investment A major acquisition into question, and the current capabilities and products to A highlight of the year was investment climate has not institutional clients, high net the fourth-quarter acquisition of prevented the development of worth individuals and retail the New York based value fund mutual fund products. Moreover, investors. manager Sanford C. Bernstein the market volatility observed in At December 31, 2000 assets for approximately US $3.5 billion: 2000, which continued into under management reached US $1.5 billion in cash and the the first quarter of 2001, merely € 483 billion. issuance of 40.8 million Alliance
55 Capital units. Sanford C. Bernstein sale, Sanford C. Bernstein had improvement in the ratio of is one of the leading high net assets under management general expenses to net revenues, worth individual asset managers valued at € 90 billion. and the contribution of Sanford with internationally renowned C. Bernstein (€ 25 million). sell – side research capabilities. Two new companies The integration of Sanford AXA Asia Pacific Holdings and Outlook in 2001 C. Bernstein provides Alliance Alliance Capital Management Alliance Capital will complete Capital with: entered into an agreement in the integration of Sanford access to 15,000 high net October 2000 to form two C. Bernstein, whose value oriented worth clients, currently the most funds management businesses products will complement its promising client segment in the in Australia and New Zealand. own growth oriented products US financial services industry; Alliance Capital Australia and to enhance the overall product the expertise of one of the Alliance Capital New Zealand mix available to Alliance Capital’s largest value equity managers; have been operating since the retail, institutional and high net a research capability that is first quarter of 2001. AXA Asia worth clients. Alliance Capital will internationally recognized for its Pacific Holdings is responsible continue to invest selectively in its independence and quality. Since for retail investment business long-term growth by seizing Sanford C. Bernstein is not an development, marketing and attractive opportunities. investment bank, it is not involved distribution, while Alliance Capital in the issue of securities. handles fund management, AXA Investment operational management of The alignment will also promote Managers the new units, and relations with the development of cross-selling After two full years devoted to institutional investors. The aim between Sanford C. Bernstein, considerable restructuring and of this venture is to fully leverage Alliance Capital and AXA to integrating AXA’s asset Financial. The 7,500 financial AXA’s growth opportunities in management businesses in planning professionals of AXA Australia and New Zealand. Europe and Asia, AXA Investment Financial will be able to offer Managers focused on delivering Sanford C. Bernstein products to Strong earnings growth scalability of existing core activities their clients, while the latter’s high for Alliance Capital and developing new activities in net worth clients will have access On a constant structural basis, 2000. The consolidation of the to AXA Financial’s life insurance Alliance Capital’s revenues global investment process was products. increased by 19.7% in 2000 completed, making full use of The transaction was completed due to growth in average assets AXA IM’s multi-local capabilities. on October 2, 2000, and Sanford under management (21%) and C. Bernstein is consolidated as a more profitable product mix. Strong business growth of this date. The two companies, The net income contribution The main thrust of AXA Investment which are in the process of of Alliance Capital to AXA’s consoli- Managers’ development strategy merging their operations, will dated net income increased by is to expand third-party asset adopt the Alliance Capital name. 115% versus 1999, to € 160 management business, and year As a result of this transaction, million, primarily attributable to 2000 targets were met. AXA IM AXA Financial’s equity interest in the higher revenues resulting was highly successful in retail Alliance Capital was reduced from from growth in average assets fund sales through AXA Group 56.7% to 53%. At the time of the under management, an distribution channels, particularly
56 in the employee savings business. The AXA New money in AXA Group Group insurance funds remained Operations positive due to the early transfer of GRE funds in January and new Operating Highlights money in AXA Ireland and AXA IM Germany, the management of Financial Highlights the AXA Nichidan funds by AXA IM Tokyo, and the transfer of AXIVA 4:40 p.m. Insurance funds and Spanish portfolios to Miami International AXA IM Paris. AXA Investment Martha, 72 Insurance
Managers was awarded its first Asset institutional mandates in Germany I want to grow my savings, Management and Benelux. but there are so many products and Results At December 31, 2000, overall ‘‘ assets under management had Other they seem to change all the time. I need Information € risen to 255 billion. an advisor I can trust to help me make Product innovations were numerous: the right choices. Four Multi Manager funds were launched in the UK, and ’’ a £900 million multi-manager program was awarded to
AXA IM UK. Fixed-income & structured management, which has already The introduction of the Sun products received several awards led to improved sales processes; Life Global Portfolio range, for Bond Funds in France, from customized and innovative strengthening the offshore fund La Vie Financiere in February, products; measurement of range. and eight from Investir magazine customer satisfaction; and in December. AXA IM Paris won The introduction of two ensuring that resources are structured credit products the ‘Laurier d’Or’ from Investir constantly aligned with individual (collateral debt obligations), magazine for the second year in a row for the performance of its client needs. one in Europe and one in Asia. mutual fund range over five years. AXA Investment Managers In Hong Kong, AXA IM reported revenues of € 383 participated in the launch of Making customer intimacy million in 2000, an increase of the AXA Group products for the a reality 34% compared with 1999 new Mandatory Provident Fund In line with AXA’s commitment to attributable to growth in average marketplace. building organizations around assets under management (17%) AXA Rosenberg continued to customer needs, AXA Investment and higher fee income due to develop its distinctive quantitative Managers launched an action products, and added several plan covering five priority issues: an increase in the percentage of major new clients at the end of information management; unit-linked products in its overall the year. customer relationship product mix.
57 Its contribution to AXA’s on its core financial protection consolidated net income and wealth management increased by 108% to business, which is expected to € 48 million, versus € 23 million experience significant growth in in 1999. The principal factors the years to come. In addition, behind this growth were a tax this divestiture reduces AXA’s savings that resulted from tax exposure to the earnings volatility consolidations in France and which is inherent in the the United Kingdom and the investment banking business. increase in AXA’s ownership in For the nine months ended AXA Investment Managers UK September 30, 2000, DLJ following the buyout of minority reported revenues of interests. € 10.7 billion.
Outlook in 2001 In 2001, operational scalability, ongoing development of client intimacy and further innovation are major goals for AXA IM. AXA IM plans to build on its existing institutional and retail client base 10:45 a.m. Antwerp by continuing to offer targeted solutions. The Private Equity business will see the launch of a second generation of funds.
Other Financial Services AXA sold Donaldson, Lufkin & Jenrette, a subsidiary of AXA Financial, to the Credit Suisse Patrick, 45 group on November 3, 2000. This transaction is in line with Retirement, time for new projects… AXA’s strategic decision to focus ‘‘Not the time to come up short financially. I need to start planning now. I think I’ll talk to my financial advisor.’’
58 The AXA Consolidated Group Operations
Operating Statements of Income Highlights Financial Highlights
Insurance
International (in euro millions except per ordinary share amounts) Insurance
2000 1999 1998 Asset Management Gross written premiums and financial services revenues 79,971 66,528 56,697 Results Change in unearned premium reserve (439) 9 32 Net investment results 20,863 15,630 14,067 Other Total revenues 100,395 82,167 70,797 Information
Insurance benefits and claims (67,564) (56,681) (49,819) Reinsurance ceded, net 1,000 808 381 Insurance acquisition expenses (6,274) (5,616) (4,920) Bank operating expenses (6,509) (5,286) (4,488) Administrative expenses (11,871) (10,577) (8,141)
Income before tax expense 9,176 4,816 3,810
Income tax expense (2,773) (1,292) (1,223)
Income after tax expense 6,403 3,524 2,588
Equity in income of unconsolidated entities (23) (10) 11
Total net income 6,380 3,513 2,599
Amortization of goodwill, net (353) (634) (93) Minority interests (2,124) (858) (974)
NET INCOME 3,904 2,021 1,531
Impact of exceptional operations 1,643 156 -
NET INCOME EXCLUDING EXCEPTIONAL OPERATIONS 2,261 1,865 1,531
Net income (excluding exceptional operations) per ordinary share (diluted) 5.69 4.98 4.24
Amortization of goodwill (Group share) (279) (180) (87)
NET CASH EARNINGS 2,540 2,045 1,618
Net cash earnings per ordinary share (diluted) 6.38 5.46 4.48
59 Consolidated Balance Sheets
(in euro millions) ASSETS 12.31.2000 12.31.1999 Gross Depreciation and Net Net Amortization Goodwill 17,417 (1,552) 15,865 2,789 Investments in companies accounted for by the equity method 1,217 1,217 1,408 Fixed maturities 135,528 (153) 135,375 125,135 Equity investments 50,497 (510) 49,987 40,779 Mortgage, policy and other loans 32,905 (433) 32,472 23,921 Real estate 13,127 (1,183) 11,944 12,864 Assets allocated to UK with-profit contracts 25,111 25,111 25,332 Separate Account assets 117,261 117,261 109,647 Trading account securities 5,249 5,249 31,286 Securities purchased under resale agreements 2,093 2,093 32,345 Total investments 382,988 (2,279) 380,709 402,716 Accrued investment income 3,986 3,986 3,245 Broker-dealer related receivables 73 73 44,689 Deferred acquisition costs 8,154 8,154 7,782 Valeur of purchased business inforce 4,326 (602) 3,724 2,438 Other assets 38,553 (2,513) 36,040 29,692 Cash and equivalents 26,065 26,065 14,130 TOTAL 481,562 (6,946) 474,616 507,480
60 The AXA Group Operations
Operating Highlights
Financial Highlights
Insurance
(in euro millions) International LIABILITIES 12.31.2000 12.31.1999 Insurance Asset Shareholders' equity 3,809 3,260 Management Capital in excess of nominal value 12,379 5,350 Results Retained reserves and earnings 4,230 5,726 Other Income of the period 3,904 2,021 Information Group share in shareholders' equity 24,322 16,358 Minority interests in reserves 1,578 6,596 Minority interests in income of the period 2,124 858 Total shareholders' equity 28,024 23,812 Mandatorily convertible bonds and notes 192 474 Subordinated debt 8,261 4,832 Provision for restructuring and other charges 11,530 8,730 Future policy benefits and other policy liabilities 182,896 145,648 UK with-profit contract liabilities 25,111 25,332 Separate Account liabilities 117,377 109,001 Insurance claims and claims expenses reserve 39,243 37,703 Unearned premium reserve 6,783 6,263 Insurance reserves, net of reinsurance 371,410 323,947 Financing debt 9,201 5,419 Operating debt 4,445 11,684 Securities sold under repurchase agreements 1 56,199 Broker-dealer related payables 279 37,055 Accrued expenses and other liabilities 41,273 35,327 TOTAL 474,616 507,480
61 Other Inf
Patricia, 39 9:53 a.m. Strasbourg Relocating always involves reorganization: ‘‘ a new house, school, sales people... I would like my insurer to help me find healthcare providers in my new neighborhood.’’
62 The AXA Group Operations
Operating Highlights
Financial ormation Highlights Insurance
International Insurance
Asset Management
Results
Other Information
63 Simplified Organization
Insurance
Europe Americas Africa
AUSTRIA ITALY ARGENTINA CAMEROON AXA NORDSTERN AXA ASSICURAZIONI AXA SEGUROS AXA ASSURANCES COLONIA AXA VIE LUXEMBOURG BRAZIL BELGIUM AXA LUXEMBOURG AXA SEGUROS GABON AXA ROYALE BELGE AXA ASSURANCES NETHERLANDS CANADA AXA VIE FRANCE AXA VERZEKERINGEN AXA ASSURANCES AXA ASSURANCES AXA INSURANCE IVORY COAST AXA COURTAGE PORTUGAL AXA ASSURANCES AXA CONSEIL AXA SEGUROS CHILE AXA VIE DIRECT ASSURANCE AXA SEGUROS JURIDICA SPAIN MOROCCO MAXIS AXA SEGUROS UNITED STATES AXA ASSURANCE MAROC DIRECT SEGUROS AXA FINANCIAL GERMANY AXA COLONIA SENEGAL SWITZERLAND URUGUAY AXA NORDSTERN ART AXA ASSURANCES AXA ASSURANCES AXA SEGUROS SICHER DIRECT SENEGAL
TURKEY HUNGARY TOGO AXA OYAK AXA BIZTOSITO UNION DES ASSURANCES UNITED KINGDOM DU TOGO IRELAND AXA SUN LIFE AXA IRELAND AXA INSURANCE AXA PPP HEALTHCARE
The company names indicated above are commercial trademarks and not corporate names. AXA has a controlling interest in these companies (controlling economic interest and/or majority shareholding).
64 The AXA Chart at March 15, 2001 Group Operations
Operating International Asset Highlights Financial Insurance Management Highlights Asia - Pacific and Other Insurance AUSTRALIA MALAYSIA CORPORATE Financial NEW ZEALAND RISKS AND AXA AFFIN Services International REINSURANCE AXA AUSTRALIA Insurance AXA CORPORATE AXA INVESTMENT Asset AXA NEW ZEALAND PHILIPPINES SOLUTIONS MANAGERS Management PHILIPPINE AXA LIFE CHINA AXA REAL ESTATE Results ASSISTANCE INVESTMENT AXA MINMETALS SINGAPORE AXA ASSISTANCE MANAGERS Other AXA INSURANCE ALLIANCE CAPITAL Information HONG KONG AXA LIFE MANAGEMENT AXA CHINA REGION AXA ROSENBERG AXA INSURANCE THAILAND AXA AUSTRALIA KRUNGTHAI AXA FUNDS MANAGEMENT INDONESIA LIFE INSURANCE AXA LIFE AXA INSURANCE Other financial services JAPAN AXA LIFE INSURANCE BELGIUM AXA GROUP LIFE AXA BANK BELGIUM AXA DIRECT FRANCE COMPAGNIE FINANCIERE DE PARIS AXA BANQUE AXA CREDIT
GERMANY AXA COLONIA BAUSPARKASSE
2.9% (4.5%) MUTUELLES AXA 69.6% 77.2% 22.3% (79.4%)* 17.8% (13.4%) (28.6%)* (66.4%) BNP-PARIBAS FINAXA PUBLIC 95.4% (97.1%) 0.3% (0.5%) 1.8% ANF Treasury Stock
(): voting power *: directly and indirectly (equity ownership and voting power)
65 Addresses
DIRECT ASSURANCE Insurance Parc des Fontaines 163-167 Avenue Georges- Clémenceau 92742 Nanterre Cedex EUROPE Telephone: (33) 1 46 14 45 00 Fax: (33) 1 46 14 45 65 Internet: AUSTRIA //www.directassurance.fr/
AXA NORDSTERN COLONIA JURIDICA Uraniastrasse 2 AXA 7 ter Rue de la Porte-de-Buc 1010 Vienna 25 Avenue Matignon RP 931 Telephone: (43) 1 711 50 10211 75008 Paris 78009 Versailles Cedex Fax: (43) 1 711 50 10212 Telephone: (33) 1 40 75 57 00 Telephone: (33) 1 30 97 90 00 Email: E-mail: [email protected] Fax: (33) 1 30 97 90 89 internet: www.axa.com [email protected] Internet: //www.axa-versicherung.at / MAXIS The Chairman’s office 26 Rue Louis Le Grand Group corporate offices 75119 Paris Cedex 02 BELGIUM Telephone: (33) 1 49 49 40 00 Press Information: AXA ROYALE BELGE Fax: (33) 1 49 49 82 50 Telephone: (33) 1 40 75 71 81 Boulevard du Souverain, 25 Fax: (33) 1 40 75 57 95 1170 Brussels MUTUELLE SAINT- E-mail: [email protected] Telephone: (32) 2678 6111 CHRISTOPHE ASSURANCES Fax: (32) 2678 9340 277 Rue Saint Jacques Investor Relations: Internet: //www.axa.be/ 75005 Paris Paris office: Telephone: (33) 1 56 24 76 00 Telephone: (33) 1 40 75 48 42 FRANCE Fax: (33) 1 56 24 76 27 Fax: (33) 1 40 75 46 96 AXA ASSURANCES New York office: GERMANY Tour AXA Telephone: (1) 212 314 4040 1 Place des Saisons Fax: (1) 212 707 1805 AXA COLONIA KONZERN 92083 Paris la Défense Cedex E-mail: [email protected] Gereonsdriesch 9-11 Telephone: (33) 1 47 74 10 01 Postfach 10-07-26 Fax: (33) 1 47 74 28 22 Individual Shareholder relations: 50670 Cologne Internet: //www.axa.fr/ Telephone: (49) 221 148 101 Telephone: (33) 1 40 75 48 43 Fax: (49) 221 148 22740 Fax: (33) 1 40 75 59 54 Email: [email protected] E-mail: [email protected] AXA CONSEIL 21 Rue de Châteaudun Internet: //www.axa-colonia.de/ 75009 Paris Telephone: (33) 1 56 02 30 00 AXA NORDSTERN ART FINAXA Fax: (33) 1 56 02 32 32 Gereinstrasse 43-65 23 Avenue Matignon Internet: //www.axa.fr/ 50670 Cologne 75008 Paris Telephone: (49) 221 148 32903 Telephone: (33) 1 40 75 57 00 AXA COURTAGE Fax: (49) 221 148 4655 Fax: (33) 1 40 75 47 92 26 Rue Louis le Grand Internet: //www.axa-art.com/ 75119 Paris Cedex 02 Telephone: (33) 1 49 49 40 00 Fax: (33) 1 49 49 47 00
66 SICHER DIRECT PORTUGAL AXA INSURANCE The AXA An der Trift 65 1 Aldgate Group D-63303 Dreieich AXA SEGUROS PORTUGAL London EC3N 1RE Telephone: (49) 6103 989 0 Praça Marques de Pombal, 14 Telephone: (44) 20 7702 3109 Fax: (49) 6103 989 500 1250-162 Lisbon Fax: (44) 20 7369 3909 Operations Email: [email protected] Telephone: (351) 21 350 61 00 Internet: //www.axa.co.uk/ Internet: //www.sicherdirect.de/ Fax: (351) 21 350 61 36 Operating Email: [email protected] Highlights AXA SUN LIFE Internet: //www.axa.pt/ HUNGARY Sun Life Centre Financial PO Box 1810 Highlights AXA COLONIA BIZTOSÍTÓ SPAIN Bristol BS99 5SN Róbert Károly Körút, 76-78 Telephone: (44) 117 989 9000 Insurance H-1134 Budapest AXA SEGUROS Fax: (44) 117 989 1810 Telephone: (36) 1 2386 000 Paseo de la Castellana, 79 Internet: //www.axa.co.uk/ International Fax: (36) 1 2386 060 28046 Madrid Insurance Telephone: (34) 91 538 5589 Email: [email protected] AXA PPP HEALTHCARE Fax: (34) 91 556 9287 Asset Internet: //www.axa-biztosito.hu/ PPP House,Vale Road Internet: //www.axa-seguros.es/ Management Tunbridge Wells IRELAND Kent TN1 1BJ Results DIRECT SEGUROS Telephone: (44) 1892 512 345 AXA IRELAND Calle Ronda de Poniente, 14 Fax: (44) 1892 515 143 Other Wolfe Tone House C. Empresarial Euronova Internet: Information Wolfe Tone Street 28760 Tres Cantos – Madrid //www.ppphealthcare.co.uk/ Dublin 1 Telephone: (34) 91 806 9500 Fax: (34) 91 806 9545 Telephone: (353) 1 872 1000 AXA NORDSTERN ART Internet: //www.directseguros.es/ Fax: (353) 1 872 6795 INSURANCE Internet: //www.axa.ie/ 78 Leadenhall Street SWITZERLAND London EC3A 3DH ITALY Telephone: (44) 20 7626 5001 AXA ASSURANCES Fax: (44) 20 7626 4606 AXA ASSICURAZIONI Avenue de Cour, 26 Via Leopardi, 15 1007 Lausanne 3 Telephone: (41) 21 614 74 74 20123 Milan Fax: (41) 21 614 74 75 Telephone: (39) 02 480 841 NORTH AMERICA Email: [email protected] Fax: (39) 02 480 84331 Internet: //www.axa.ch/ Internet: //www.axa-assicurazioni.it/ CANADA TURKEY AXA CANADA LUXEMBOURG AXA OYAK 2020 Rue Université Nordstern Han Bureau 600 AXA LUXEMBOURG Karakoy Meydani Montreal – Quebec – H3A 2A5 7 Rue de la Chapelle 80002 Istanbul Telephone: (1) 514 282 1914 L-1325 Luxembourg Telephone: (90) 212 292 58 00 Fax: (1) 514 282 9588 Telephone: (352) 44 24 24 -1 Fax: (90) 212 251 31 62 Internet: //www.axa.ca/ Fax: (352) 45 80 23 Email: [email protected] Email: [email protected] Internet: //www.axaoyak.com.tr/ Internet: AXA ASSURANCES //www.axa-assurances.lu/ 1100 Boulevard René-Lévesque UNITED KINGDOM West – 16th Floor Montreal – Quebec – H3B 4P4 NETHERLANDS AXA UK Telephone: (1) 514 392 6000 107 Cheapside Fax: (1) 514 392 6328 AXA VERZEKERINGEN London EC2V 6DU Internet: //www.axa.ca/ Postbus 30810 Telephone: (44) 207 645 1600 3503 AR Utrecht Fax: (44) 207 726 4965 St Jacobsstraat 200 AXA INSURANCE Email: [email protected] 5700 Yonge Street 3511 BT Utrecht Internet: //www.axa.co.uk/ Telephone: (31) 30 2309 000 Bureau 1400 Fax: (31) 30 2309 001 North York – Ontario – M2M 4K2 Internet: //www.axa.nl/ Telephone: (1) 416 250 1992 Fax: (1) 416 250 5833 Internet: //www.axa.ca/
67 AXA PACIFIC INSURANCE CHINA PT AXA LIFE INDONESIA 999 Hastings West Street Level 8, Bina Mulia II 2nd Floor REPRESENTATIVE OFFICE Jalan H.R. Rasuna Said Kav. 11 PO Box 22 AXA-BEIJING Jakarta 12950 Vancouver – (BC) V6C 2W2 Room 2302, Telephone: (62) 21 520 1190 Telephone: (1) 604 669 4247 Bldg 1 China World Tower Fax: (62) 21 525 1259 Fax: (1) 604 682 6693 No. 1 Jian Guo Men Wai Avenue Internet: //www.axa-life.co.id/ Internet: //www.axa.ca/ Beijing 100004 Telephone: (86) 10 650 56 172-4 Fax: (86) 10 650 56 175 JAPAN ICON Email:[email protected] Triton Building AXA LIFE INSURANCE 35 Blackmarsh 1-2-19, Higashi Shibuya-ku 2nd Floor AXA-MINMETALS Tokyo 150-8020 St John’s ASSURANCE Telephone: (81) 3 3407 6231 Newfoundland – A1B 3N9 12/F China Merchants Tower Internet: //www.axa.co.jp/ Telephone: (1) 709 758 5650 66 Lu Jia Zui Road, Pudong Shanghai 200120 Fax: (1) 709 579 4500 AXA DIRECT JAPAN Telephone: (86) 21 5879 2288 Internet: //www.axa.ca/ Ariake Frontier Bldg. Tower A Fax: (86) 21 5879 2299 3-1-25 Ariake, Koto-ku Internet: Tokyo 135-8611 UNITED STATES //www.axa-minmetals.com.cn/ Telephone: (81) 3 3570 8918 AXA FINANCIAL, INC. Fax: (81) 3 3570 8971 1290 Avenue of the Americas HONG KONG Internet: //www.axa-direct.co.jp/ New York, NY 10104 Telephone: (1) 212 554 1234 AXA GENERAL INSURANCE Fax: (1) 212 707 1746 HONG KONG MALAYSIA 30th Floor Internet: AXA AFFIN ASSURANCE PCCW Tower //www.axa-financial.com/ BERHAD Taikoo Place, 979 King’s Road Level 28 Menara Dayabumi Quarry Bay Jalan Sultan Hishamuddin Hong Kong 50050 Kuala Lumpur Telephone: (852) 2523 3061 Telephone: (60) 3 2771 8282 ASIA PACIFIC Fax: (852) 2810 0706 Fax: (60) 3 2711 1227 Internet: Internet: //www.axa.com.my/ //www.axa-insurance.com.hk/ AUSTRALIA AXA ASIA PACIFIC AXA CHINA REGION NEW ZEALAND HOLDINGS AXA Centre AXA NEW ZEALAND 447 Collins Street 151 Gloucester Road The National Mutual Life Melbourne Victoria 3000 Wanchai Hong Kong Association of Australia Ltd. Telephone: (61) 3 9616 3911 Telephone: (852) 2519 1111 80 The Terrace Fax: (61) 3 9614 2240 Fax: (852) 2598 9380 PO Box 1692 Wellington Internet: Internet: Telephone: (64) 4 474 4500 //www.axa-asiapacific.com.au/ //www.axa-chinaregion.com/ Fax: (64) 4 473 0716 Email: [email protected] AXA AUSTRALIA INDONESIA Internet: //www.axa.co.nz/ National Mutual Life Association PT ASURANSI AXA of Australasia PHILIPPINES 447 Collins Street INDONESIA th Melbourne Victoria 3000 Wisma Bank Dharmala, 8 Floor PHILIPPINE AXA LIFE Telephone: (61) 3 9616 3911 Jl. Jend Sudirman Kav.28 G/F Executive Office Fax: (61) 3 9614 2240 Jakarta 12 920 Philippine Life Centre Internet: //www.axa.com.au/ Telephone: (62-21) 522 5501-3 Skyland Plaza Building Fax: (62-21) 522 5504 Sen. Gil Puyat Avenue Email: AUSTRALIAN CASUALTY Makati City [email protected] & LIFE Telephone: (63) 2 810 1573 Internet: 1 Chifley Square Fax: (63) 2 759 6761 //www.asurance-axa.co.id/ Sydney NSW 2000 Telephone: (61) 2 9367 2000 Fax: (61) 2 9223 39193
68 SINGAPORE AXA INSURANCE PUBLIC MOROCCO The AXA COMPANY Ltd. Group AXA ASIA REGIONAL Lumpini Tower 23 FL AXA ASSURANCE MAROC CENTRE 1168/67 Rama 4Rd 120 – 122 Avenue Hassan II 3, Temasek Avenue # 24-03 Sathorn, Bangkok 10120 20000 Casablanca Operations Centennial Tower Telephone: (66) 2 679 7600 Telephone: (212) 22 88 92 92 Singapore 039 190 Fax: (66) 2 285 6383 Fax: (212) 22 88 91 88 Operating Highlights Telephone: (65) 880 7688 Email: [email protected] Internet: Fax: (65) 836 2616 //www.axa-assurance.co.ma/ Financial Highlights AXA INSURANCE SENEGAL SINGAPORE PTE AFRICA Insurance 77, Robinson Road AXA ASSURANCES SENEGAL # 11-00 SIA Building 5 Place de l’Indépendance International Singapore 068896 BP 182 Dakar Insurance Telephone: (65) 338 7288 CAMEROON Telephone: (221) 849 10 10 Fax: (65) 338 2522 Fax: (221) 823 46 72 Asset Management Internet: AXA ASSURANCES Email: [email protected] //www.axainsurance.com.sg/ AXA VIE 309 Rue Bebey-Eyidi Results BP 4068 Douala TOGO AXA LIFE INSURANCE Telephone: (237) 42 67 72 UAT Other SINGAPORE Fax: (237) 42 64 53 169 Boulevard du 13-Janvier Information 143, Cecil Street Email: [email protected] # 03-01/10 GB Building Immeuble BTCI Singapore 069542 BP 495 Lomé Telephone: (65) 880-5500 GABON Telephone: (228) 21 10 34 Fax: (65) 880-5501 Fax: (228) 21 87 24 AXA ASSURANCES GABON Email: [email protected] Email: [email protected] BP 4047 Libreville Internet: //www.axa-life.com.sg/ Telephone: (241) 74 34 34 Fax: (241) 74 18 46 TAIWAN SOUTH AMERICA AXA ASSURANCES IARD AXA VIE GABON Taïwan Branch Office BP 2137 Libreville Telephone: (241) 74 34 34 6A 138 Ming-Sheng East Road Section 3 Fax: (241) 72 48 57 ARGENTINA Taipei AXA SEGUROS ARGENTINA Telephone: (886) 2 2547 5566 GUINEA Tte Gral J.D. Peron 650 Fax: (886) 2 2545 4355 5 Piso Email: [email protected] UGAR 1038 Buenos Aires BP 179 Conakry Telephone: (54) 11 4326 88 81 Telephone: (224) 41 48 41 AXA CHINA REGION Fax: (54) 11 4326 37 42 Fax: (224) 41 17 11 Taïwan Branch Office Email: [email protected] Email: [email protected] 12th Floor, No. 44, Chung Shan Internet: N. Road //www.axa-seguros.com.ar/ Section 2 IVORY COAST Taipei BRAZIL Telephone: (886) 2 2531 1199 AXA ASSURANCES COTE D’IVOIRE Fax: (886) 2 2511 2725 AXA SEGUROS BRAZIL 01 BP 378 Abidjan 01 Internet: Avenida Rio Branco 80 Telephone: (225) 20 21 75 06 //www.axa-chinaregion.com.tw/ 19th Andar Fax: (225) 20 31 88 00 CEP 20040-070 Rio de Janeiro Email:[email protected] THAILAND Telephone: (55) 21 203 66 22 Fax: (55) 21 507 19 82 KRUNGTHAI AXA LIFE AXA VIE COTE D’IVOIRE Email: [email protected] INSURANCE 9 Avenue Houdaille Internet: //www.axa.com.br/ Level 25 Capital Tower 01 BP 2016 Abidjan 01 All Seasons Place Telephone: (225) 20 22 25 15 87/1 Wireless Road Fax: (225) 20 22 37 60 Bangkok 10330 Telephone: (66) 2 654 3150 Fax: (66) 2 654 3140
69 CHILE SPS RE International 13 Rue de Calais AXA SEGUROS CHILE 75009 Paris Huérfanos 1189, Piso 2-3-4 Telephone: (33) 1 44 63 54 45 Santiago Insurance Fax: (33) 1 42 80 50 15 Telephone: (56) 2 679 92 00 Fax: (56) 2 679 93 60 Email: [email protected] ITALY EUROPE AXA CORPORATE URUGUAY SOLUTIONS INSURANCE Italian Branch Office AXA SEGUROS URUGUAY FRANCE Via della Moscova, 18 Misiones 1549 20121 Milan 11000 Montevideo AXA CORPORATE Telephone: (39) 02 655 381 Telephone: (59) 82 916 08 50 SOLUTIONS Fax: (39) 02 655 38 301 Fax: (59) 82 916 08 47 69 Avenue Franklin Roosevelt Internet: 75008 Paris //www.axa-corporatesolutions.com/ Telephone: (33) 1 56 43 90 00 Fax: (33) 1 56 43 91 26 Internet: AXA CORPORATE MIDDLE EAST //www.axa-corporatesolutions.com/ SOLUTIONS INSURANCE Italian Branch Office Piazza della Vittoria, 10/10 AXA CORPORATE 16121 Genoa LEBANON SOLUTIONS REINSURANCE Telephone: (39) 010 533 11 39 Rue du Colisée Fax: (39) 010 57 05 900 AXA MIDDLE EAST 75008 Paris BP 11-550 Beirut Internet: Telephone: (33) 1 56 43 90 00 //www.axa-corporatesolutions.com/ Imm. AXA MIDDLE EAST Fax: (33) 1 56 43 91 26 Autoroute Jal El Dib Internet: Telephone: (961) 4 716 333 //www.axa-corporatesolutions.com/ MONACO Fax: (961) 4 716 563 Email: CGRM [email protected] AXA CORPORATE Park Palace SOLUTIONS ASSURANCE 5 Impasse de la Fontaine (France, Benelux, Southern No. 123 – Bâtiment A SAUDI ARABIA Europe) Monte Carlo 4 Rue Jules Lefebvre 98000 Monaco AXA INSURANCE 75426 Paris Cedex 09 P.O. Box 21044 Telephone: (377) 93 25 35 04 Telephone: (33) 1 56 92 80 00 Fax: (377) 93 30 79 63 11475 Riyad Fax: (33) 1 56 92 80 01 Telephone: (966) 1 478 02 82 Internet: Fax: (966) 1 477 30 97 //www.axa-corporatesolutions.com/ PORTUGAL
AXA RE FINANCE UNITED ARAB AXA CESSIONS Madera Branch Office EMIRATES 109 Rue de la Boétie Avenida Arriaga no. 77-406 75008 Paris UAP UNITED ARAB 9000 Funchal Telephone: (33) 1 56 43 78 00 EMIRATES Telephone: (351) 291 22 74 76 Fax: (33) 1 56 43 78 01 PO Box 5630 Fax: (351) 291 23 13 38 Internet: Abu Dhabi Internet: //www.axa-corporatesolutions.com/ Telephone: (971) 26 76 44 66 //www.axa-corporatesolutions.com/ Fax: (971) 26 76 01 07 Email: [email protected] AXA RE FINANCE UNITED KINGDOM 39 Rue du Colisée 75008 Paris AXA CORPORATE Telephone: (33) 1 56 43 90 00 SOLUTIONS SERVICES UK Fax: (33) 1 56 43 86 99 140 Fenchurch Street Internet: London EC3M 6BL //www.axa-corporatesolutions.com/ Telephone: (44) 20 77 02 66 00 Fax: (44) 20 77 02 68 57 Internet: //www.axa-corporatesolutions.com/
70 AXA CORPORATE AXA CORPORATE The AXA SOLUTIONS INSURANCE SOLUTIONS REINSURANCE Assistance Group UK branch office 17 State Street London Underwriting Centre 29th & 30th Floors 3 Minster Court New York, NY 10004-1501 AXA ASSISTANCE Operations Mincing Lane Telephone: (1) 212 493930 0 12 bis Boulevard de Frères-Voisins London EC3R 7DD Fax: (1) 212 425 29 14 92798 Issy-les-Moulineaux Operating Highlights Telephone: (44) 207 868 46 00 Internet: Cedex 09 Fax: (44) 207 868 46 46 //www.axa-corporatesolutions.com/ France Financial Internet: Telephone: (33) 1 55 92 40 00 Highlights //www.axa-corporatesolutions.com/ Fax: (33) 1 55 92 40 59 AXA CORPORATE SOLUTIONS Insurance LATIN AMERICA 1200 Brickell Avenue International NORTH AMERICA Suite 1700 AMERICAS Insurance Miami, Florida 33131 Asset Telephone: (1) 305 377 12 92 Management Fax: (1) 305 372 39 31 AXA ASSISTANCE CANADA Internet: 200 West Jackson Blvd, suite 1100 Results //www.axa-corporatesolutions.com/ Chicago, Illinois 60606 AXA CORPORATE United States SOLUTIONS CANADA Telephone: (1) 312 935 35 00 Other Place Montreal-Trust AXA SPACE Fax: (1) 312935 35 89 Information 1800 McGill College Avenue 4800 Montgomery Lane th Bureau 2000 11 Floor Operations: Montreal, Quebec H3A Bethesda, MD 20814 Argentina, Brazil, Canada, Chile, Telephone: (1) 514 842 92 62 Telephone: (1) 301 654 85 85 Colombia, Mexico, United States, Fax: (1) 514 842 92 54 Fax: (1) 301 654 75 69 Uruguay, Venezuela Internet: Internet: //www.axa-space.com/ //www.axa-corporatesolutions.com/
UNITED STATES ASIA PACIFIC ASIA PACIFIC AXA CORPORATE SOLUTIONS INSURANCE AXA ASSISTANCE 1 Seaport Plaza New River Bldg, 4F th AUSTRALIA 199 Water Street 8 Floor 1-10-14 Shinkawa New York, NY 10038-3526 AXA CORPORATE Chuo-ku Telephone: (1) 212 412 07 00 SOLUTIONS 104-0033 Tokyo Fax: (1) 212 412 07 01 ASIA PACIFIC Japan Internet: Branch Office Telephone: (81) 3 32 06 16 00 //www.axa-corporatesolutions.com/ Level 25, 56 Pitt Street Fax: (81) 3032 06 16 07 Sydney NSW 2000 AXA CORPORATE Telephone: (61) 2 9258 04 50 Operations: SOLUTIONS LIFE Fax: (61) 2 9258 04 99 Australia, China, Hong Kong, REINSURANCE Internet: Indonesia, Japan, Malaysia, 17 State Street //www.axa-corporatesolutions.com/ Singapore, Taiwan, Thailand 32nd Floor New York, NY 10004-1501 Telephone: (1) 212 859 05 55 SINGAPORE Fax: (1) 212 859 05 77 AXA CORPORATE Internet: SOLUTIONS ASIA PACIFIC //www.axa-corporatesolutions.com/ PRIVATE 152 Beach Road 27-01 Gateway East Singapore 189721 Telephone: (65) 296 92 00 Fax: (65) 296 90 88 Internet: //www.axa-corporatesolutions.com/
71 EUROPE FRANCE AXA INVESTMENT MANAGERS PRIVATE EQUITY AXA BANQUE EUROPE AXA ASSISTANCE 372 Rue Saint Honoré 20 Place Vendôme Grantham House 75001 Paris 75001 Paris 11/15 North Street Telephone: (33) 1 55 35 84 00 Telephone: (33) 1 55 37 50 00 Surrey KT22 7AX Fax: (33) 1 55 35 84 89 Fax: 01 55 37 54 76 Leatherhead Internet: //www.axa-banque.fr/ United Kingdom Telephone: (44) 1372 366 701 AXA MULTIMANAGER AXA CREDIT Fax: (44)1372 361 595 77 Avenue des Champs Elysées 372 Rue Saint Honoré 75008 Paris 75001 Paris Operations: Telephone: (33)1 45 61 34 36 Telephone: (33) 1 55 35 88 00 Andorra, Austria, Belgium, Fax: (33) 1 45 61 39 81 Fax: (33) 1 55 35 88 87 Czech Republic, France, Germany, Greece, Italy, AXA REAL ESTATE Ivory Coast, Morocco, AXA INVESTMENT INVESTMENT MANAGERS Netherlands, Poland, Portugal, MANAGERS PARIS FRANCE United Kingdom, Spain, Sweden, Until September 2001: 61 Rue Lafayette Switzerland, Tunisia, Turkey 46 Avenue de la Grande Armée 75439 Paris Cedex 09 75017 Paris Telephone: (33) 1 55 07 70 00 Telephone: (33) 1 55 37 50 00 Fax: (33) 1 55 07 70 10 Fax: (33) 1 55 35 54 75 Internet: //www.axa-im.fr/ COMPAGNIE FINANCIERE DE PARIS After September 2001: Asset 372 Rue Saint Honoré Coeur Défense Tour B, La Défense 4 75001 Paris 100 Esplanade du Telephone: (33) 1 55 35 84 00 management Général de Gaulle Fax: (33) 1 55 35 87 59 92932 Paris la Défense Cedex and other Telephone: (33) 1 44 45 70 00 Internet: //www.axa-im.fr/ ITALY
financial AXA INVESTMENT AXA INVESTMENT MANAGERS ITALIA MANAGERS STRUCTURED Via Rovello no.18 services ASSET MANAGEMENT 20121 Milan 46 Avenue de la Grande Armée Telephone: (39) 02 88 00 091 75017 Paris Fax: (39) 02 88 00 09 60 Telephone: (33) 1 55 37 47 45 Internet: //www.axa-im.it/ EUROPE Fax: (33) 1 55 37 55 83 Via A Depretis no. 86 GERMANY 00184 Rome Telephone: (39) 06 4782 6121 BELGIUM AXA INVESTMENT Fax: (39) 06 4782 6125 MANAGERS DEUTSCHLAND Internet: //www.axa-im.it/ AXA BANK BELGIUM Stiftstrasse 30 Grotesteenweg, 214 60313 Frankfurt am Main 2600 Berchem Telephone: (49) 69 900 25 16916 LUXEMBOURG Telephone: (32) 3 286 22 11 Fax: (49) 69 900 25 15823 Fax: (32) 3 286 24 07 IPPA & ASSOCIES Internet: //www.axa-im.com/ Internet: //www.axa-bank.be/ 34 Avenue de la Liberté 1930 Luxembourg Kattenbug 1 Telephone: (352) 2629 2629 AXA INVESTMENT 50667 Cologne Fax: (352) 2629 2626 MANAGERS BRUSSELS Telephone: (49) 221 148 15800 36 Boulevard du Souverain Fax: (49) 221 148 24224 1170 Brussels Internet: //www.axa-im.com/ Telephone: (32) 2 678 7562 Fax: (32) 2 678 7842 Email: [email protected] Internet: //www.axa-im.com/
72 NETHERLANDS NORTH AMERICA ASIA PACIFIC AXA INVESTMENT MANAGERS DEN HAAG Parkstraat 31-35 UNITED STATES AUSTRALIA 2514 JD Den Haag NATIONAL MUTUAL FUNDS PO Box 16315 ALLIANCE CAPITAL MANAGEMENT 2500 BH Den Haag MANAGEMENT 16th Floor Telephone: (31) 70 34 23 833 1345 Avenue of the Americas New York, NY 10105 447 Collins Street Fax: (31) 70 34 23 830 Melbourne Victoria 3000 Telephone: (1) 212 969 1000 Email: [email protected] Telephone: (61) 3 9287 3333 Internet: //www.axa-im.com/ Internet: Fax: (61) 3 9287 4888 //www.alliancecapital.com/ Internet: //www.axa.com.au/ UNITED KINGDOM AXA INVESTMENT HONG KONG AXA INVESTMENT MANAGERS NEW YORK MANAGERS AXA GLOBAL STRUCTURED AXA INVESTMENT MANAGERS AXA INVESTMENT PRODUCTS, INC. HONG KONG MANAGERS UK 24th Floor 19/F CITIC Tower AXA INVESTMENT 600 Fifth Avenue 1 Tim Mei Avenue MANAGERS PRIVATE EQUITY New York, NY 10020 Hong Kong Telephone: (852) 2285 2000 FUNDS OF FUNDS Telephone: (1) 212 218 2000 Fax: (852) 2285 2999 AXA REAL ESTATE Fax: (1) 212 218 2040 Internet: //www.axa-im.com.hk/ INVESTMENT MANAGERS 7 Newgate Street London EC1A 7NX, AXA MULTI MANAGER JAPAN th Telephone: (44) 20 7003 1000 24 Floor Fax: (44) 20 7575 8585 600, Fifth Avenue AXA INVESTMENT MANAGERS Internet: //www.axa-im.com/ New York, NY 10020 TOKYO Telephone: (1) 212 218 2010 5F Totate International Bldg. Fax: (1) 212 218 2050 2-12-19 Shibuya AXA MULTIMANAGER Shibuya-ku 7 Newgate Street Tokyo 150-0002 London EC1A 7NX AXA INVESTMENT Telephone: (81) 3 5766 8800 Telephone: (44) 20 7003 2053 MANAGERS PRIVATE EQUITY Fax: (81) 3 5766 8900 FUND OF FUNDS 24th Floor AXA ROSENBERG AXA ROSENBERG 600 Fifth Avenue INVESTMENT MANAGEMENT INVESTMENT MANAGEMENT New York, NY 10020 9A Devonshire Square Dai-Ichi Edobashi Bldg. Telephone: (1) 212 218 2001 London EC2M 4YY 1-11-1 Nihonbashi Telephone: (44) 20 7895 6666 Fax: (1) 212 218 2040 Tokyo 103-0027 Fax: (44) 20 7895 6767 Telephone: (81) 3 3278 5641 Fax: (81) 3 3278 5688 Internet: AXA ROSENBERG Internet: //www.axarosenberg.com/ //www.axarosenberg.com/ INVESTMENT MANAGEMENT 4 Orinda Way ALLIANCE CAPITAL ASSET ALLIANCE CAPITAL Building E Orinda CA 94563 MANAGEMENT Devonshire House Ohtemachi 1st Square Telephone: (1) 925 254 6464 1 Mayfair Place West Tower 12th Floor London WIX 6JJ Fax: (1) 925 253 0141 1-5-1 Ohtemachi Telephone: (44) 20 7470 0100 Internet: Chiyoda-ku Internet: //www.axarosenberg.com Tokyo 100-0004 //www.alliancecapital.com/ Telephone: (81) 3 3240 8410 BERNSTEIN INVESTMENT Fax: (81) 3 3240 8534 Internet: //www.alliancecapital.com/ SANFORD C. BERNSTEIN RESEARCH AND 99 Gresham Street MANAGEMENT London EC2V 7NG 767 Fifth Avenue SINGAPORE United Kingdom New York, NY 10153-0185 Telephone: (44) 20 7367 7300 Telephone: 212-486-5800 AXA ROSENBERG INVESTMENT MANAGEMENT 6 Battery Road # 15-06/07 Singapore 049909 Telephone: (65) 224 4969 Fax: (65) 227 7033 Photo credits: PhotoAlto - EyeWire - Photodisc - Goodshoot.- Internet: //www.axarosenberg.com/ Photovision - Image 100 - Stockbyte External Communications Department 25 Avenue Matignon - 75008 Paris - France
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