AXA FINANCIAL INC - FORM 8-K - EX-99.2 - RECONCILIATION - February 17, 2011

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EX-99.1 - PRESS RELEASE - FULL YEAR 2010 EARNINGS - AXA FINANCIAL INCe13709_ex99-1.htm
8-K - CURRENT REPORT - AXA FINANCIAL INCe13709.txt
 
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)
 
            
               
         
Twelve Months Ended December 31,
            2009     2010
               
Contribution to IFRS Gross Revenues per AXA Press Release
in Euro
      
               
 
    
Gross Premiums
  
8,717 
  
8,647 
     
Other Revenues (A)
  
667 
  
811 
         
9,384 
  
9,458 
               
     
Average exchange rate   US$1.00 =
  
0.71712 
  
0.74796 
               
               
       
in US$
13,086 
  
12,645 
               
Reconciling items:
        
     
Less:  Other Revenues (A)
  
(931)
  
(1,084)
     
Less:  Deposits from Universal life and investment-type product policy fee income (B)
(10,162)
  
(9,520)
     
Less:  Reinsurance ceded premiums  (C)
  
(528)
  
(523)
 
    
Add:   Others (D)
  
26 
 
24 
     
Total Reconciling items
  
(11,595)
  
(11,103)
               
               
               
Consolidated AXA Financial, Inc. US GAAP Premiums
  
1,491 
 
1,542 
               
               
               
 
(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's US GAAP Net Earnings
  
   (in millions)  
                   
         
12 Months Ended December 31,
  
         
2009
    
2010
  
 Contribution to IFRS Underlying Earnings, per AXA Press Release
 in Euro
            
                   
   
 US Life & Savings
       545       478  
   
 Asset Management
       185       143  
   
 AXA Financial Holding Company
       (99 )     (139 )
 Total Contribution to IFRS Underlying Earnings
 in Euro
     631       482  
                       
   
  Net realized capital gains attributable to shareholders
       (16 )     (138 )
 Total Contribution to IFRS Adjusted Earnings
 in Euro
     615       344  
                       
   
 Profit or loss on financial assets (under Fair Value option) and derivatives
       (541 )     23  
   
 Exceptional Operations (including discontinued operations)
       -       2  
   
 Integration and restructuring costs
       -       (32 )
   
 Goodwill and related intangibles
       (1 )     (1 )
                       
 Total Contribution to IFRS Net Income, Group Share
 in Euro
     73       336  
                       
   
 Average exchange rate
 US$1.00 =
     0.71712       0.74796  
                       
     
 in USD
     102       448  
 Reconciling items:
                  
 (A)
  
 GMIB/DB Reserves & Reinsurance Asset
       (3,573 )     231  
 (B)
  
 Investment income & capital gains (losses)
       (38 )     18  
 (C)
  
 Amortization of goodwill & other intangible assets
       (24 )     (32 )
 (D)
  
 Employee Benefits Plan - Fresh Start, net of DAC capitalization
       (69 )     (89 )
 (E)
  
 Employee stock based compensation
       (10 )     (21 )
 (F)
  
 Other Reserve adjustment - including  SOP 03-01
       (9 )     (3 )
 (G)
  
 Amortization of DAC & VOBA
       617       (548 )
 (H)
  
 Tax Reserves Release
       -       148  
 (I)
  
 Tax on sale of Alliance units
       11       9  
 (J)
  
 Other
       (129 )     (106 )
 Total Reconciling items
       (3,224 )     (393 )
                       
 Consolidated US GAAP Net Earnings
     $ (3,122 )   $ 55  
                       
 (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 and certain mortality and annuitization benefits.
 (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)
  
Represents different accounting methodologies related to the tax expense associated with the sale of AllianceBernstein units.
  
 (J)
  
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.

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