AXA Files Form 20-F With the SEC; Reduces Income Figures

July 1, 2003

France’s AXA SA announced that, following discussions, it has filed its Annual Report on Form 20-F for the year ended December 31, 2002 with the Securities and Exchange Commission. The figures were compiled using U.S. GAAP principles, which require more stringent impairment reserves than French accounting rules.

“The Form 20-F includes the Company’s primary financial statements in French GAAP and also includes a reconciliation of the Company’s net income and shareholder’s equity from French GAAP to US GAAP,” said the bulletin. As a result 2001 net income is now stated at 356 million euros ($407 million) and the net loss AXA suffered in 2002 is 2.587 billion euros ($2.962 billion).

AXA explained that “The French GAAP to US GAAP reconciliation in the Company’s 2002 Form 20-F includes a restatement of the Company’s 2001 US GAAP net income, reflecting the Company’s application of more stringent impairment rules for investment securities. The net impact of these additional impairments on the Company’s 2001 US GAAP net income is approximately Euro 1.1 billion [$1.26 billion] and was made by the Company following discussions with the SEC on its Form 20-F for the year ended December 31, 2001.

“The more stringent impairment rules have resulted primarily in AXA systematically writing down to market value, through the US GAAP income statement, equity securities that have been in an unrealized loss position for more than 6 months or more than 20%,” the announcement continued. “Consequently the remaining unrealized losses on equity securities, not impaired through the income statement as of December 31st 2002, is limited to Euro 0.3 billion [$343 million] gross of policyholder benefits, DAC and tax.”

AXA said the adjustment did not impact consolidated shareholders’ equity, as determined under US GAAP rules, as of December 31, 2001 nor as of December 31, 2002 “as the unrealized effect of the decreased market value of its investment securities was already recorded through ‘Other comprehensive income’ (a separate component within shareholders’ equity) in those periods. Impairments on invested assets have no effect on AXA’s embedded value or solvency capital.”

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