Direction delaCommunicationetMarque 25, avenueMatignon–75008ParisFrance www.axa.com Référence : 702253/04-06 – Conception : – Réalisation : DESIGN MEDIA – 01 40 55 16 66 Document de référence 2005 2005 annualreport Document deréférence Document contents AXA Group History and development 4 Simplified organization chart 6 AXA stock price 8 Financial highlights Financial highlights 12 Ratings 16 Legal information . Corporate Governance 20 51 5 Internal control procedures 40 Full disclosure on executive and million employees compensation and share in capital 55 client across the globe Principal statutory information concerning trust in AXA. the Company 76 Information concerning the share capital of the Company 78 Other legal information 88 Financial information Description of business 99 Investment Strategy and Capital Resources 125 110,000 Risk factors 133 employees and distributors Activity Report 157 mobilized around the world. Consolidated Financial Statements 231 Other Supplementary Financial Information 395 Parent Company 400 Embedded value 413 Salaried employees 418 Significant event known sebsenquently at the year end closing 419 Person responsible and 72 billion the independent auditors euros in consolidated revenues. Person responsible for the Annual Report 422 +5.2% on a comparable basis. Independent auditors 423 Correspondence table 425 Be Life Confident All around the world, we deliver our products and services under a global brand. Combined with our tagline –Be Life Confident– the AXA brand conveys our promise to customers: we will protect them and help them realize their projects at every stage of their lives. 15,000 3.3 employees volunteer in their local community. billion euros in underlying earnings +24% at a constant exchange rate. 1,064 4.2 billion billion euros in assets under management. euros in net income, Group share. +22% +12% at a constant exchange rate. AXA Group History and development / p. 4 Simplified organization chart / p. 6 AXA stock price / p. 8 Simplified organization chart / p. 6 AXA Group History and development AXA1 originated from several French regional mutual In 1999, after getting an insurance licence from Chinese insurance companies, known collectively as “les authorities, the Life joint-venture between AXA and Mutuelles Unies”. Minmetals was launched in Shanghai. In 1982, les Mutuelles Unies took control of Groupe In 2000, AXA acquired a majority ownership interest in Drouot and following this transaction the new Group “Nippon Dantaï Life Insurance Company”, resulting in a began operating under the name of AXA. new company called “AXA Nichidan” (which became in 2001 “AXA Life Insurance Co.”). In addition, in July In 1986, AXA acquired Groupe Présence. 2000, AXA increased its interest in SLPH from 56.3% to 100%. In August 2000, AXA sold its interest in Donaldson In 1988, AXA transferred its insurance businesses to Lufkin & Jenrette to Credit Suisse Group. In October Compagnie du Midi and operated under the name of 2000, Alliance Capital, a subsidiary of AXA Financial, AXA Midi, which subsequently reverted back to the AXA acquired the U.S. asset management company Sanford name. Two years later, the French insurance operations C. Bernstein. In December 2000, AXA acquired the were reorganized to operate by distribution channel. remaining minority interests in AXA Financial, which is now a 100% owned subsidiary of AXA. In 1992, AXA took control of Equitable Companies Incorporated following the demutualization of Equitable In 2001-2002, AXA acquired two financial advisory Life. The Equitable Companies Incorporated changed networks in Australia, Sterling Grace and Ipac its name in 1999 to AXA Financial, Inc. (“AXA Financial”). Securities, as well as a banking platform in France, Banque Directe. AXA also continued to streamline its In 1995, AXA acquired a majority ownership interest in portfolio of businesses, selling its health business in National Mutual Holdings following its demutualiza- Australia and insurance operations in Austria and tion. National Mutual Holdings changed its name to Hungary, and reorganizing its reinsurance business. In AXA Asia Pacific Holdings Ltd. 2002, the Group sold its bank and insurance businesses in Chile. In 1997, AXA merged with Compagnie UAP. This trans- action enabled AXA to significantly increase its size and In 2003, AXA sold all its activities in Argentina and Brazil. reinforce its strategic positions, especially in Europe. In September 2003, the Group announced the acquisi- tion of the American group Mony. This operation was In 1998, AXA purchased the minority interests of AXA subject to the approval of the shareholders of Mony Royale Belge and, in 1999, acquired Guardian Royal and to the obtaining of various lawful authorizations. Exchange in Great Britain through its subsidiary Sun Life & Provincial Holdings (“SLPH”). The Guardian Royal In 2004, AXA purchased the American group Mony; this Exchange acquisition allowed AXA to further establish operation allowed AXA to reinforce for a total amount of its positions in both the United Kingdom and Germany. approximately 25% the capacity of distribution of AXA (1) In this annual report: – the “Company” refers to the holding company AXA, organized under the laws of France, – “AXA” refers to the Company and its direct and indirect subsidiaries. 4 Life activities in the United States. In addition, AXA sold In December 2005, AXA and FINAXA shareholders’ its insurance activities in Uruguay (AXA Seguros meetings voted in favour of the merger of FINAXA into Uruguay) thereby finalizing its disengagement from South AXA. FINAXA was a holding company listed on the America; it also disposed of its broking activities (Unirobe) Paris Stock Exchange and its main subsidiary was and its activity of health insurance in the Netherlands, AXA. It also owned the “AXA” brand. This merger and finally its activity of loan on real property in Germany resulted in a simplification of AXA’s shareholder (AXA Bausparkasse AG). structure and in an increase in the proportion of publicly traded shares. In addition, AXA obtained ownership of the “AXA” brand. 5 AXA Group Simplified organization chart ᕢ ᕨ Ƹ ᕥ ¸ µᕤ ᕧ ƹ ᕩ ¹ ᕦ ᕡ ᕣ Main subsidiaries as at December 31, 2005 America Europe ᕡ UNITED STATES ᕤ GERMANY I Insurance I Insurance AXA Financial Inc. (a) 100% 100% AXA Konzern AG (e) 92% 93% (b) MONY Holdings LLC 100% 100% I Financial Services ᕢ CANADA AXA Bank AG 92% 100% I Insurance ᕥ BELGIUM (c) AXA Canada Inc. 100% 100% I Insurance AXA’s companies’ AXA Holdings Belgium (f) 100% 100% contacts are I Financial Services available on Africa AXA Bank Belgium 100% 100% the web site: ᕣ MOROCCO www.axa.com ᕦ SPAIN I Insurance I Insurance AXA-ONA (d) 51% 51% AXA Aurora S.A. (g) 100% 100% Hilo Direct S.A. de 100% 100% Seguros y Reaseguros (a) Holding Company that owns AXA Equitable Life Insurance Company. (b) Holding Company that owns MONY Life Insurance Company and MONY Life Insurance Company of America. (c) Holding Company that owns AXA Assurances Inc. and AXA Insurance (Canada). (d) Holding Company that owns AXA Assurance Maroc. (e) Holding Company that owns AXA Versicherung AG, AXA Lebenversicherung AG and AXA ART Versicherung AG. (f) Holding Company that owns AXA Belgium. (g) Holding Company that owns AXA Aurora Iberica, S.A., de Seguros y Reaseguros and AXA Aurora Vida, S.A. de Seguros y Reaseguros and Seguro Directo (Portugal R.C). (h) Holding Company that owns AXA France Vie, AXA France IARD, AVANSSUR and AXA Corporate Solutions Assurance 6 Main subsidiaries as at December 31, 2005 I International Insurance I Asset Management AXA RE 100% 100% AXA Investment Managers 95% 100% AXA Assistance SA 100% 100% AXA Real Estate Investment Managers 95% 100% Alliance Capital Management L.P. 61% 61% AXA Rosenberg 76% 100% ƺ ƽ Ƽ ƾ Areas in dark green represent ƻ countries in which AXA offers at least one of its protection services. ᕧ FRANCE ¸ THE NETHERLANDS Asia-Pacific I Insurance I Insurance ƻ AUSTRALIA/NEW ZEALAND AXA France 100% 100% AXA Nederland B.V. (k) 100% 100% Assurance (h) I Insurance ¹ PORTUGAL AXA Asia Pacific 53% 100% I Financial Services I Insurance Holdings Limited (n) Compagnie 100% 100% AXA Portugal Companhia 99% 100% Financière de Paris Ƽ HONG KONG de Seguros SA AXA Banque 100% 100% I Insurance AXA Portugal Companhia 95% 95% AXA China Region Limited 53% 100% ᕨ IRELAND de Seguros de Vida SA Vie ƽ JAPAN I Insurance Ƹ UNITED KINGDOM AXA Insurance 100% 100% I Insurance I Insurance Limited AXA Japan 98% 100% AXA UK Plc (l) 100% 100% Holding Co. Ltd (o) ᕩ ITALY ƹ SWITZERLAND ƾ SINGAPORE I Insurance I Insurance I Insurance AXA Italia S.p.A (i) 100% 100% AXA Assurances 100% 100% AXA Financial Services Pte 53% 100% µ LUXEMBOURG Ltd Singapore Holding Cy (p) ƺ TURKEY I Insurance I (j) Insurance AXA Luxembourg SA 100% 100% (m) AXA Oyak Holding A.S. 50% 50% Ownership interest percentage % Voting right percentage % (i) Holding Company that owns AXA Assicurazioni S.p.A. (j) Holding Company that owns AXA Assurance Luxembourg and AXA Assurance Vie Luxembourg. (k) Holding Company that owns AXA Leven N.V. and AXA Schade N.V. (l) Holding Company that owns AXA Sun Life Plc, AXA Insurance Plc and AXA PPP Healthcare Limited. (m) Holding Company that owns AXA Oyak Hayat Sigorta A.S. and AXA Oyak Sigorta A.S. (n) Holding Company that owns AXA Australia New Zealand. (o) Holding d Company that owns AXA Life Insurance Co., Ltd and AXA non-life Insurance Co. Ltd. (p) Holding Company that owns AXA Life Insurance Singapore Pte Ltd. 7 AXA Group AXA stock price