AXA Financial, Inc. | ||||||||
Reconciliation of AXA US Life & Savings Contribution to AXA Group IFRS Revenues | ||||||||
with Consolidated AXA Financial, Inc. Premiums under USGAAP | ||||||||
(in millions) | ||||||||
Six Months Ended June 30, | ||||||||
2010 | 2011 | |||||||
Contribution to IFRS Gross Revenues per AXA Press Release | in Euro | |||||||
Gross Premiums | 4,314 | 4,340 | ||||||
Other Revenues (A) | 399 | 414 | ||||||
4,713 | 4,754 | |||||||
Average exchange rate US$1.00 = | 0.75314 | 0.71215 | ||||||
in USD | 6,258 | 6,675 | ||||||
Reconciling items: | ||||||||
Less: Other Revenues (A) | (530 | ) | (581 | ) | ||||
Less: Deposits from Universal life and investment-type product policy fee income (B) | (4,727 | ) | (5,097 | ) | ||||
Less: Reinsurance ceded premiums (C) | (241 | ) | (237 | ) | ||||
Add: Others (D) | 13 | 11 | ||||||
Total Reconciling items | (5,485 | ) | (5,904 | ) | ||||
Consolidated AXA Financial, Inc. US GAAP Premiums | 773 | 771 | ||||||
(A) | Represents fees received from servicing and advisory business, and fees on the sales of Mutual Funds reported within Commissions, Fees & Other Income in the US GAAP Statement of Earnings | |||||||
(B) | Reflected as an increase to Policyholder Account Balances in the US GAAP Balance Sheet | |||||||
(C) | Reflected as a reduction to Premiums in the US GAAP Statement of Earnings | |||||||
(D) | Represents Pension fee income and Reinsurance Assumed Premiums that are excluded from premiums for IFRS reporting | |||||||
AXA Financial, Inc. | ||||||||||
Reconciliation of the Contribution to IFRS Underlying Earnings, Adjusted Earnings and Net Income, Group Share | ||||||||||
to AXA Financial, Inc.'s US GAAP Net Earnings | ||||||||||
(in millions) | ||||||||||
6 Months Ended June 30, | ||||||||||
2010 | 2011 | |||||||||
Contribution to IFRS Underlying Earnings, per AXA Press Release | in Euro | |||||||||
US Life & Savings | 229 | 345 | ||||||||
Asset Management | 71 | 57 | ||||||||
AXA Financial Holding Company | (81 | ) | (59 | ) | ||||||
Total Contribution to IFRS Underlying Earnings | in Euro | 219 | 343 | |||||||
Net realized capital gains attributable to shareholders | (25 | ) | (9 | ) | ||||||
Total Contribution to IFRS Adjusted Earnings | in Euro | 194 | 334 | |||||||
Profit or loss on financial assets (under Fair Value option) and derivatives | 61 | 55 | ||||||||
Exceptional operations and discontinued operations | 2 | (12 | ) | |||||||
Goodwill and related intangibles | - | - | ||||||||
Total Contribution to IFRS Net Income, Group Share | in Euro | 257 | 377 | |||||||
Average exchange rate | US$1.00 = | 0.75314 | 0.71215 | |||||||
in USD | 341 | 529 | ||||||||
Reconciling items: | ||||||||||
(A) | GMIB/DB Reserves & Reinsurance Asset | 2,086 | (100 | ) | ||||||
(B) | Investment income & capital gains (losses) | 16 | (20 | ) | ||||||
(C) | Amortization of goodwill & other intangible assets | (21 | ) | (12 | ) | |||||
(D) | Employee Benefits Plan - Fresh Start, net of DAC capitalization | (43 | ) | (55 | ) | |||||
(E) | Employee stock based compensation | (1 | ) | (1 | ) | |||||
(F) | Other Reserve adjustment - including SOP 03-01 | (1 | ) | (3 | ) | |||||
(G) | Amortization of DAC & VOBA | (508 | ) | 27 | ||||||
(H) | Tax Reserves Release | 148 | - | |||||||
(I) | Other | (24 | ) | 2 | ||||||
Total Reconciling items | 1,652 | (162 | ) | |||||||
Consolidated US GAAP Net Earnings | $ | 1,993 | $ | 367 | ||||||
(A) | Reflects the accounting for reinsurance contracts ceding variable annuity Guaranted Minimum Income Benefit ('GMIB') features as derivative contracts at fair value under USGAAP vs. ceded reinsurance reserves under IFRS; and insurance reserves for Guaranteed Minimum Death Benefit ("GMDB") and GMIB features subject to economic hedging programs on an SOP 03-1 basis under USGAAP vs. remeasurement to reflect current market conditions under IFRS. | |||||||||
(B) | Primarily reflects different accounting methodologies for impairments under IFRS and USGAAP. | |||||||||
(C) | Reflects amortization of acquisition related intangible assets in USGAAP on acquisitions prior to adoption of IFRS. | |||||||||
(D) | Represents impact of IFRS initial implementation "fresh start" adjustment to eliminate the portion of employee benefit liabilities related to deferred actuarial gains and losses, which has resulted in a reduction of ongoing IFRS employee benefit expenses compared to USGAAP over the period in which those deferred gains and losses would otherwise have been amortized. | |||||||||
(E) | Primarily reflects different accounting methodologies for share based awards under IFRS and USGAAP. | |||||||||
(F) | Represents adjustment of MVA liabilities from the IFRS basis accrued account balance (with interest rate floors reflected on a contract-by-contract basis) to the USGAAP basis (which considers the impact of interest rate floors on a block of business basis) and adjustments to the liability related to group pension contracts. | |||||||||
(G) | Represents DAC and VOBA reactivity to other IFRS adjustments. | |||||||||
(H) | Represents release of state and local deferred taxes for US GAAP reporting resulting from the conversion of ACMC, Inc. from a corporation to a limited liability company. | |||||||||
(I) | Other primarily represents operations assumed on behalf of AXA Japan, Minority Interest in AllianceBernstein owned by AXA Companies and different effective tax rates under IFRS and US GAAP. | |||||||||