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AXA 20-F 2008

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 20-F

(Mark One)

[   ]      REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR
[X]      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2007
OR

[   ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from           to

OR

[   ]      SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 1-14410

AXA

(Exact name of Registrant as specified in its charter)

N/A

(Translation of Registrant’s name into English)

The Republic of France

(Jurisdiction of incorporation or organization)

25, avenue Matignon - 75008 Paris - France

(Address of registrant’s principal executive offices)

Denis Duverne, Chief Financial Officer and Member of the Management Board

email : denis.duverne@axa.com

25, avenue Matignon - 75008 Paris - France

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of each class:   Name of each exchange on which registered:  
Ordinary shares   New York Stock Exchange  
American Depositary Shares      
(as evidenced by American Depositary Receipts),      
each representing one Ordinary Share   New York Stock Exchange  

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

The number of outstanding shares of each of the issuer’s classes of capital or common stock as of December 31, 2007 was: 2,060,753,492

Ordinary Shares of Euro 2.29 nominal value per share, including 90,300,936 American Depositary Shares (as evidenced by American

Depositary Receipts), each representing one Ordinary Share.
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes [X]                     No [   ]

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant

to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes [   ]                    No [X]

Note - Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities

Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has beensubject to such filing requirements for the past 90 days.

Yes [X]                     No [   ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of

"accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer [X]           Accelerated filer [   ]Non-accelerated filer [   ]

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing: U.S. GAAP [   ] International Financial Reporting Standards as issued by the International
Accounting Standards Board [X]
Other [   ]

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has

elected to follow.
Item 17 [   ] Item 18 [X]

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  [   ]                         No [X]


Table of Contents

ITEM   Page in this
Form 20-F
 
Presentation of Information   1       
Exchange Rate Information   2    
Special Note Regarding Forward-Looking Statements   2    
         
Part I        
Item 1 Identity of Directors, Senior Management and Advisers   4    
Item 2 Offer Statistics and Expected Timetable   4    
Item 3 Key Information   4    
Item 4 Information on the Company   6    
Item 4A Unresolved Staff Comments   7    
Item 5 Operating and Financial Review and Prospects   8    
Item 6 Directors, Senior Management and Employees   81    
Item 7 Major Shareholders and Related Party Transactions   84    
Item 8 Financial Information   84    
Item 9 The Offer and Listing   84    
Item 10 Additional Information   87    
Item 11 Quantitative and Qualitative Disclosures about Market Risk   101    
Item 12 Description of Securities other than Equity Securities   101    
         
Part II        
Item 13 Defaults, Dividend Arrearages and Delinquencies   102    
Item 14 Material Modifications to the Rights of Security Holders
and Use of Proceeds
  102    
Item 15 Controls and Procedures   102    
Item 16A Audit Committee Financial Expert   104    
Item 16B Code of Ethics   104    
Item 16C Principal Accountant Fees and Services   105    
Item 16D Exemptions from the Listing Standards for Audit Committees   106    
Item 16E Purchases of Equity Securities by the Issuer and Affiliated
Purchasers
  107    
Part III        
Item 17 Financial Statements   F-1    
Item 18 Financial Statements   F-1    
Schedule : Parent Company Financial Statements   S-1    
Item 19 Exhibits   E-1    
         
Signatures   SS-1    

Presentation of Information

This Annual Report on Form 20-F has been filed with the United States Securities and Exchange Commission
(referred to hereafter as the "US SEC" or "SEC").

In this Annual Report on Form 20-F, unless provided otherwise, the "Company", "AXA" or "AXA SA" refers to
AXA, a Société Anonyme organized under the laws of France, which is the publicly traded parent company of
the AXA Group, and "AXA Group", the "Group" or "we" refers to the Company together with its direct and
indirect consolidated subsidiaries. The Company’s ordinary shares are referred to in this Annual Report on Form
20-F as "shares", "ordinary shares", or "AXA ordinary shares". The principal trading market for the Company’s
ordinary shares is the Compartment A of Euronext Paris, which we refer to in this Annual Report on Form 20-F
as "Euronext Paris". The Company’s American Depositary Shares and American Depositary Receipts are
referred to in this Annual Report on Form 20-F as "ADSs" and "ADRs", respectively. The ADSs and ADRs are
listed on the New York Stock Exchange (referred to in this Annual Report on Form 20-F as "NYSE"). One ADS
represents one ordinary share.

This Annual Report on Form 20-F incorporates by reference specific portions of AXA’s home country 2007
Annual Report to Shareholders (the "AXA Group 2007 Annual Report") which was furnished to the SEC on a
Form 6-K on April 28, 2008. Therefore, the information in this Annual Report on Form 20-F should be read in
conjunction with such portions of the AXA Group 2007 Annual Report incorporated by reference herein. Such
portions of the AXA Group 2007 Annual Report incorporated by reference in this Form 20-F are included herein
as Exhibit 15(b). The AXA Group 2007 Annual Report has been furnished to the SEC for information only and
the AXA Group 2007 Annual Report is not filed with the SEC except for such specific portions as are expressly
incorporated by reference in this Annual Report on Form 20-F.

Item 18 of this Annual Report on Form 20-F incorporates by reference AXA’s consolidated financial statements
for the years ended December 31, 2007, 2006 and 2005 from the AXA Group 2007 Annual Report (Part V  - 
"Consolidated Financial Statements"). These financial statements have been prepared in accordance with
International Financial Reporting Standards (referred to in this Annual Report on Form 20-F as "IFRS") and
interpretations from the International Financial Reporting Interpretations Committee (referred to in this Annual
Report on Form 20-F as "IFRIC") that were definitive and effective as at December 31, 2007, as adopted by the
European Union before the balance sheet date. However, the Group does not use the "carve out" option to avoid
applying all the hedge accounting principles required by IAS 39. As a consequence, the consolidated financial
statements also comply with IFRS as issued by the International Accounting Standards Board ("IASB").

Various amounts in this Annual Report on Form 20-F and in the AXA Group 2007 Annual Report are shown in
million for presentation purposes. Such amounts have been rounded and, accordingly, may not total. Rounding
differences may also exist for percentages.

1


Exchange Rate Information

The information required by this Item is incorporated by reference herein from the AXA Group 2007 Annual
Report, Part I, Section 1.2 page 2.

Special Note Regarding Forward-Looking
Statements

This Annual Report on Form 20-F and other publicly available documents concerning AXA may include, and
AXA’s officers and representatives may from time to time make, statements which may constitute "forward-
looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These
statements are not historical facts but instead represent AXA’s belief regarding future events, many of which, by
their nature, are inherently uncertain and outside of AXA’s control.

These statements may address, among other things, AXA’s financial condition, results of operations and
business, including its strategy for growth, product development, regulatory approvals, market position,

embedded value, new business value, combined ratio, reserves and similar matters. All statements other than
statements of historical facts are, or may be deemed to be, forward-looking statements. Forward-looking
statements are statements of future expectations that are based on management’s current views and assumptions
and involve known and unknown risks and uncertainties that could cause actual results, performance or events to
differ materially from those expressed or implied in such statements, including those risks and uncertainties
discussed elsewhere in this Annual Report on Form 20-F and in AXA’s other public filings, press releases, oral
presentations and discussions. Forward-looking statements include, among other things, discussions concerning
the potential exposure of AXA to market risks, as well as statements expressing management’s expectations,
beliefs, estimates, forecasts, projections and assumptions, including statements with respect to AXA’s Ambition
2012 project and the objectives, financial and other, associated with that project. Forward-looking statements in
this Annual Report on Form 20-F are identified by the use of the following words and other similar expressions,
among others:

– "anticipate"
– "believe"
– "outlook"
– "probably"
– "project"
– "risks"
– "seek"
– "should"
– "target"
  – "would"
– "objectives"
– "could"
– "estimate"
– "expect"
– "goals"
– "intend"
– "may"
– "shall"
     

 

 

2


 

The following factors, among others, could affect the future results of operations of AXA and could cause those
results to differ materially from those expressed in the forward-looking statements included in this Annual
Report on Form 20-F:

market risks including those related to (a) financial market volatility, stock market prices, fluctuations
in interest rates, and foreign currency exchange rates, (b) illiquidity in the credit markets, (c)
counterparty credit risks, (d) adverse developments that may affect the value of AXA’s investments
and/or result in investment losses and default losses, (e) the use of derivatives and AXA’s ability to
hedge effectively, (f) sustained elevated inflation rates, and (g) adverse changes in the economies in
AXA’s major markets;

the intensity of competition from other financial institutions;

AXA’s experience with regard to mortality and morbidity trends, lapse rates and policy renewal levels
relating to its Life & Savings operations, which may also include health products;

the frequency, severity and development of Property & Casualty claims and policy renewal rates
relating to AXA’s Property & Casualty business;

re-estimates of AXA’s reserves for future policy benefits and claims;

AXA’s ability to develop, distribute and administer competitive products and services in a timely, cost-
effective manner and its ability to develop information technology and management information
systems to support strategic goals while continuing to control costs and expenses;

AXA’s visibility in the market place, the financial and claims-paying ability ratings of its insurance
subsidiaries, as well as AXA’s credit rating and ability to access adequate financing to support its
current and future business;

AXA’s reputation and brand recognition in the marketplace as well as its relationships with regulatory
authorities in the various markets where it does business;

the effect of litigation or changes in laws and regulations on AXA’s businesses, including changes in
tax laws affecting insurance as well as operating income and changes in accounting and reporting
practices;

changes in policies of central banks and/or governments;

the costs of defending litigation, the risk of unanticipated material adverse outcomes in such litigation
and AXA’s exposure to other contingent liabilities;

force majeure, terrorist attacks, events of war and their respective consequences;

adverse political developments around the world, particularly in the principal markets in which AXA
and its subsidiaries operate;

the occurrence, frequency and severity of natural disasters, pandemic diseases and other catastrophic
events;

the performance of others on whom AXA relies for distribution, investment management, reinsurance
and other services; and

the effect of any pending or future mergers, acquisitions or disposals, AXA’s ability to successfully
integrate previously acquired businesses and its ability to achieve anticipated synergies from these
acquisitions.

The above factors are in addition to those factors discussed elsewhere in this Annual Report on Form 20-F
including matters discussed under the following sections: Item 3 "Key Information – D-Risk Factors"; Item 4
"Information on the Company – Additional Factors which may affect AXA’s Business"; Item 5 "Operating and
Financial Review and Prospects"; Item 11 "Quantitative and Qualitative Disclosures About Market Risk" and
Item 18 "Financial Statements".

You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks
only as at the date of the particular statement. AXA does not intend to, and undertakes no obligation to (and
expressly disclaims any such obligations to), update publicly or revise any forward-looking statement as a result
of new information, future events or otherwise. In light of these risks, AXA’s results could differ materially from
the forward-looking statements contained in this Annual Report on Form 20-F and/or in other publicly available
documents concerning AXA or statements made by AXA’s officers and representatives from time to time.

3


PART I

Item 1. Identity of Directors, Senior Management
and Advisers

Not applicable.

Item 2. Offer Statistics and Expected Timetable

Not applicable.

Item 3. Key Information

A - Selected Consolidated Financial Data

The information required by this Item is incorporated by reference herein from the AXA Group 2007 Annual
Report, Part II, Section 2.1 pages 4 to 6 and page 8, and part V, Note 26 to the Consolidated Financial
Statements pages 364 and 365. In addition, please see the information set forth below in this Item 3.

Information on Euro Noon Buying Rates

The following table sets forth, for the periods and dates indicated, certain information concerning the Noon
Buying Rate of one Euro to U.S. dollars in New York City for cable transfers as certified for customs purposes
by the Federal Reserve Bank of New York, which we refer hereafter as the "Euro Noon Buying Rate". The Euro
Noon Buying Rates presented below are for your convenience and were not used by AXA to prepare AXA’s
consolidated financial statements.

4


    U.S. dollar per Euro  
Calendar period   Average rate (a)  
2003   1.1411  
2004   1.2478  
2005   1.2400  
2006   1.2661  
2007   1.3797  
2008 (through March 31, 2008)   1.5278  

(a) The average of the Euro Noon Buying Rates on the last business day of each full month during the relevant period.

 

        U.S. dollar per Euro  
Month   High   Low  
October 2007   1.4468   1.4092  
November 2007   1.4862   1.4435  
December 2007   1.4759   1.4344  
January 2008   1.4877   1.4574  
February 2008   1.5187   1.4495  
March 2008   1.5805   1.5195  

The Euro Noon Buying Rate on December 31, 2007 was €1.00 = USD 1.4603

B-Capitalization and Indebtedness

Not applicable.

C - Reasons for the Offer and Use of Proceeds

Not applicable.

D - Risk Factors

The information required by this Item is incorporated by reference herein from the AXA Group 2007 Annual
Report, Part IV, Section 4.1 pages 166 to 175 and Part II, Section 2.2 pages 39 to 43.

5


Item 4. Information on the Company

The information required by this Item is incorporated by reference herein from the AXA Group 2007 Annual
Report, Part II, Section 2.2 pages 9 to 43. Please note that the following non-GAAP measures presented in the
tables on pages 18 and 22 of the AXA Group 2007 Annual Report are not incorporated by reference into this
Form 20-F: "Annual Premium Equivalent", "New Business Value", "Underlying Earnings" and "Adjusted
Earnings".

Please see Note 14.3 in AXA Group’s consolidated financial statements incorporated by reference herein from
AXA Group 2007 Annual Report, part V (pages 198 to 375) related to reconciliation of Property & Casualty
insurance claims and claim adjustment expenses for each of the years in the three years ended December 31,
2007.

In addition, please see the tables below which summarize certain key financial data for the last three years. All
financial data is prepared on an IFRS basis.

Consolidated Gross Revenues and Net Income

                (in Euro million, except percentages)  
    Years ended December 31,  
    2007   2006   2005  
            Restated (2) (3)   Published       Restated
(1) (3)
  Published      
Consolidated gross revenues                                  
– Life & Savings   59,845   64%   49,952   50,479   64%   44,585   45,116   63%  
– Property & Casualty   25,016   27%   19,510   19,793   25%   18,600   18,874   26%  
– International Insurance   3,568   4%   3,716   3,716   5%   3,813   3,813   5%  
– Asset management   4,863   5%   4,406   4,406   6%   3,440   3,440   5%  
– Banking   339   0%   377   381   0%   424   428   1%  
– Holdings and other companies   2   0%   4   -   0%   4   0   0%  
CONSOLIDATED GROSS REVENUES   93,633   100%   77,966   78,775   100%   70,865   71,671   100%  
NET INCOME                                  
– Life & Savings   2,899   49%   2,957   2,957   51%   2,404   2,404   50%  
– Property & Casualty   2,218   37%   1,977   1,977   34%   1,737   1,737   36%  
– International Insurance   243   4%   244   244   4%   184   184   4%  
– Asset management   588   10%   610   610   10%   411   411   9%  
– Banking   6   0%   10   43   1%   60   82   2%  
NET INCOME FROM OPERATING SEGMENTS   5,953   100%   5,798   5,831   100%   4,796   4,819   100%  
– Holdings and other companies   (287)       (712)   (745)       (478)   (645)      
NET INCOME   5,666       5,085   5,085       4,318   4,173      

(1) As described in Note 1.10 and Note 1.11.2 of "Part V - Consolidated Financial Statements" incorporated by reference from the AXA Group 2007 Annual Report, (i) following clarification of IFRIC agenda committee following IASB decision, AXA reclassified TSDI instruments (perpetual subordinated debts) into shareholders' equity with impact on net income, and (ii) the restatement of The Netherlands' activities as discontinued businesses with impact on revenues.

(2) Restated in full year 2006 means the restatement of The Netherlands' activities as discontinued business.

(3) SPEs and CDOs included in "Holdings and other companies". Previously disclosed in the Other Financial Services segment which was renamed "Banking".

6


 

Other Financial Data

        2007       2006       2005
Restated (a) (b)
  2005
Published
 
For the years ended December 31,                              
Net income per ordinary share (in Euro)                              
Basic           2.77       2.61   2.25   2.22  
Diluted           2.75       2.56   2.22   2.19  
At December 31,                              
Shareholders' equity (in Euro million)           45,642       47,226   36,525   33,847  
Average share price (in Euro)           30.9       28.1       21.6  
Share price as at December 31 (in Euro)           27.4       30.7       27.3  

(a) As described in Note 1.11.2 of "Part V - Consolidated Financial Statements" incorporated by reference from the AXA Group 2007 Annual Report, following clarification of the IFRIC agenda committee following IASB decision, AXA reclassified TSDI instruments (perpetual subordinated debts) into shareholders' equity with impact on net income and shareholders' equity.

(b) The share capital increase with preferential subscription rights launched by AXA on June 14, 2006 to finance part of the acquisition of Winterthur resulted in the issue of 208,265,897 new shares at a price of €19.80 compared to a market price of €24.47. According to IAS 33, share issues carried out at a price below-market may give rise to an adjustment to the average number of shares during the period and in each period presented. As a consequence, the loss of value suffered by existing shares represents the value of the existing shareholders’ theoretical subscription right, and the issue can be regarded as a bonus issue in the amount of the total value of the subscription rights. An adjustment factor (1.019456) equal to the pre- transaction share price divided by the theoretical post-transaction value of the shares is applied to the weighted average number of shares outstanding.

 

 

Item 4A. Unresolved Staff Comments

None

 

7


Item 5. Operating and Financial review and Prospects

You should read the following discussion and analysis together with AXA’s audited consolidated financial statements and the
related Notes included in Item 18 of this Annual Report on Form 20-F.

The audited consolidated financial statements have been prepared in accordance with IFRS as issued by the International
Accounting Standards Board (IASB). Such financial statements also comply with IFRS as adopted by the European Union before
the balance sheet date, as described in Note 1 to the consolidated financial statements included in Item 18 of this Annual Report
on Form 20-F.

Certain information discussed below and elsewhere in this Annual Report on Form 20-F includes forward-looking statements that
involve risks and uncertainties. See "Special Note Regarding Forward-Looking Statements" provided at the beginning of this
Annual Report on Form 20-F and Item 3 "Key information – D - Risk Factors" for a discussion of important factors that could
cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in
this Annual Report on Form 20-F.

This discussion and analysis also includes certain terms that are used by AXA in analyzing its business operations and, therefore,
may not be comparable with terms used by other companies. These terms are defined in the glossary presented later in this Item.

Overview

The Operating and Financial Review and Prospects item provides certain information on markets for the current year and a
discussion and analysis of AXA’s operating performance for the years ended December 31, 2007, 2006 and 2005 as reported
under IFRS as follows:

– The information on the market conditions applicable to the year ended December 31, 2007, with a focus mainly on the
financial market and insurance market conditions for the main countries in which AXA operates.

– A summary of the main operating highlights of the year specific to AXA, including a summary of the principal acquisitions
and disposals, and capital operations that occurred during the year, as well as any important events subsequent to December
31, 2007.

– An overview of critical accounting policies, setting out the accounting policies that require the use of significant
assumptions and estimates in the preparation of the consolidated financial statements.

 

The "consolidated operating results" section is based on IFRS financial statements and is composed of two main parts:

(i) Consolidated revenues for the year ended December 31, 2007 compared to the year ended December 31, 2006, for the
Group and by operating segment, and the same for the year ended December 31, 2006 compared to the year ended
December 31, 2005; and

(ii) Consolidated results for the year ended December 31, 2007 compared to the year ended December 31, 2006, for the Group
and by operating segment and the same for the year ended December 31, 2006 compared to the year

8


ended December 31, 2005.

In addition, specific commentaries and analyses are provided for each operating segment, i.e. Life & Savings,
Property & Casualty, International Insurance, Asset Management and Banking, as well as the Holdings and Other
Companies segment. In addition, for each insurance operating segment, investment results are provided.

Additional information is provided in the "Liquidity and Capital Resources" section, describing AXA’s operating sources and
uses of funds, solvency margin requirements, supplementary information on contractual obligations and specific information
relating to off-balance sheet arrangements, and consolidated cash flows for the year ended December 31, 2007 compared to the
year ended December 31, 2006.

Insurance and Asset Management Markets

Incorporated by reference herein from the AXA Group 2007 Annual Report, Part II, Section 2.3 "Insurance and Asset
Management Markets" pages 44 to 47.

Market conditions in 2007

Incorporated by reference herein from the AXA Group 2007 Annual Report, Part II, Section 2.3 "Market conditions in 2007" page
48.

For information purposes and in respect of AXA’s principal non-Euro-based operations, the analysis below provides an indication
of the impact of foreign currency fluctuations on total revenues’ growth.

For operations denominated in:   U.S.$   British Pound   Japanese yen  
Gross revenues growth in original currency (2007 vs. 2006)   14.9%   9.3%   12.8%  
Foreign exchange impact   -9.5%   -0.4%   -10.9%  
Gross revenues growth in Euro (2007 vs. 2006)   5.4%   8.8%   1.9%  

In addition, AXA provides on a regular basis certain period-to-period comparisons calculated on a comparable basis to eliminate
the effects of (i) changes in foreign exchange rates (constant exchange rate basis), (ii) changes in AXA’s scope of consolidation
resulting from acquisitions, disposals and business transfers (constant structural basis), and (iii) changes in accounting principles
(constant methodological basis).

Additional information about the impact of foreign currency fluctuations on shareholders’ equity is provided in Note 13 to the
consolidated financial statements, included in Item 18 of this Annual Report on Form 20-F.

9


December 31, 2007 Operating highlights

Incorporated by reference herein from the AXA Group 2007 Annual Report, Part II, Section 2.3 "Operating Highlights" pages 49
to 53.

Events subsequent to December 31, 2007

Incorporated by reference herein from the AXA Group 2007 Annual Report, Part II, section 2.3 "Events subsequent to December
31, 2007" page 54.

Critical accounting policies

The accounting principles used in the preparation of the consolidated financial statements in accordance with IFRS as issued by
the IASB are set out in Note 1 in the Notes to the consolidated financial statements in Item 18 of this Annual Report on Form 20-
F. As it relates to the financial statements included in this Form 20-F there is no difference between IFRS as adopted by the
European Union and IFRS as adopted by the International Accounting Standard Board ("IASB").

The Group no longer provides reconciliation of its financial statements prepared under IFRS as issued by the IASB to U.S.
GAAP, as allowed by the SEC's Release No. 33-8879, Acceptance from Foreign Private Issuers of Financial Statements Prepared
in Accordance with International Financial Reporting Standards without Reconciliation to U.S. GAAP
, and the related
amendments to the SEC rules and Form 20-F.

Certain of AXA’s accounting policies under IFRS require the use of estimates and assumptions that may involve a degree of
judgment that affects amounts reported in AXA’s consolidated financial statements. Management applies judgment for complex
transactions that may require estimates about matters that are inherently uncertain. These estimates may be based on historical
experience and on various other assumptions that are believed to be reasonable under the circumstances. Consequently, actual
experience or current estimates could differ significantly from the previous estimates due to changes in assumptions and financial
market or, economic or other conditions. Such differences would be reflected in the financial statements (when appropriate) and
could impact AXA’s financial results and conditions. These estimates and related judgments are common in the insurance and
financial services industries.

The accounting policies deemed critical to AXA’s operational results of operations and financial position, in terms of materiality
and the degree of judgment and estimation involved, are summarized below. The statements below contain forward-looking
statements within the meaning of the U.S. Private Securities Litigation Reform Act. See "Special Note Regarding Forward-
looking Statements" included at the beginning of this Annual Report on Form 20-F.

10


Scope of consolidation
Under IFRS, the scope of consolidation includes AXA SA and its subsidiaries, associates and investments in joint ventures (see
Note 1 to the consolidated financial statements included in Item 18 of this Annual Report on Form 20-F). The existence and effect
of potential voting rights that are currently exercisable or convertible are also considered when assessing whether AXA controls
another entity.

The Group’s approach for the determination of entities to be included in the scope of consolidation is based on an analysis of the
concept of control. The concept of control is used as the basis for consolidation of all entities, including consolidation of Special
Purpose Vehicles (SPVs), also referred to as Special Purpose Entities (SPEs). Control is the power to govern the financial and
operating policies of an entity so as to obtain benefits from its activities.

Entities that are controlled in substance, even without the majority of voting rights, are also consolidated. In this regard, the
determination of the scope of consolidation involves some elements of judgment.

In particular, in the case of a SPE, control may exist when, in substance:

- the activities of the SPE are being conducted on behalf of AXA according to its specific business needs so that AXA obtains
benefits from the SPE’s operations;

-  AXA has the decision-making powers to obtain the majority of the benefits of the SPE or, by setting up an "autopilot"
mechanism, AXA has delegated these decision-making powers;

- AXA has rights to obtain the majority of the benefits of the SPE and may be exposed to risks of the SPE; or

- AXA retains the majority of the residual or ownership risks related to the SPE or its assets.

 

Under IFRS, the consolidation is based on the level of control, and the consolidation methods are:

- the full consolidation method if AXA exercises an exclusive control;

- the proportionate method if AXA exercises a joint control;

- the equity method if AXA exercises a significant long-term influence.

Given the nature of the Group activities (no securitization of AXA's own invested assets), the current market conditions did not
lead to the consolidation of off balance sheet special purpose vehicles originated by the Group.

Goodwill
Goodwill represents the excess of the cost of acquisition over the net fair value of the assets, liabilities and contingent liabilities
acquired and is recorded as an asset on the balance sheet. Goodwill is considered to have indefinite useful life and is, therefore,
not amortized. AXA reviews goodwill when there is an indication that an impairment may have taken place or, at a minimum, on
an annual basis. A multi-criterion analysis is used in order to determine if there are significant adverse changes (parameters
include value of assets, future operating profits, market share). The possibility of an impairment can be derived from events or
changes in circumstances indicating that the carrying amount of goodwill may not be recoverable. Therefore, there is an element
of judgment involved in (i) evaluating when the indication of an impairment is significant enough to require a full test to be
undertaken, and (ii) determining the fair value to be used to assess recoverability of the carrying value. The valuation techniques
include market quotations and expected discounted cash flows taking into account the current shareholder net asset value plus
future profitability on business in-force and profitability value on future new business. The goodwill asset impairment test
performed in 2007 did not indicate a need for impairment.

11


However, future tests may be based on different assumptions and market/economic conditions, which may or may not result in
impairment of this asset in future periods. In addition, changes in market, economic or other conditions may affect the value of
goodwill. Should an impairment occur, any loss could materially reduce the value of the goodwill asset with a corresponding
charge recorded against income. An impairment of goodwill is not reversible.

Investments
AXA’s principal investments for its insurance related assets are primarily in fixed maturity and equity securities. Under IFRS,
these securities are carried at fair value or amortized cost unless there is a need for impairment.

Under IFRS, investments are classified in the following categories depending on the intention and ability to hold the invested
assets:

– assets held to maturity, accounted for at amortized cost;

– loans and receivables accounted for at amortized cost;

– trading assets and assets designated (option) at fair value with change in fair value through profit and loss, the latter referred
to as the "fair value option";

– available for sale assets accounted for at fair value with changes in fair value in shareholders’ equity.

The Group applies the IAS39 fair value hierarchy as described below. Fair values of financial assets traded in active markets are
determined using quoted market prices where available. A financial instrument is regarded as quoted in an active market if quoted
prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency
and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

The fair values of financial instruments that are not traded in an active market are estimated:

– using external and independent pricing services such as brokers or arranging banks, for example in the case of CDOs, or

– determined using valuation techniques.

Valuation techniques are subjective in nature and significant judgment is involved in establishing fair values for financial assets.
They involve various assumptions regarding the underlying price, yield curve, correlations, volatility, default rates and other
factors. Unlisted equity securities are based on cross checks using different methodologies such as discounted cash flows
techniques, price earning ratios multiples, adjusted net asset values, taking into account recent transactions on similar assets if any.
The use of valuation techniques and assumptions could produce different estimates of fair value. However, valuations are
determined using generally accepted models (e.g. discounted cash flows, Black & Scholes, etc.) based on quoted market prices for
similar instruments or underlyings (index, credit spread, etc.) whenever such directly observable data are available and valuations
are adjusted for liquidity and credit risk.

Among invested financial assets measured at fair value in the financial statements excluding derivatives, investment funds
consolidated by equity method and contracts where the financial risk is borne by policyholders (€374 billion as at December 31,
2007, €379 billion as at December 31, 2006, €300 billion as at December 31, 2005):

- €307 billion were determined directly by reference to an active market(1) (€320 billion at the end of 2006 and €263 billion at
the end of 2005), and

- €67 billion were measured on the basis of valuation techniques(2) (€59 billion at the end of 2006 and €37 billion at the end of
2005).

 

12


(1) Fair values determined directly by reference to an active market relate to prices which are readily and regularly available from
an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly
occurring market transactions on an arm’s length basis, i.e. the market is still active.

(2) Fair values estimated using valuation techniques include:

–  values provided at the request of the Group by pricing services and which are not readily publicly available or values
provided by external parties which are readily available but relate to assets for which the market is not always active, and

–  assets measured on the basis of internal models including assumptions supported by observable data or mark-to-model
valuations.

The amount of assets measured at fair value using in whole or in part a valuation technique based on assumptions that are not
supported by prices from current market transactions and not based on available observable market data is less than 1.5% of the
Group’s financial invested assets excluding assets backing contracts where the financial risk is borne by policyholders as at
December 31, 2007. When running this analysis, external valuations are considered as observable data determined by market
participants. See also Item 11, Quantitative and Qualitative Disclosures about Market Risk.

An impairment loss is recognized if, based on specific facts and circumstances, it is probable that the Group will not be able to
recover all of the cost of an individual holding.

Under IFRS, AXA assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of
financial assets is impaired. The assessment is based on a security-by-security evaluation and will depend on, but will not be
limited to:

– the length of time or the extent to which an unrealized loss position exists,

– whether the issuer has been experiencing significant financial difficulties, and

– factors specific to an industry sector or sub-sector.

The level of impairment losses can be expected to increase when economic conditions worsen and decrease when economic
conditions improve.

For equity securities classified as available for sale, a significant or prolonged decline in the fair value of the security below its
cost is considered in determining whether the securities are impaired. That is the case for equity securities with unrealized losses
for a continuous period of 6 months or more prior to the closing date or higher than 20% of the carrying value at the closing date.
If any such evidence exists for available for sale financial assets, the cumulative loss – measured as the difference between the
acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized in the income
statement – is removed from shareholders’ equity and recognized in the income statement. Impairment losses recognized in the
income statement on equity instruments are not reversed through the income statement until the asset is sold or derecognized.

For debt securities classified as held to maturity or available for sale, the impairment test related to a credit event is performed at
the individual level with a subsequent collective assessment for groups of assets with similar risks. If the test based on future cash
flows discounted using the effective interest rate at acquisition date indicates that there is objective evidence that the cost may not
be recovered, the debt security needs to be impaired. In this case, the charge recorded in the income statement is calculated based
on the current market value, representing the difference between the market value and the recorded value of the instrument (less
any impairment loss on that asset previously recognized). Under IFRS, the impairment charge for debt securities is reversible in
future periods. If the identified risk is eliminated or improves, the valuation allowance may be reversed with the amount of the
reversal recognized in the income statement.

13


Impairment measurement of loans is based on the present value of expected future cash flows, discounted at the loan’s effective
interest rate, on the loan’s observable market price or the fair value of the collateral if the loan is collateral-dependent.

In general, assessing an issuer’s near-term prospects may be difficult and involve some reasonable judgments and assumptions.
The use of, and changes to, different methodologies and assumptions may have a material effect on AXA’s consolidated operating
results under IFRS.

Investment risk factors
The fair values of investments are subject to market risks, such as interest rate, equity price, foreign currency exchange risks, and
credit risk.

Interest Rate Risk
The fair values of AXA’s fixed maturity investments, notes payable and other borrowings will fluctuate in response to changes in
market interest rates. Increases and decreases in prevailing interest rates generally result in decreases and increases in fair values
of those instruments. Fixed interest rate investments may be more sensitive to interest rate changes than variable rate investments.

The table below presents the exposure of investments sensitive to either fair value or cash flow interest rate risks, with the
indication of whether the potential changes in the interest rate curves would impact the shareholders’ equity or the net income of
the Group, before the effects of hedges in place.

                (in Euro million)  
    December 31, 2007  
    Net carrying amount by maturity  
    12 months or less   More than 1 year
up to 5 years
  More than 5 years   Total net carrying
value
 
Fixed maturities available for sale   13,160   56,197   163,514   232,871  
Fixed maturities at fair value through profit and loss (a)   17,739   8,883   22,698   49,320  
Sub-total fixed maturities   30,899   65,080   186,212   282,191  
Loans at amortized cost   2,920   5,459   12,712   21,091  
Loans available for sale   46   5   913   963  
Loans at fair value through profit and loss (a)   5   39   (4)   40  
Sub-total Loans   2,971   5,502   13,621   22,094  
TOTAL - Invested financial assets exposed to fair value interest rate risk   33,870   70,583   199,833   304,286  
Fixed maturities available for sale   430   2,783   10,069   13,282  
Fixed maturities at fair value through profit and loss (a)   380   5,332   2,060   7,772  
Sub-total fixed maturities   810   8,115   12,129   21,054  
Loans at amortized cost   422   341   1,251   2,015  
Loans available for sale   3   2   -   5  
Loans designated at fair value through profit and loss (a)   -   17   59   77  
Sub-total loans   425   360   1,311   2,096  
TOTAL - Invested financial assets exposed to cash flow interest rate risk   1,235   8,475   13,440   23,150  
Total invested financial assets exposed to interest rate risk   35,105   79,057   213,273   327,436  

(a) Corresponds to financial assets held for trading purposes and financial assets recognized at fair value through profit and loss.

14


In accordance with IFRS 7, the Group discloses, in Note 4 of its consolidated financial statements included in Item 18 of this
Annual Report on Form 20-F, quantitative sensitivities of the Group "Embedded Value" to interest risk. "Embedded Value" (EV)
is a valuation methodology often used for long term insurance business. It attempts to measure the present value of cash available
to shareholders now and in the future. "European Embedded Value" (EEV) is a refinement of this methodology based on
Principles issued by the CFO Forum of European insurers, which AXA adopted during 2005. AXA publishes EEV only for its
Life & Savings business.

In addition to Life & Savings EEV, AXA calculates a "Group EV" which adds to the Life & Savings EEV the Tangible Net Asset
Value for other-than-life businesses.

The Group EV is not an estimate of AXA's "fair value", regardless of how one might define "fair value". It does not include the
value of business to be sold in the future, nor does it include any value for future profits from existing business for other-than-life
businesses i.e. Property & Casualty, International Insurance, Asset Management and Banking. However, the Life & Savings EEV
is a key management metric measuring the risk-adjusted value of the business and tracking its evolution over time, and the Group
EV provides a crucial link to processes that impact total Group value but cannot be seen within the Life & Savings segment, such
as hedging strategies executed at the Group level and also the impact of leverage on the Group.

Additionally, fair values of interest rate sensitive instruments may be affected by the credit-worthiness of the issuer, prepayment
options, relative values of alternative investments, the liquidity of the instrument and other general market conditions.
The following table shows the Group’s fixed maturities by type of issuer:

            (in Euro million)  
    December 31, 2007   December 31, 2006   December 31, 2005  
    Carrying value   Carrying value   Carrying value  
Government fixed maturities   128,583   130,947   112,139  
Fixed maturities issued by local authorities   6,182   6,493   2,319  
Fixed maturities issued by government agencies and state-owned companies (a)   20,392   23,083   10,713  
Corporate fixed maturities   132,800   123,971   102,236  
Fixed maturities guaranteed by a mortgage   9,629   11,329   7,779  
Fixed maturities issued by other issuers (b)   5,661   2,434   5,829  
Hedging derivatives and other derivatives   569     (274)   36  
FIXED MATURITIES   303,814   297,984   241,052      

(a) Means that the state has a blocking minority interest.

(b) Includes fixed maturity investment funds.

15


Equity Price Risk
The carrying values of investments subject to equity price risk are, in almost all instances, based on quoted market prices as of the
balance sheet dates. Market prices are subject to fluctuation and, consequently, the amount realized in the subsequent sale of an
investment may differ significantly from the reported market value. Fluctuation in the market price of a security may result from,
among other things, perceived changes in the underlying economic characteristics of the investee, the relative price of comparable
investments and general market conditions.

The tables below present the exposure of the Group to equity price risk and whether the potential fluctuations would impact the
shareholders’ equity or the net income of the Group. Furthermore, amounts realized in the sale of a particular security may be
affected by the relative quantity of the security being sold.

                                (in Euro million)  
December 31, 2007   Finance   Services   Energy   Communications   Industrial   Consumer
goods
  Raw
material
  Technology    Other            TOTAL  
Equities available for sale   12,819   2,765   5,056   1,808   4,663   2,910   1,885   1,819   2,074   35,799  
Equities at fair value through profit and loss   2,739   2,243   388   730   1,503   1,314   1,074   324   636   10,952  
Sub-total : Equities held directly   15,558   5,008   5,443   2,538   6,165   4,224   2,959   2,144   2,711   46,750  
Equities held by controlled investment funds (a)   5,519   433   218   139   396   51   168   82   2,087   9,093  
Total Equities as at December 31, 2007   21,077   5,440   5,662   2,677   6,561   4,275   3,127   2,226   4,797   55,843  

(a) Recognized at fair value through profit and loss.

 

                                    (in Euro million)  
December 31, 2006   Finance   Services   Energy   Communications   Industrial   Consumer
goods
  Raw
material
  Technology   Other   TOTAL  
Equities available for sale   16,040   4,020   3,942   1,447   4,355   2,911   1,971   1,860   1,960   38,505  
Equities at fair value through profit and loss   4,224   2,735   282   854   1,642   1,544   876   300   751   13,208  
Sub-total : Equities held directly   20,264   6,755   4,224   2,300   5,997   4,455   2,847   2,160   2,711   51,713  
Equities held by controlled investment funds (a)   2,324   385   347   97   858   653   393   513   3,894   9,465  
Total Equities as at December 31, 2006   22,588   7,140   4,571   2,398   6,856   5,108   3,240   2,672   6,605   61,178  

(a) Recognized at fair value through profit and loss.

 

                                    (in Euro million)  
December 31, 2005   Finance   Services   Energy   Communications   Industrial   Consumer
goods
  Raw
material
  Technology   Other   TOTAL  
Equities available for sale   10,034   3,055   3,214   1,117   3,853   1,892   1,553   1,316   2,394   28,429  
Equities at fair value through profit and loss   3,383   3,530   144   51   511   460   606   226   1,986   10,897  
Sub-total : Equities held directly   13,417   6,585   3,359   1,168   4,364   2,352   2,159   1,542   4,380   39,326  
Equities held by controlled investment funds (a)   3,871   691   352   181   376   53   399   315   2,126   8,364  
Total Equities as at December 31, 2005   17,288   7,276   3,710   1,349   4,740   2,405   2,559   1,857   6,506   47,690  

(a) Recognized at fair value through profit and loss.

 

In accordance with IFRS 7, the Group discloses, in Note 4 of its consolidated financial statements included in Item 18 of this
Annual Report on Form 20-F, quantitative sensitivities of the Group "Embedded Value" (as defined above) to equity price risk.

Foreign Currency Exchange Risk
AXA’s market risks associated with changes in foreign currency exchange rates affecting invested assets held by the Group are
concentrated in a limited number of portfolios of fixed maturities and equity securities denominated in foreign currency. Most of
them back policyholders’ liabilities denominated in the same foreign currency. Those for which this is not the case may be
covered by foreign currency hedges.

16


In accordance with IFRS 7, the Group discloses, in Note 4 of its consolidated financial statements included in Item 18 of this
Annual Report on Form 20-F, quantitative analyses of the sensitivities to foreign exchange risk of held assets and liabilities
denominated in a currency different from local currencies.

Credit Risk
Counterparty credit risk is defined as the risk that a third party in a transaction will default on its commitments.

1) Investment portfolios held by the Group’s insurance operations (excluding assets backing unit-linked products where
the financial risk is borne by policyholders) as well as by banks and holding companies.
These portfolios give rise to counterparty credit risk through the bonds and derivative products held within them.
At December 31, 2007, the breakdown of the Group’s fixed maturity portfolio (€303.2 billion) by credit rating category was as
follows:

2) Asset Backed Securities by underlying type of asset (excluding Collateralized Mortgage Obligations (CMOs)).
At December 31, 2007, the total amount of ABS (excluding CMOs) was €16.2 billion and the economic breakdown was as
follows:

(a) Mainly consumer loan ABS plus some leases and operating ABS assets.

17


3) Breakdown of the ABS portfolio by rating.
The analysis by rating of the ABS portfolio was as follows and shows that 70% were AAA and AA.

4) Receivables from reinsurers resulting from reinsurance ceded by AXA.
The Group’s top 50 reinsurers accounted for 78% of reinsurers’ share of insurance and investment contract liabilities in 2007.
The breakdown of all reserves ceded to reinsurers by reinsurer rating at December 31, 2007 (€11.3 billion) is as follows, taking
into account only the ratings of these top 50 reinsurers.

AXA’s exposure to market risk is reduced by its broad range of operations and geographical positions. Furthermore, a large
portion of AXA’s Life & Savings operations involves unit-linked or related products, in which most of the financial risk is borne
directly by policyholders (approximately 31% of total investments from insurance activities).

Derivative Instruments
AXA enters into derivative transactions primarily to reduce the exposure to market risk and in conjunction with asset/liability
management. The fair value of exchange traded derivative contracts is based on independent market quotations, whereas the fair
value of non-exchange traded derivative contracts is based on either widely accepted pricing valuation models which use
independent third-party data as inputs or independent third-party pricing sources.

When derivatives meet specific criteria, they may be designated as accounting hedges and accounted for as fair value hedge, cash
flow hedge, net investment hedge, or standalone derivatives at fair value.

18


When a derivative is designated as an accounting hedge, the hedging relationship, risk management objective and strategy are
formally documented. The documentation identifies the hedging instrument, the hedged item, the nature of the risk being hedged
and the assumptions used to assess how effective the hedging instrument is in offsetting the exposure to changes in the hedged
item’s fair value attributable to the hedged risk. In the case of a cash flow hedge, this documentation includes the exposure to
changes in the hedged transaction’s variability in cash flows attributable to the hedged risk. At each reporting date, a test is
performed to verify that the hedging instrument continues to be highly effective in offsetting the hedged risk.

Liabilities arising from insurance and investment contracts
Life Reserves

Life Reserves arising from insurance and investment contracts are the largest liability in AXA’s consolidated financial statements
(71% of total liabilities excluding shareholders’ equity at December 31, 2007), representing the amounts payable under
policyholders’ contracts. The Group issues contracts that transfer insurance risk or financial risk or both. Under IFRS, insurance
contracts are those contracts that contain significant insurance risk. Such contracts may also transfer financial risk from the
policyholders to the insurer. Investment contracts are those contracts that have financial risk with no significant insurance risk.
Both types of contracts may contain a discretionary participating feature. In accordance with IFRS 4, insurance and investment
contracts with a discretionary participating feature are accounted for under previous accounting policies provided certain
conditions are met. Investment contracts with no discretionary participating feature are accounted for under IAS 39.

Life reserves include unit-linked liabilities with financial risk borne by policyholders (27% of total liabilities excluding
shareholders’ equity at December 31, 2007). The core liabilities linked to these contracts are estimated on the basis of the fair
value of assets held to back these policies and policyholders carry financial risk in full, except when a GMIB (Guaranteed
Minimum Income Benefit) or GMDB (Guaranteed Minimum Death Benefit) feature is attached to these contracts.

A significant risk of GMDB and GMIB features to AXA is that protracted under-performance of the financial markets could result
in benefits being higher than accumulated contract-holder account balances. Reserves are established for these features on the
basis of actuarial assumptions related to projected benefits and related contract charges. The determination of this estimated
liability is based on models which involve numerous estimates and subjective judgments, including those regarding expected rates
of return and volatility, contract surrender rates, mortality experience, and, for GMIB, election rates. There can be no assurance
that ultimate experience will match management’s estimates.

In addition to providing for risk through establishing reserves, AXA also manages risk through a combination of reinsurance
programs and active financial risk management programs including investment in exchange-traded futures contracts and other
instruments.

Guaranteed annuity purchase rates provide contract-holders with a guarantee that, at a future date, the amount accumulated within
their contract will be able to purchase a lifetime annuity at currently defined rates. The risk to AXA in these features is either that
longevity will improve significantly so that contract-holders electing to exercise this benefit will live longer than assumed in the
guaranteed purchase rates, or that investment returns during the payout period will be lower than assumed in the guaranteed
purchase rates. Reserves are established for these features on the basis of

19


actuarial assumptions related to projected benefits and related contract charges.
The determination of this estimated liability is based on models which involve numerous estimates and
subjective judgments, including those regarding expected rates of return and volatility, contract surrender rate, mortality, and
benefit election rates. There can be no assurance that ultimate experience will not differ from management’s estimates. In addition
to providing for risk through establishing reserves, AXA also manages these risks through asset-liability management programs
including interest rate floors to protect against declines in the interest rate environment.

Non unit-linked liabilities include traditional life insurance contracts, immediate annuities and health insurance contracts.
Generally, amounts are payable over an extended period of time and the profitability of the products is dependent on the pricing of
the products. The principal assumptions used in pricing these policies and in the establishment of liabilities for future policy
benefits are mortality, morbidity, expenses, policy lapse and surrender rates, investment returns, interest crediting rates to
policyholders and inflation. Differences between the actual experience and assumptions used in pricing the policies and in the
establishment of liabilities result in variances in profit and could result in losses.

Long-term actuarial assumptions of future investment yields, mortality, morbidity, policy terminations and expenses are used
when establishing the reserve for life-contingent contract benefits. Discount rate assumptions are determined at the time the policy
is issued based upon prevailing technical rates used in pricing for most contracts (see below in section "Discount rates – Life and
Non life reserves
" a table presenting the average discount rates used). Mortality, morbidity and policy termination assumptions
are based on the respective local regulations and when these are assessed to be inadequate, the Group adjusts the assumptions
based on experience.

Liquidity needs can be affected by fluctuations in the level of surrenders, withdrawals and guarantees to policyholders in the form
of minimum income benefits or death benefits, particularly on variable annuity business.

The following risks generally apply:

 –  Interest rate risks:

 – A rise in bond yields reduces the value of bond portfolios, which may lead to a liquidity risk in these portfolios or a real loss
of value if the rise in yields is related to a rise in inflation.

 – Lower yields on fixed-income investments increase the value of bond portfolios, and, therefore, present risk for certain
contracts that provide guaranteed rates. On the other hand, a prolonged period of low yields would have an impact on the
pricing of these products. These types of risks are monitored by ALM (Asset / Liabilities Management) techniques.

–   Foreign-exchange rate risk : commitments in foreign currencies are largely backed by assets in the same
currencies, or partially hedged.

–   Inflation is a risk (more specifically in the Property & Casualty business), since it increases the compensation payable to
policyholders, with the effect that, if it is not adequately taken into consideration, actual claims payments may exceed the
reserves set aside. This risk is particularly significant for long-tail businesses.

Liabilities arising from insurance and investment contracts also include liabilities arising from policyholder’s participation. In
addition to participation irrevocably recognized in accordance with contractual and statutory obligation, this liability notably
includes the share of realized gains and losses arising from financial securities designated as available for sale category which
would be attributed to policyholders to the extent they participate in such gains and losses on the basis of contractual or statutory
obligations when realized.

The costs of acquiring new and renewal business that vary with and are primarily related to the production of new business related
to insurance and investment contracts with a discretionary participating feature under IFRS (based on previous accounting
principles) are specifically identified and deferred by establishing an asset, referred to as deferred

20


policy acquisition costs ("DAC").
The extent to which acquisition costs are deferred is a significant factor in that business’ reported profitability in any
given period. In addition, and in respect of in-force business related to insurance and investment contracts with a discretionary
participating feature acquired in a business combination, the present value of future profits attributable to that business is recorded
at acquisition date, and is named Value of Purchased Life Business in Force ("VBI"). In principle, the value of related
policyholders’ liabilities at the date of acquisition net of VBI represents the estimated fair value of such business on such date as
defined by market practice under previous accounting policies still in use under IFRS 4. The amount of VBI calculated will
depend on assumptions used to estimate the future profitability of the contracts acquired including the discount rate used. In
respect of amortization of DAC and VBI on insurance and investment contracts with a discretionary participating feature under
IFRS, the amortization may be affected by changes in estimated gross profits or margins principally related to fees, investment
return, mortality and expense margins, lapse rates, and anticipated surrender charges. Should revisions to estimated gross profits
or margins be required, the effect is reflected in earnings in the accounting period in which the assumptions are revised.
Recoverability is assessed at least on an annual basis.

With respect to investment contracts with no discretionary participating features under IFRS, an asset may be recognized
representing the contractual right to benefit from providing investment management services under certain conditions: limited to
incremental costs, provided they can be identified separately, measured reliably and it is probable that they will be recovered.

The amortization may be affected by changes in estimated gross profits under IFRS (previous GAAP).

In accordance with IFRS 7, the Group discloses in Note 4 of its consolidated financial statements included in Item 18 of this
Annual Report on Form 20-F quantitative sensitivities of the Group "Embedded Value" (as defined previously in the investment
risk factors section) to interest risk and equity price risk.

Non-life reserves
AXA’s liabilities also include non-life reserves (9% of total liabilities excluding shareholders’ equity at December 31, 2007). The
Property & Casualty claims reserves are determined on a basis to cover the total cost of settling an insurance claim. With the
exception of disability annuities and workers’ compensation liabilities that are deemed structured settlements, the claims reserves
are not discounted. The claims reserves include the claims incurred and reported in the accounting period, claims Incurred But Not
Reported ("IBNR") in the accounting period along with reserves not enough reported ("IBNER" – Incurred But Not Enough
Reported) and costs associated with the claims settlement management. The claims reserving is based upon estimates of the
expected losses for all lines of business: reported reserves are measured file by file by the claims department, additional reserves
for IBNR and IBNER are assessed through various statistical and actuarial methods. The full process takes into consideration
appropriate judgment on the anticipated level of inflation, regulatory risks and the trends in cost and frequency of claims, actual
against estimated claims experience, other known trends and development, and local regulatory requirements. Calculations are
initially carried out locally by the technical departments in charge and are then reviewed by local risk management teams. In
addition to the reviews performed at entity level or, eventually, by the local supervisory authorities, Group Risk Management has
an annual review program to ensure the validity and coherence of the models used in the Group in accordance with actuarial
principles and accounting rules in force.

AXA is required by applicable insurance laws and regulations and generally accepted accounting principles to establish reserves
for outstanding claims (claims which have not yet been settled) and associated claims expenses that arise from its Property &
Casualty and International Insurance operations. AXA establishes its gross insurance liabilities, or claims reserves, by product,
type of insurance coverage and year, and charges them to income as incurred.

21


Claims reserves (also referred to as "loss reserves") fall into two categories as follows:

–   Reserves for reported claims and claims expenses. These reserves are for outstanding claims which have not yet been
settled and are generally based on undiscounted estimates of the future claims payments that will be made in respect of the
reported claims, including the expenses relating to the settlement of such claims; and

–   Reserves for incurred but not yet (or not enough) reported ("IBN(E)R") claims and claims expenses. IBNR reserves are
established on an undiscounted basis, to recognize the estimated cost of losses that have occurred but have not yet been
notified to AXA. These reserves, like the reserves for reported claims and claims expenses, are established to recognize the
estimated costs, including the expenses associated with claims settlement, necessary to bring claims to final settlement.

The amount of IBNR is calculated as the difference between the estimated ultimate unpaid liability and the reserves for reported
claims. Ultimate unpaid liabilities are calculated by actuaries for each material line of business according to the methods described
below.

The initial estimation of the original gross claims reserve is based on information available at the time the reserve was originally
established. However, claims reserves are subject to change due to the number of variables that affect the ultimate cost of claims,
such as: (i) developments in claims (frequency, severity and pattern of claims) between the amount estimated and actual
experience, (ii) changes arising from the occurrence of claims late in the financial year for which limited information may be
available at year-end, (iii) judicial trends and regulatory changes, and (iv) inflation and foreign currency fluctuations.

When assessing claims reserves, actuaries do not rely on one individual calculation but use many methods such as:

– Triangle development methodologies (e.g., Chain-Ladder or Link Ratio) in which historical loss patterns are applied to
actual paid losses and reported losses (paid losses plus individual case reserves established by claim adjusters) for an
accident year or a report year to create an estimate of how losses are likely to develop over time.

– "A priori assumptions methods" (e.g., Expected loss ratio).

– Mixed methods (e.g., Bornhuetter-Ferguson, Cape Cod).

– Exposure methods and frequency and severity estimations.

Based on both internal and common industry best practices, methods and assumptions are selected depending on data availability,
reported claims to date, local regulations, claims management practices, pricing, underwriting information and the nature of the
business or claims type (coverage type, large or normal claims, prior or recent accident year). In order to obtain a single set of
homogeneous claims, after statistical analysis and market considerations, several assumptions are selected through discussions
with claims managers, pricing actuaries and underwriters.

The assumptions used depend on economic, social and environmental factors as well as legislative and political features which are
key drivers of reserve variability and need to be assessed.

Data are aggregated at a more refined level of detail than line of business (e.g., by geography, distribution network, and other
factors depending on product features, local regulation and other factors) to obtain homogenous sets of claims and ensure proper
reserves analysis. As part of this process, actuaries will restate data where needed to ensure that estimates are in line with
underlying risks.

Coverage types are usually classified as either long tail or short tail, based on the average length of time between the event
triggering the claim and the final settlement of the claim (duration). However, the duration varies from one country to another
even for the same line of business depending on the entities’ claims management, local market practices, specific coverage
existing under the local environment and type of products written.

22


The description below is intended to give an indication of some specific methods used by type of tail or lines of business. Certain
additional details are included for segments which require specific treatment.

a) Short tail business
For short tail business, claims are reported and settled quickly resulting in less estimation uncertainty. All the methods mentioned
above can apply. The main line of business which falls under this classification is Property.

This line of business includes motor own damage, commercial and personal property and can be exposed to natural event claims,
which are generally assessed through exposure, instead of development, techniques.

For all the other types of claims, the methods mentioned above are usually applied.

Due to local statutory specificities and some specific policies’ extended coverage, the property sometimes aggregates short-term
business insurance with long tail ones (e.g. commercial liabilities), which cannot be assessed separately.
Property also includes local pools whose reserves are set separately on a local industry-consistent basis.

b) Long tail business
Because of its long duration ("time between the event triggering the claim and the final settlement of the claim"), this type of
business is exposed to greater estimation uncertainties and variability from one estimate to another, and is heavily influenced by
changes in claims management practices and change of local environment assumptions (e.g., increase of indemnities, litigation). It
is thus usual to perform a greater number of calculations, by using various techniques, various scenarios and a range of
assumptions.

More recent periods suffer from a lack of information (very small amount of claims paid or even incurred) and accordingly
development methods are usually not applicable for recent years.

BODILY INJURY (MOTOR AND LIABILITY)
Bodily injury claims reserves represent the most complex part in assessing motor and personal liability lines of business. Such
reserves are valued following the way individual cases are assessed depending on the nature of the cases and their evolution. The
impact of lump-sum payments against annuities is taken into account including the way both are reported for financial statement
purposes: claims reserves, temporary and definitive annuities.

With an increase in claims severity and litigation decisions, the input of legal and other experts is required, in addition to actuarial
expertise and methods.

ANNUITIES
Some workers’ compensation and casualty coverage create annuities for individuals as a settlement. Many of the annuity
calculations are mandated by public authorities in terms of technical assumptions and, in any event, depend on the relevant
market.
In particular, the assumptions include technical discount rates and mandatory mortality tables that should be applied, and, in many
cases, have to be adjusted based on other parameters such as indemnity schemes for professional, physical, moral factors, and
third-party assistance.

THIRD-PARTY LIABILITY
These policies are usually subject to substantial loss development over time as facts and circumstances change in the years
following the policy issuance. This line of business requires projection of various trends including future claims, inflation, and
judicial interpretations. Moreover, depending on practices in local markets, policies are not underwritten

23


on the same occurrence basis (e.g., on claim made or accident year basis). In those cases, actuaries will ensure that estimates
are consistent with insured liabilities over time.

This line of business requires a review of the different clauses of policies, as well as the local market exposures to social,
economical and jurisprudential trends. Reserves linked to specific liability business need to be set not only using AXA
subsidiaries’ historical statistical experience but also based on market figures, trends and benchmarks.

CONSTRUCTION
As a result of multi-year exposure, reserves for construction insurance are subject, in various countries, to statutory requirements
including specific reserves for claims that are not yet incurred and additional reporting. Actuarial techniques combining regular
triangle analyses with severity and frequency analyses allow assessment of those reserves.

LOSS ADJUSTMENT EXPENSES (LAE)
The same general approach applies to claims expenses reserves (Loss Adjustment Expenses-LAE) which are also assessed locally
based on local cost allocation analysis and standard methods. Actuaries check on a regular basis if such methods and
corresponding assumptions are appropriate.

Reserve estimations
As mentioned above, actuaries analyze the main underwritten risks by distribution network and other factors to obtain
homogenous sets of claims and ensure proper reserves analysis in accordance with applicable accounting and actuarial standards.
The specific distinction varies locally depending on products features and local regulation.

Estimating the ultimate cost of claims and claims expenses is an inherently uncertain and complex process involving a high degree
of judgment and is subject to evaluation of numerous variables.

In addition to the matters discussed above, another general consideration is the size of the claims. Certain methods require that
segments take into account a homogeneous average cost of losses. All methods require that atypical large losses are excluded from
segments for forecast periods. Some large individual claims, such as natural events, industrial property and liability claims,
require specific estimation methods which need to be performed in conjunction with the claims department (and catastrophe
experts if needed).

Reserve estimations are performed on a local basis and the assumptions are set according to the local environment in accordance
with applicable accounting and actuarial standards. Local assumptions generally include:

– inflation assessment,

– legal trends (e.g., punitive damages), and

– impact of any deviation compared to average experience (e.g., weather conditions, economic environment).

All assumptions are highly dependent on the local environment.

While the Group ensures that the actuarial techniques are in line with the latest best practices observed internally and in the
industry, the Group believes that adoption of revised techniques should have no significant impact on reserve development.

Since 2002, the amount of positive (or adverse) developments accounted at each year-end did not exceed plus 4% (minus 4%) of
the opening claims reserves (excluding the International Insurance segment).

24


Management believes that for the same scope of business and within a consistent framework for reserves review organization and
process, future positive or adverse development (accounted at each year-end) can be reasonably expected to be between +6% and
-6%. This range may, however, be exceeded under certain exceptional circumstances (such as changes in the legal environment,
very large claims or changes to the environment such as for the reinsurance market, which may also change the Group’s
underwriting policy or strategy).

In line with the decentralized organization of the AXA Group, the local chief reserving actuary of each operating insurance
company is responsible for the assessment and setting of the claims reserves. An internal review is performed by AXA’s Risk
Management organization. In addition, AXA Liabilities Managers is responsible for the management and assessment of major
run-off reserves. After discussing with claims managers, pricing actuaries, underwriters and local management, several
assumptions are selected for a single set of homogeneous claims. This discussion results in a range of reasonable estimates.
Considering the level of risk and uncertainties of future experience for each line of business in the local environment, the Group
records the best estimate within the range selected by the actuaries.

The methods and processes to set the various local assumptions used for the reserve calculation have been consistent for the
periods presented. During these periods, there have been no significant changes to key assumptions resulting in any variation in
reserve estimates which materially impacted the income statement, except as discussed in the Operating and Financial Review and
Prospects.

The Property & Casualty loss ratio reported for full year 2007 by the Group, as a result of the reserve setting process described
above, is presented in the following table by major lines of business.

Changes in the loss ratio may occur as the result of additional information related to claims which occurred prior to the balance
sheet date. When actual experience differs from the original estimation with respect to the variables discussed above, including
developments in claims, judicial trends and inflation, the Group re-estimates the corresponding loss ratio. A change of 1% in the
loss ratio (under the assumption that all other factors are stable) would impact the technical result of the Group (through reserve
adjustments accounted for in future periods) as follows:

Property & Casualty   Loss ratio for FY 2007   Impact on technical charges of changing the loss ratio
(in Euro million)
    in %   1%   -1%  
Motor   74.5   (100)   100  
Property   68.5   (63)   63  
Liability   60.1   (22)   22  
Health   73.9   (21)   21  
Other   62.9   (41)   41  
Total   69.7   (248)   248  

Historically, similar movements in the loss ratio have been observed for the total non-life portfolio.

Non life intangible assets related to the future business
In a business combination, non-life insurance contracts may give rise to the recognition of customer intangible assets relating to
the new business to be underwritten with identified customers if such values can be measured reliably. Such intangible assets,
measured on the basis of new business values, mostly relate to expected renewals, based on estimates about retention rates, and a
set of assumptions, including the expected combined ratios as estimated at the date of acquisition.

25


Discount rates – Life and Non life reserves
As shown in the table below, as at December 31, 2007, 90% of Life & Savings reserves (excluding unit-linked contracts) are
discounted, of which 13% are subject to a revision of the discount rate, and 77% retain the rate set at inception, subject to the
liability adequacy test described in Note 1 to the consolidated financial statements included in Item 18 of this Annual Report on
Form 20-F.

By convention, contracts with zero guaranteed rates are deemed undiscounted, except for products offering guaranteed rates
updated annually and for one year: these contracts are presented in discounted reserves. Reserves for savings contracts with non-
zero guaranteed rates are discounted at the technical interest rate. Contracts for which the assumptions are revised in the financial
statements at closing mainly consist of certain U.K. With-Profit contracts and reserves for guarantees (Guaranteed Minimum
Death Benefits, etc.).

In Property & Casualty business, most reserves (94% as at December 31, 2007) are not discounted, with the exception of
disability annuities and workers’ compensation liabilities that are deemed structured settlements and where the discount rate is
revised regularly. Such reserves are not sensitive to interest rate risks in the financial statements.

The rates presented in the table below are weighted average rates for all the portfolios under consideration. For contracts with
guaranteed rates that are revised annually, rates are crystallized at the closing date.

                    (in Euro million)
    December 31, 2007   December 31, 2006 Restated (b)   December 31, 2005
    Carrying
value
  Average
discount
rate %
  Carrying
value
  Average
discount
rate %
  Carrying
value
  Average
discount rate %
 
Life & Savings – locked-in discount rate (a)   225,765   2.82%   235,220   3.00%   193,557   3.40%  
Life & Savings – unlocked discount rate (b)   39,094   3.19%   43,438   3.31%   30,615   3.17%  
Life & Savings – undiscounted reserves   29,406       20,459       7,976      
Sub-total Life & Savings   294,264       299,117       232,148      
Non Life – locked-in discount rate (a)   2,090   4.25%   2,172   4.16%     2,082   3.57%  
Non Life – unlocked discount rate   1,490   2.64%   753   2.13%   844   2.17%  
Non Life – undiscounted reserves (b)   54,438       55,046       44,942      
Sub-total – Non Life   58,018       57,971       47,868      
Total insurance and investment contracts   352,283       357,088       280,017      

(a) Subject to liability adequacy tests.
Amounts are presented excluding the impact of derivatives on insurance and investment contracts (presented in Note 19.4 of the consolidated financial statements included in Item 18 of this Annual Report) and excluding liabilities related to unearned revenues and fees, and to policyholders participations. Liabilities relating to contracts where the financial risk is borne by policyholders are also excluded.

(b) In accordance with IFRS 3, i.e. within 12 months following the acquisition date, the Group has adjusted certain items impacting the allocation of Winterthur purchase price.

In accordance with IFRS 7, the Group discloses, in Note 4 of its consolidated financial statements included in Item 18 of this
Annual Report on Form 20-F, quantitative sensitivities of the Group "Embedded Value" (as defined previously in the investment
risk factors section) to interest risk and equity price risk.

Reinsurance
The Group uses reinsurance ceded as an element of its overall risk management program primarily to mitigate Property &
Casualty losses that may occur from catastrophes. Accordingly, its impact on the cash flows of the Group may vary widely from
one year to another, depending on the occurrence or declaration of related claims under this coverage. However, the Group’s
consolidated financial position and results of operations are not significantly dependent on the changes in the net result of
reinsurance ceded as such changes are offset by corresponding changes in gross technical charges.

26


In 2007 and 2006, the overall net impact of this activity to AXA was relatively small; approximately 5% of total Property &
Casualty premiums and liabilities were ceded as disclosed in Note 14 of the consolidated financial statements included in Item 18
of this Annual Report on Form 20-F.

Since the 1980’s, non-proportional reinsurance has been replacing traditional proportional reinsurance. The main consequence of
this long-term market trend to more coverage of peak and catastrophe risks has been an overall reduction of premiums ceded to
reinsurers, since non-proportional treaties generally cede less premiums than proportional treaties.

Under the assumption that the reinsurance market has adequate capacity, the Group conducts actuarial analyses and modelling of
its ceded risks in parallel to the work done by reinsurers. As a result of these analyses, since 2002, the Group has been able to
retain additional levels of risk through an internal Group reinsurance pool (which would have been otherwise ceded to external
reinsurers). Due to the mutualisation of risk through the internal reinsurance pool, the Group has been able to reduce the overall
risks ceded to external reinsurers and purchase on the reinsurance market a cover that is more effective than the incremental
addition of local reinsurance covers through individual subsidiaries. The level of catastrophe cover purchased by the Group (and
particularly the main one covering European windstorms) is adjusted every year according to the change in exposure of the Group.

Perpetual debt
Subordinated Perpetual debts and any related interest charges are classified in shareholders’ equity or liabilities under IFRS
depending on contract clauses.

For a financial instrument (other than those that may or will be settled in the issuer’s own equity instrument) to be classified as a
financial liability under IAS 32, the issuer must have a contractual obligation either:

– to deliver cash or another financial asset to the holder of the instrument, or

– to exchange financial assets or financial liabilities with the holder under conditions that are potentially unfavorable to the
issuer.

The IAS Board confirmed in 2006 that such a contractual obligation could be established explicitly or indirectly, but it must be
established through the terms and conditions of the instrument. Thus, by itself, economic compulsion would not result in a
financial instrument being classified as a liability under IAS 32. The Board also stressed that IAS 32 requires an assessment of the
substance of the contractual arrangement. It does not, however, require or permit factors not within the contractual arrangement to
be taken into consideration in classifying a financial instrument. Given the complexity of certain instruments, there is an element
of judgement when classifying such debts.

Employee benefits
AXA provides defined benefit pension plans in various forms covering eligible employees across its operations. There are several
assumptions that impact the actuarial calculation of pension plan obligations (the projected benefit obligation) and, therefore, the
net periodic pension cost reflected in the financial statements. The net periodic pension cost is the aggregation of the
compensation cost or service component of benefits promised, interest cost resulting from deferred payment of those benefits, and
investment returns from assets dedicated to fund those benefits. Each cost component is based on best estimates of long-term
actuarial and investment return assumptions. The assumptions used may differ from actual result due to changing financial market
and economic conditions, changes to terms and conditions of the plans, and longevity of participants. Actuarial gains and losses
arising are recognized in retained earnings under IFRS as a component of the SORIE (Statement Of Recognized Income and
Expense).

27


Income tax
Deferred income tax assets and liabilities result from temporary differences between accounting and tax values of assets and
liabilities and from net operating tax loss carry forwards, if any. Net deferred tax assets on the balance sheet are recognized only
to the extent that it is probable that future taxable profit will be available. AXA evaluates all evidence available to management in
order to determine if a deferred tax asset is recognized.

28


Consolidated operating results

Consolidated gross revenues

                    (in Euro million)  
Consolidated gross revenues (a)   FY 2007   FY 2006
Restated (b)
  FY 2006
Published
  FY 2005
estated (b)
  FY 2005
Published
  2007/
2006
 
Life & Savings   59,845   49,952   50,479   44,585   45,116   19.8%  
     of which Gross written premiums   57,773   48,268   48,786   42,972   43,496   19.7%  
     of which Fees and revenues from investment contracts with no participating feature   740   608   608   509   509   21.7%  
Property & Casualty   25,016   19,510   19,793   18,600   18,874   28.2%  
International Insurance   3,568   3,716   3,716   3,813   3,813   -4.0%  
Asset Management   4,863   4,406   4,406   3,440   3,440   10.4%  
Banking (c)   339   377   377   424   424   -10.1%  
Holdings and other companies (d)   2   4   4   4   4   -39.0%  
TOTAL   93,633   77,966   78,775   70,865   71,671   20.1%  

(a) After elimination of intercompany transactions.

(b) Restated means the restatement of The Netherlands' activities as discontinued operations.

(c) Excluding net realized capital gains and change in fair value of assets under fair value option and derivatives, net banking revenues and total consolidated revenues would respectively amount to €320 million and €93,617 million for the period of December 31, 2007.

(d) Includes notably CDOs and real estate companies.

The following commentary on segment contribution to AXA’s consolidated gross revenues is based on financial data, as detailed
in Note 3 "Segmental Information" to the consolidated financial statements included in Item 18 of this Annual Report on Form
20-F.

YEAR ENDED DECEMBER 31, 2007 COMPARED TO YEAR ENDED DECEMBER 31, 2006

On a comparable basis means that the data for the current year period were restated using the prevailing foreign currency
exchange rates for the same period of prior year (constant exchange rate basis). It also means that data in one of the two periods
being compared were restated for the results of acquisitions, disposals and business transfers (constant structural basis) and for
changes in accounting principles (constant methodological basis). In particular, comparable basis for revenues in this document
means including Winterthur and net of intercompany transactions in both periods.

Consolidated gross revenues for the year ended December 31, 2007 reached €93,633 million, up 20% compared to the year ended
December 31, 2006.

Taking into account the restatements to comparable basis, mainly the impact of restating 2006 for Winterthur (€13,401 million or
-18.1 points) and the appreciation of the Euro against other currencies (€2,830 million or +3.6 points, mainly from the Japanese
Yen and U.S. Dollar), gross consolidated revenues were up 5% on a comparable basis.

29


Life & Savings
Life & Savings gross revenues were up 20%, or up 5% on a comparable basis, to €59,845 million net of intercompany
transactions, (or €59,879 million before the elimination of intercompany transactions), mainly driven by the United States,
Belgium, and France.

United States gross revenues increased by €854 million (+6%) to €16,244 million, on a reported basis. On a comparable basis,
gross revenues increased by €2,323 million (+15%):

– Variable Annuity premiums increased by 19%. First year Variable Annuity premiums increased by 22%, with Wholesale
channel Variable Annuity sales up 27%.

– Life premiums increased by 7%, including a 34% increase in first year Life premiums driven by strong Wholesale channel
growth due to strong Fixed Universal Life sales.

– Other revenues (mainly from mutual funds) were up 18% due primarily to higher Asset Management fees.

France gross revenues increased by €250 million (+2%) to €15,052 million with positive contribution of both Individual and
Group businesses. In Individual lines, the Accumulator-type product "Capital Ressources" was launched in March 2007. Group
business growth was largely driven by Life & Health while Group retirement remained stable following a strong 2006
performance.

Japan gross revenues increased by 2% to €5,116 million on a reported basis. On a comparable basis, and excluding group pension
transfers (€51 million versus €299 million last year), revenues increased by €254 million (+5%) to €5,070 million, driven by:

–-  Life (42% of gross revenues): revenues decreased by 4% (€-88 million) to €2,140 million driven by lower Endowment,
Whole Life, Group Life and LTPA regular premiums (€-120 million), partially offset by higher Increasing Term revenues
(€+35 million) reflecting the inforce block growth following strong sales until its discontinuation in March 2007.

– Health (26% of gross revenues): revenues increased by 18% (€+215 million) to €1,299 million due to higher conversions
following a one time 1Q07 program which upgraded selected old Medical Whole Life policies to more recent product
generations (€+78 million), and the move from lower margin Term products to more profitable medical products (€+68
million). Winterthur’s revenues increased by €68 million mainly driven by Cancer sales.

–  Investment & Savings (32% of gross revenues excluding group pension transfers): revenues increased by 8% (€+127
million) to €1,631 million with higher revenues from the launch of the Accumulator type products (€+540 million) and
strong sales of other variable annuity products (€+55 million) being partially offset by (i) €-316 million lower SPA
revenues (US dollar-denominated variable annuity product) following strong "post-launch" salaried salesforce sales in Q1-
2006 and (ii) lower regular premium individual fixed annuities (€-132 million), this product being no longer actively
promoted as part of Bancassurance’s transition to higher margin variable annuity products.

 

United Kingdom gross revenues increased by €336 million (+8%) to €4,628 million on a reported basis, of which €73 million
was due to the inclusion of Thinc Group (formerly Thinc Destini, a financial intermediary business). On a comparable basis,
including Winterthur in both periods and excluding Thinc Group in 2007, gross revenues increased by €26 million (+1%):

–  Investment & Savings (80% of gross revenues) were down 2% largely due to lower volumes of Onshore Bond business
and Offshore cash sales.

–  Life Insurance Premiums (20% of gross revenues) increased by 13% due to increased volumes of Creditor Insurance
single premiums and higher AXA Protection Account and direct business volumes.

30


Germany gross revenues increased by €2,520 million (+68%) to €6,201 million on a reported basis. On a comparable basis,
revenues decreased by €51 million (-1%) mainly due to lower traditional endowment business and lower Group business resulting
from reduced share in medical councils as well as high single premium business in 2006. The decline was partly offset by
Investment & Savings both unit linked (especially "Twinstar" products) and non unit-linked premiums ("WinCash" product) as
well as continuous growth in Health.

Switzerland gross revenues reached €4,133 million. On a comparable basis, gross revenues decreased by €40 million (-1%):

–  Group Life decreased by €37 million (-1%) to €3,423 million as 2006 recorded a non-recurring high level of premiums
related to the transfer of vested benefits on new contracts.

–   Individual Life increased by €22 million (+3%) to €693 million, due to strong growth in unit-linked business of €74
million (+190%) to €108 million whereas traditional business decreased by €52 million (-8%) to €585 million.

 

Belgium gross revenues increased by €563 million (+22%) to €3,075 million on a reported basis. On a comparable basis, gross
revenues increased by €315 million (+11%) due to the increase in both Individual Life & Savings (+9%) and Group Life &
Savings (+22%).

–  Individual Life & Savings revenues increased by 9% to €2,453 million driven by the growth of unit-linked products
(+48% to €432 million) with the reclassification of AXA Life Invest products from investment to insurance products and
the launch of TwinStar in September 2007, and non unit-linked products (mainly Crest 40) by 5% to €1,707 million.
Traditional Life products decreased by 4% to €313 million.

–  Group Life & Savings revenues increased by 22% to €619 million due to exceptional 2007 high production (including a
€63 million single premium contract).

Mediterranean Region (The scope of the Mediterranean Region includes Italy (AXA alone), Spain (Winterthur + AXA),
Portugal, Greece (Alpha Insurance, consolidated as of 01/01/2007), Turkey and Morocco. For volume indicators the comparable
basis reflects this scope, for both 2006 and 2007).
Gross revenues increased by 30% on a reported basis to €1,924 million. On a comparable basis (including Winterthur in Spain and
Alpha Insurance in Greece for both periods), revenues were down 5% (€-87 million) mainly due to (i) a non recurring single
premium in Spain, related to the outsourcing of pension funds, in 2006 (€-116 million), (ii) a lower amount of activity with
institutional clients (€-43 million), as well as (iii) a decrease on other non unit-linked individual saving products (€-84 million)  - 
such as Protezione Patrimonio or Flexiplus  -  driven by the current market interest rate trend, which reduced the commercial
attractiveness of these products, and due to a switch of new business towards a more profitable business. These were partially
offset by the higher sales of individual unit-linked products  -  mainly driven by the new Accumulator product launched mid
March in Spain and early June in Italy, increasing by €+151 million.

Australia / New Zealand gross revenues were up €131 million to €1,384 million (+7% on a comparable basis), given:

–  Revenues from mutual fund and advice business increased by €94 million (+23% on a comparable basis) to €367 million
due to continuing growth in funds under management.

–  Gross written premiums and fees increased by €37 million to €1,018 million (+2% on a comparable basis), reflecting the
impact of a shift from old to new style superannuation products that offset the growth in individual Life & Savings. As a
reminder, new superannuation products are now predominantly sold through the Summit and Generations platforms and are
thus accounted for on a fee basis  -  in contrast to old style superannuation products that were treated as insurance
contracts.

Hong Kong gross revenues were up €216 million (+21%) to €1,257 million on a reported basis. This included €110 million from
MLC and €236 million from Winterthur. On a comparable basis - excluding the impact of MLC but including Winterthur in both
periods and at constant exchange rates - gross revenues were up 4% reflecting the

31


successful launch of a new unit linked investment & savings type product for which only fee income rather than premium
contributions are accounted for in gross revenues.

Property & Casualty
Property & Casualty gross revenues were up 28% to €25,016 million net of intercompany transactions (or €25,180 million
before the elimination of intercompany transactions), or +4% on a comparable basis mainly driven by United Kingdom &
Ireland (+8% to €5,076 million), Mediterranean Region (+5% to €5,276 million), France (+3% to €5,330 million), and Germany
(+2% to €3,506 million).

Personal lines (60% of P&C premiums) were up 5% on a comparable basis, stemming from both Motor (+5%) and Non-Motor
(+5%).

Motor revenues grew by 5% mainly driven by (i) the Mediterranean Region up 8%, following new product launches in 2006 and
2007 (mainly "Protezione al volante" in Italy and "Dynamic 2" in Spain) and new segmented tariffs notably in Turkey, (ii) the
United Kingdom & Ireland up 21%, largely as a result of the new business written through its Internet company, Swiftcover,
which benefited from increased volumes through aggregator websites, (iii) Asia up 15% which confirmed its strong momentum,
and partly offset by (iv) Germany (+1%), France (+0%) and Switzerland (-1%), recording positive net new contracts in a context
of softening markets.

Non-Motor revenues increased by 5% mainly driven by (i) the United Kingdom & Ireland (+9%) as a result of strong performance
in both Health and Travel businesses, (ii) Mediterranean Region (+6%) with positive contribution of all business lines, and (iii)
France and Germany, both up 2%.

Commercial lines (38% of P&C premiums) recorded a +2% growth on a comparable basis driven by both Non-Motor (+2%) and
Motor (+2%).

Motor revenues were up 2%, with strong growth (i) in Germany (+5%) due to a higher number of vehicles in the existing fleets,
(ii) in France (+2%) following increase in tariffs, and (iii) in the United Kingdom & Ireland (+5%), partly offset by (iv)
Mediterranean Region (-4%) due to a lower contribution from former Winterthur fleet rental business further to a strategic
decision, and (v) Belgium (-2%).

Non-Motor revenues were up 2%, with France (+7%) mainly driven by Construction and the United Kingdom & Ireland (+3%)
largely driven by Health, partly offset by Belgium (-4%) due to the non-renewal of some less profitable contracts.

International Insurance
International Insurance revenues were down 4%, or up 7% on a comparable basis, to €3,568 million net of intercompany
transactions (or €3,703 million before elimination of intercompany transactions) attributable to both AXA Corporate Solutions
Assurance and AXA Assistance.

AXA Corporate Solutions Assurance revenues increased by €116 million (or +7%) to €1,805 million driven by portfolio
developments in Marine, Property, Motor and Construction.

AXA Assistance revenues increased by 13% on both reported and comparable bases to €699 million mainly due to Home Serve
business in the United Kingdom (€+27 million), increased premiums in Travel business in Germany (€+15 million) and a good
commercial performance in France.

32


Asset management
Asset Management revenues increased by 10% or +17% on a comparable basis to €4,863 million net of intercompany
transactions (or €5,283 million before elimination of intercompany transactions) driven by higher average Assets under
Management (+21% on a comparable basis), partly offset by lower performance fees at AllianceBernstein, especially on hedge
funds.

AllianceBernstein revenues increased by 6%, or 15% on a comparable basis to €3,130 million, largely due to higher base fees
(+25%, with +28% in institutional clients, +20% in retail clients and +24% in private clients) driven by higher average assets
under management (+21%), partly offset by lower performance fees (-66%), especially on hedge funds. Other revenues (mainly
distribution fees, institutional research and other fees) were up 10%.

Assets under management ("AUM") decreased by €0.7 billion to €543 billion, as the strong global net inflows of €23 billion
across all client categories (€13 billion from institutional clients, €4 billion from retail clients and €6 billion from private clients)
and the €37 billion market appreciation were offset by a negative €62 billion exchange rate impact.

AXA Investment Managers revenues increased by 20% or 21% on a comparable basis to €1,732 million mainly due to higher
average assets under management. The favorable client and product mix evolution was offset by a slight decrease in performance
fees.

AUM increased by €64 billion to €548 billion from year-end 2006 (+13% on a reported basis). This variation was driven by €5
billion Net New Money (including €5 billion from third-party institutional clients), €7 billion market appreciation and €68 billion
change in scope (mainly from the integration of Winterthur), partly offset by €-16 billion unfavorable exchange rate variation.

Banking
Revenues were down 10% or -4% on a comparable basis to €339 million (or €374 million before elimination of intercompany
transactions), mainly attributable to AXA Bank Belgium (-15% on a comparable basis to €216 million) in the context of an
unfavorable yield curve and higher refinancing costs following higher short term interest rates.

YEAR ENDED DECEMBER 31, 2006 COMPARED TO YEAR ENDED DECEMBER 31, 2005

Consolidated gross revenues for the year ended December 31, 2006 were €77,966 million, an increase of 10% compared to the
year ended December 31, 2005. On a constant exchange rate basis, i.e. excluding notably the impact of the appreciation of the
Euro against other currencies mainly from the Japanese Yen and U.S. dollar), gross consolidated revenues were up 9%.

Life & Savings
Life & Savings gross revenues were up 12% to €49,952 million after elimination of intercompany transactions (or €49,959 million
before elimination of intercompany transactions), driven by all significant countries except Belgium and Mediterranean Region.

France gross revenues increased by €1,565 million to €14,802 million before elimination of intercompany transactions. Net of
intercompany transactions, gross revenues increased by €1,569 million to €14,797 million mainly due to investment & savings
premiums which increased by €1,331 million (+12%) to €10,238 million. Individual unit-linked

33


premiums were up €606 million (+28%) to €2,771 million following successful commercial campaigns.
Group retirement increased by €598 million (+62%) to
€1,562 million, mainly due to new business inflows, while individual non unit-linked investments and savings were up 2% to
€5,905 million.

United States gross revenues increased by 10% to €15,390 million (before elimination of intercompany transactions) on a current
exchange rate basis, or 13% on a comparable basis (excluding Advest revenues), primarily driven by increases in First Year
Variable Annuity premiums (up 24%) and First Year life premiums (up 13%) partially offset by a planned 68% decrease in Fixed
Annuities. Other revenues were up 20% on a comparable basis due primarily to higher asset management fees.

Japan gross revenues increased by 6%, or 11% on a constant exchange rate basis, to €5,027 million. Excluding (i) group pension
transfers (€314 million versus €22 million last year) and (ii) the conversion program started in January 2003 towards Life (€41
million versus €98 million last year) and Health (€73 million versus €165 million last year), premiums increased by 9% on a
constant exchange rate basis driven by:

– Investment & Savings (31% of gross revenues excluding group pension transfers): revenues increased by 3%, or 8% on a
constant exchange rate basis (€+109 million), to €1,435 million due mainly to €391 million higher sales of SPA (single
premium U.S. dollar-denominated index-linked annuity product) and €83 million sales of the newly launched Accumulator
product (single premium U.S. dollar-denominated variable annuity product), partially offset by a reduction in Fixed
Annuity contribution (€–352 million) as part of the planned transition towards variable type products.

– Life (46% of gross revenues excluding conversions): revenues increased by 6%, or 11% on a constant exchange rate basis
(€+222 million) to €2,144 million driven by (i) strong sales of Increasing Term products (€+163 million), (ii) the LTPA
(Long-Term Personal Accident) regular premium product (€+73 million) which benefited from a favorable sales
environment up until April 2006, and (iii) stronger Term Rider revenue (€+81 million) coming predominantly from sales of
the regular premium Term Rider 98 product. This was partially offset by lower Endowment, Whole Life and Variable Life
regular premiums (€–81 million) and lower Group Life revenue (€–15 million) as a result of lower in force (these products
are not actively promoted for new business).

– Health (23% of gross revenues excluding conversions): revenues increased by 1%, or 6% on a constant exchange rate basis
(€+63 million), to €1,039 million driven by good retention and strong sales in the last quarter.

 

United Kingdom gross revenues increased by €1,896 million on a current exchange rate basis or €1,882 million on a constant
exchange rate basis to €4,292 million.

– Investment & Savings (84% of gross revenues) increased by 117% to €3,626 million as:

•   Insurance Premium (71% of gross revenues) increased by 152% to €3,081 million due to the beneficial impact of the
reclassification of a bond product from an investment to an insurance contract following the launch of a new insurance
feature, and growth in the single premium pensions business following simplification of pensions legislation.

•   Margins on investment products (13% of gross revenues) increased by 21% to €545 million reflecting higher
management fees following net new money growth and investment growth.

– Life Insurance Premium (16% of gross revenues) decreased by 9% to €666 million primarily due to lower volumes of
creditor insurance single premium business.

 

Germany gross revenues increased by 3% to €3,681 million mainly due to higher Investment & Savings unit-linked and Health
premiums:

– Investment & Savings (25% of gross revenues) increased by 27% to €922 million, driven by unit-linked premiums, notably
stemming from the new product "TwinStar", which experienced a promising launch especially in proprietary channels. The
share of unit-linked premiums grew significantly to 41% (compared to 24% in 2005). Non-unit linked premiums decreased
by 2% to €541 million.

34


– Life (44% of gross revenues) decreased by 5% to €1,623 million mainly caused by a shift from endowment business to
investments and savings products and higher maturities on regular premiums compared to last year.

– Health (25% of gross revenues) increased by 3% to €929 million driven by the strong new business at the beginning of
2006 (notably following the launch of a new Medical Cost Insurance product) and improved lapse rates.

– Other (6% of gross revenues) decreased by 17% to €207 million due to further reduction of the share in medical council
business at the beginning of the year and lower consortium business.

 

Belgium gross revenues decreased by €222 million to €2,512 million due to the exceptionally high production level of December
2005 caused by the introduction of a new tax on premium in 2006 and by the end of the distribution agreement with "La Poste" on
February 28, 2005.

– Individual Life and Savings revenues (84% of revenues) decreased by 10% to €2,122 million. The decrease was driven by
the fall in both non unit-linked contracts (–8% to €1,567 million) and unit-linked contracts (–26% to €290 million), partly
offset by the growth in Traditional life (+4% to €264 million). Excluding "La Poste", Individual Life and Savings revenues
decreased by 7%.

– Group Life and Savings revenues (16% of revenues) increased by 1% to €390 million. Regular premiums were stable at
€343 million and single premiums grew by 5% to €47 million.

Mediterranean Region gross revenues decreased by 5% to €1,476 million. Investments and savings revenues decreased by 4% to
€1,302 million, mainly due to the lower amount of traditional contracts from institutional activity, as well as a lower unit-linked
production through partnerships with banks, partially offset by the launch of new products. Life premiums decreased by 13% to
€174 million, mainly as a result of the termination in May 2005 of an important bank-insurance agreement in Traditional Life.

Australia/New Zealand gross revenues were up 2% to €1,254 million on a comparable basis.

– Gross written premiums including fees from investment contracts without discretionary participating features were down
3% to €981 million. Group superannuation premiums decreased as there has been a continued trend away from traditional
investment and savings products towards mutual funds business. This was partially offset by higher individual life sales.

– Revenues from mutual fund and advice businesses increased by 28% to €273 million on a comparable basis reflecting the
growth in funds under management particularly in mezzanine funds, and improved investment market conditions.

Hong Kong gross revenues were up 25% to €1,041 million. On a comparable basis (at constant exchange rate and excluding the
contribution from MLC Hong Kong in the second half of 2006, since AXA APH completed its acquisition of MLC Hong Kong on
May 8, 2006), gross revenues increased by 15%, benefiting from (i) the increase in Individual Life regular premiums, notably due
to strong sales from agency brokers and AXA advisers, and (ii) strong growth in single premium unit-linked products.

Property & Casualty
Property & Casualty gross revenues were up 5% to €19,510 million net of intercompany eliminations (or €19,600 before
elimination of intercompany transactions), mainly driven by the United Kingdom & Ireland (+7% to €4,721 million), France
(+4% to €5,187 million), Mediterranean Region (+6% to €3,822 million) and Japan (+20% to €158 million).

Personal lines (62% of P&C premiums) were up 5% on a comparable basis, stemming from both Motor (+4%) and Non-Motor
(+5%).

35


Motor revenues grew 4%, mainly driven by Mediterranean Region up 9%, recording strong net inflows of 319,100 policies
following the launch of new products, United Kingdom & Ireland up 16%, due to updated pricing strategies and new business
growth, Germany up 4%, with net inflows of 157,000 policies, and France up 1% due to positive net inflows (+58,000 new
contracts). Japan (+20%) also contributed to motor revenue growth while in Canada, motor revenues were down 10% mainly
impacted by the 18 to 24 months policies sold in 2005 leading to less renewals in 2006.

Non-motor revenues increased by 5% mainly driven by new products launched in U.K. household, positive net inflows in
household and ongoing price increased in France, the introduction of natural catastrophe guarantees in Belgium, and growth in all
lines in Mediterranean Region.

Commercial lines (37% of P&C premiums) recorded a +4% growth on a comparable basis.

Motor revenues were up 3% on a comparable basis, mainly as positive evolution in France (+3%, overall positive inflows),
Mediterranean Region (+3%, growth of the existing fleets and the signature of new contracts), Belgium (+4%, as a result of
portfolio and tariff increases), and the United Kingdom & Ireland (+2%).

Non-motor revenues were up 4% on a comparable basis, mainly driven with France up 6% driven by Construction and Liability,
the United Kingdom including Ireland up 5%, driven by Property and Belgium up 7%, with positive growth in most lines of
business. Germany was down 2%, experiencing increased competition in Industrial Property, and Mediterranean Region was
down 2% following non renewals of some low profitability contracts.

International Insurance
International Insurance revenues were down 2% or up 7% on a comparable basis to €3,716 million net of intercompany
transactions, (or €3,811 million before elimination of intercompany transactions) attributable to both AXA Corporate Solutions
Assurance and AXA Assistance.

AXA Corporate Solutions Assurance revenues were up 5%, or 7% on a comparable basis, to €1,689 million, driven by portfolio
development in Property and Construction. Such development was achieved through selective new business activity focused on
risk managed accounts in targeted industry sectors and despite softening market conditions.

AXA Assistance revenues were up 13%, or 11% on a comparable basis, to €621 million net of intercompany transactions
reflecting increased business with car manufacturers (France), positive new inflows on travel insurance (mainly in Germany) and
home service providing (France, United Kingdom) as well as the gain of some major contracts in the U.S.

Other International activities revenues (including the transfer of reinsurance activities formerly led by AXA RE to "Other
International") were down 15% to €1,351 million net of intercompany transactions, mainly attributable to AXA RE (–16% to
€1,217 million) also due to a decrease in (i) current year gross attritional written premiums, and (ii) gross Major Losses
reinstatement premiums all years, mainly related to 2005 Major Losses (especially Katrina, Rita and Wilma hurricanes).

Asset management
Asset management revenues increased by 28% or 29% on a comparable basis to €4,406 million net of intercompany transactions
(or €4,781 million before elimination of intercompany transactions), driven by higher average AUM (+18.5% or 17% excluding
Framlington) and strong net inflows (€+17 billion to €73 billion).

36


AllianceBernstein revenues were up 20% or 25% on a comparable basis to €2,961 million net of intercompany transactions due
to higher investment advisory fees driven by 18% higher average AUM, as a result of net new business inflows and strong market
appreciation, and higher performance fees. AUM increased by €54 billion to €544 billion driven by €38 billion net inflows across
all client categories and €72 billion favorable market impact, partly offset by €57 billion unfavorable exchange rate impact.

AXA Investment Managers revenues, including those earned from AXA insurance companies eliminated in consolidation,
increased by €484 million, or +40% to €1,679 million. Excluding fees retroceded to distributors, AXA Framlington impact (€13
million in 2005 and €126 million in 2006) and exchange rate variation (€2 million), net revenues grew by 30% on a comparable
basis, driven by higher average AUM (+16% on a comparable basis), a positive client and product mix evolution, and higher
performance fees. AUM increased by €53 billion to €485 billion mainly driven by €35 billion positive net inflows, mainly from
third-party institutional and retail clients, and €20 billion favorable market impact, partly offset by €–4 billion foreign exchange
rate impact.

 

Banking
Revenues were down 11% to €377 million net of intercompany transactions, mainly attributable to AXA Bank Belgium (–13% to
€293 million, net of intercompany eliminations), as a result of the decrease of (i) realized capital gains, and (ii) mark-to-market
mainly due to derivatives (natural hedge on investment portfolio and credit spread portfolio) partly offset by an increase in loans
and the money market and (iii) net interest and fee income.

37


Consolidated net income

The tables below present AXA’s consolidated operating results and contribution to AXA’s consolidated net income by segment
for the periods indicated.

                    (In Euro million)  
    FY 2007   FY 2006   FY 2006   FY 2005   FY 2005  
        Restated (a)   Published   Restated (b)   Published  
Gross written premiums   86,116   71,299   72,099   65,196   65,995  
Fees and charges relating to investment contracts with no participating features   740   608   608   509   509  
Revenues from insurance activities   86,857   71,907   72,707   65,705   66,504  
Net revenues from banking activities   336   376   376   428   428  
Revenues from other activities   6,441   5,684   5,693   4,731   4,739  
Total revenues   93,633   77,966   78,775   70,865   71,671  
Change in unearned premiums net of unearned revenues and fees   (612)   (452)   (476)   (472)   (484)  
Net investment income (c)   17,470   14,184   14,461   13,681   13,951  
Net realized investment gains and losses (d)   5,264   4,225   4,260   3,506   3,557  
Change in fair value of financial instruments at fair value through profit & loss   4,084   14,338   14,550   15,715   16,008  
Change in financial instruments impairment (e)   (927)   (192)   (194)   (208)   (210)  
Net investment result excluding financing expenses   25,891   32,555   33,077   32,693   33,306  
Technical charges relating to insurance activities (f)   (89,590)   (83,877)   (84,836)   (80,614)   (81,791)  
Net result from outward reinsurance   (1,047)   (1,450)   (1,455)   (125)   (141)  
Bank operating expenses   (57)   (78)   (78)   (61)   (61)  
Acquisition costs (g)   (8,705)   (7,108)   (7,191)   (6,453)   (6,537)  
Amortization of the value of purchased business in force   (357)   (274)   (282)   (557)   (558)  
Administrative expenses   (10,462)   (8,705)   (8,788)   (8,501)   (8,596)  
Change in tangible assets impairment   2   18   18   (3)   (3)  
Change in goodwill impairment and other intangible assets impairment (h)   (148)   (12)   (12)   (70)   (70)  
Other income and expenses (i)   (397)   (518)   (511)   (78)   (81)  
Other operating income and expenses   (110,760)   (102,004)   (103,135)   (96,462)   (97,839)  
Income from operating activities before tax   8,152   8,066   8,241   6,623   6,653  
Income arising from investments in associates - Equity method   13   34   34   20   21  
Financing debts expenses (j)   (471)   (473)   (474)   (480)   (602)  
Operating income before tax   7,695   7,626   7,801   6,163   6,072  
Income tax   (1,783)   (1,991)   (2,043)   (1,454)   (1,411)  
Net operating result   5,911   5,635   5,758   4,709   4,661  
Result from discontinued operations net of tax   480   123   -   97   -  
Net consolidated income   6,391   5,758   5,758   4,806   4,661  
Split between :                      
Net income Group share   5,666   5,085   5,085   4,318   4,173  
Minority interests share in net consolidated income   725   673   673   488   488  

(a) In 2006, Restated means the restatement of the Netherlands' activities as discontinued operations.

(b) In 2005, Restated means: (i) the restatement of the Netherlands' activities as discontinued operations, (ii) following clarification of the IFRIC agenda committee following the IASB decision, AXA has reclassified TSDI instruments (perpetual subordinated debts) into shareholders' equity, and (iii) in line with the new accounting rule FRS 27, the reclassification in the United Kingdom of some With-Profit technical reserves to allow for all future terminal bonuses payable to With-Profit policyholders within the allocated policyholder reserves, previously held in the unallocated policyholder bonus reserve, without any impact on earnings.

(c) Net of investment management costs.

(d) Includes impairment releases on invested assets sold.

(e) Excludes impairment releases on invested assets sold.

(f) Includes changes in liabilities arising from insurance contracts and investment contracts (with or without participating features) where the financial risk is borne by policyholders for an amount of €7,476 million as a balancing entry to the change in fair value of financial instruments at fair value through profit and loss ( €15,158 million in 2006 and €13,589 million in 2005).

(g) Includes acquisition costs and change in deferred acquisition costs relating to insurance contracts and investment contracts with discretionary participating features as well as change in net rights to future management fees relating to investment contracts with no discretionary participating features.

(h) Includes change in goodwill impairment, negative goodwill, as well as amortization and impairment of intangible assets created during business combinations.

(i) Notably includes financial charges in relation to other debt instruments issued and bank overdrafts.

(j) Includes net balance of income and expenses related to derivatives on financing debt (however excludes change in fair value of these derivatives).

38


Net Income

                    (in Euro million)  
    Years ended December 31, 2005
 
    2007   2006   2005 Restated (a)   2005
Published
  Variation
2007 / 2006
 
Life & Savings   2,899   2,957   2,404   2,404   (58)  
Property & Casualty   2,218   1,977   1,737   1,737   241  
International Insurance   243     244   184   184   (1)    
TOTAL Insurance   5,360   5,178   4,326   4,326   182  
Asset Management   588   610   411   411   (22)  
Banking   6   10   60   60   (4)  
Holdings and other companies   (287)   (712)   (478)   (623)   425  
TOTAL   5,666   5,085   4,318   4,173   581  

(a) Restated means: following clarification of the IFRIC agenda committee following the IASB decision, AXA has reclassified TSDI instruments (perpetual subordinated debts) into shareholders' equity.

Analysis of investment result
The following table summarizes the net investment results for the periods indicated.

                                                    (in Euro million)  
    Net investment income   Net realized investment gains and losses    Change
in fair value of
financial instruments
at fair value
through profit and loss
  Change in financial instruments impairment   Net investment result
excluding

financing

expenses
 
(Years ended December 31)   2007   2006 Restated (a)    2005 Restated (b)   2007   2006 Restated(a)   2005 Restated (b)   2007   2006 Restated(a)     2005
Restated
(b)
  2007   2006 Restated (a)   2005 Restated (b)   2007   2006 Restated (a)   2005 Restated (b)  
Investment properties   787   789   796   1,160   698   282   (541)   384   375   (38)   38   (20)   1,369   1,909   1,433  
Fixed maturities   12,678   10,558   10,113   (245)   127   854   (1,483)   (1,331)   202   (390)   (78)   (23)   10,560   9,274   11,146  
Equities   2,028   1,534   1,420   5,056   3,269   2,584   (1,914)   1,031   1,493   (463)   (143)   (134)   4,708   5,691   5,363  
Non controlled investment funds   311   274   194   174   258   185   13   (13)   48   (38)   (5)   (10)   460   515   418  
Other assets held by consolidated investment funds designated as at fair value through profit & loss   206   208   141   20   (7)   (1)   66   16   93   -   -   -   292   217   234  
Loans   1,252   885   915   12   (2)   (115)   47   (166)   63   1   (2)   (19)   1,312   716   844  
Assets backing contracts where the financial risk is borne by policyholders   801   527   590   -   -   -   7,476   15,158   13,589   -   -   -   8,277   15,685   14,179  
Hedge accounting derivatives   -   -   -   -   -   -   (179)   (460)   (195)   -   -   -   (179)   (460)   (195)  
Other derivatives   (82)   (163)   (331)   16   140   (94)   978   (490)   (108)   -   -   -   911   (514)   (534)  
Investment management expenses   (914)   (898)   (577)   -   -   -   -   -   -   -   -   -   (914)   (898)   (577)  
Other   403   471   419   (930)   (258)   (190)   (379)   208   155   1   (2)   (3)   (905)   419   381  
NET INVESTMENT RESULT   17,470   14,184   13,681   5,264   4,225   3,506   4,084   14,338   15,715   (927)   (192)   (208)   25,891   32,555   32,693  

(a) In 2006, Restated means the restatement of the Netherlands' activities as discontinued operations.

(b) In 2005, Restated means: (i) the restatement of the Netherlands' activities as discontinued operations and (ii) following clarification of the IFRIC agenda committee following the IASB decision, AXA has reclassified TSDI instruments (deeply subordinated notes) into shareholders' equity.

39


Previously published information was as follows:

                                    (in Euro million)  
    Net investment income   Net realized investment gains
and losses
  Change in fair value of
financial instruments at fair
value through profit & loss
  Change in financial
instruments impairment
  Net investment result
excluding financing expenses
 
(Years ended December 31)   2006
Published
  2005
Published
  2006
Published
  2005
Published
  2006
Published
  2005
Published
  2006
Published
  2005
Published
  2006
Published
  2005
Published
 
Investment properties   789   796   698   289   384   375   38   (19)   1,909   1,441  
Fixed maturities   10,703   10,263   130   861   (1,329)   202   (78)   (23)   9,426   11,303  
Equities   1,550   1,436   3,300   2,620   1,031   1,492   (145)   (136)   5,736   5,412  
Non controlled investment funds   274   194   258   185   (13)   47   (5)   (10)   515   417  
Other assets held by consolidated investment
funds designated as at fair value through profit &
loss
  208   141   (7)   (1)   16   93   -   -   217   234  
Loans   1,005   1,018   (2)   (115)   (166)   63   (2)   (19)   836   947  
Assets backing contracts where the financial risk
is borne by policyholders
  527   590   -   -   15,370   13,978   -   -   15,897   14,568  
Hedge accounting derivatives   -   -   -   -   (460)   (195)   -   -   (460)   (195)  
Other derivatives   (162)   (337)   140   (94)   (492)   (101)   -   -   (514)   (532)  
Investment management expenses   (900)   (578)   -   -   -   -   -   -   (900)   (578)  
Other   467   428   (258)   (188)   208   53   (2)   (3)   415   291  
NET INVESTMENT RESULT   14,461   13,951   4,260   3,557   14,550   16,008   (194)   (210)   33,077   33,306  

EXCEPTIONAL OPERATIONS INCLUDED IN NET INCOME

2007 net income included €2 million related to exceptional operations with no significant items.

2006 net income included €189 million related to exceptional operations, mainly:

– a net dilution gain at AllianceBernstein (€+86 million) as a result of the issuance of AllianceBernstein units and the reversal

of a deferred tax liability from prior period;
– a net realized capital gain (€+66 million) in Other International activities resulting from the sale of AXA RE’s business to

Stone Point; and
– a gain in the United States Holdings (€+43 million) resulting from a favorable tax settlement on the sale of DLJ in 2000.

2005 net income included €–72 million from exceptional operations mainly stemming from a net realized loss in the United
States Holdings (€–69 million) as a result of the sale of Advest.

DISCONTINUED OPERATIONS

Following the June 4, 2007 announcement of the Dutch activities’ sale to SNS REAAL, the Group has classified The Netherlands
as a discontinued operation, with a retroactive application. The contribution of The Netherlands in 2007 amounted to €480 million
(of which €406 million gains on disposal and €74 million result up to the closing date), compared to €123 million in 2006 and €97
million in 2005.

40


YEAR ENDED DECEMBER 31, 2007 COMPARED TO YEAR ENDED DECEMBER 31, 2006

The net income for the year ended December 31, 2007 was €5,666 million. Excluding the contribution of Winterthur in 2007
(€392 million), net income in 2007 was up 4% or €+188 million compared to the year ended December 31, 2006 (or 7% and €335
million on a constant exchange rate basis), with Property & Casualty and Holdings being the major contributors to this
performance.

Net investment result amounted to €25,891 million in 2007. Excluding the contribution of Winterthur in 2007 (€3,280 million),
net investment result was down €-9,943 million or -31% compared to 2006. Net investment result was split as follows:

(i) Change in fair value of financial instruments at fair value through profit and loss amounted to €4,084 million. Excluding the
contribution of Winterthur in 2007 (€782 million), change in fair value of financial instruments at fair value through profit
and loss decreased by €11,036 million, resulting from all assets categories, including €-8,433 million attributable to changes
in fair value of assets backing contracts where the financial risk is borne by policyholders;

(ii) Financial instrument impairment charges amounted to €927 million. Excluding the contribution of Winterthur in 2007 (€257
million), impairment charges increased by €477 million, both from fixed maturities (€248 million) in the context of increasing
interest rates, and equities (€151 million);

 

These elements were partly offset by:

(iii) Net investment income amounted to €17,470 million. Excluding the contribution of Winterthur (€2,791 million), net
investment income increased by +3% (or €+494 million), including €+262 million stemming from assets backing contracts
where the financial risk is borne by policyholders and €256 million from derivative instruments;

(iv) Net realized gains amounted to €5,264 million in 2007. Excluding the contribution of Winterthur (€-37 million), realized
capital gains increased by +25% (or €+1,075 million), mainly in equities.

Other operating income and expenses amounted to €-110,760 million in 2007. Excluding the contribution of Winterthur in 2007
(€-15,806 million), other operating income and expense amounted to €-94,954 million in 2007, compared to €-102,004 million in
2006, mainly driven by a 9% decrease (or €+7,888 million) in technical charges from insurance activities notably in the Life &
Savings segment (€+8,881 million), partly offset by a €706 million increase in acquisition costs (+10%).

The income tax expense amounted to €-1,783 million in 2007. Excluding the contribution of Winterthur in 2007 (€-145 million),
the income tax expense decreased by €-353 million (or €-277 million on a constant exchange rate basis) notably benefiting from
the non-recurring 2006 increases in deferred tax provisions of €167 million in the United Kingdom Life & Savings segment, as
well as lower tax expenses in the Property & Casualty segment, notably in Germany and Belgium.

The contribution to AXA’s consolidated net income of each operating segment is set out below:

Life & Savings segment
Net income was €2,899 million in 2007. Excluding Winterthur contribution (€199 million), net income decreased by 9%, or by
5% (€-147 million) on a constant exchange rate basis, as higher incomes in the United Kingdom (€+61 million) and Germany
(€+47 million) were more than offset by decreases in net income in Belgium (€-91 million), France (€-67 million), and the United
States (€-79 million). Overall, the decrease in Life & Savings net income resulted from lower net investment result, not fully
offset by the growth in revenues.

41


Property & Casualty segment
Net income was €2,218 million in 2007. Excluding Winterthur contribution in 2007 (€200 million), net income increased by 2%,
or +3% (€+50 million) at constant exchange rates, driven in particular by Germany (€+89 million) and the Mediterranean Region
(€+147 million), partly offset by the United Kingdom and Ireland (€-143 million). Overall, Property & Casualty net income
increase resulted from higher volume of business, higher investment result driven by increased invested assets, and lower tax
charges notably in Germany and Belgium, partly offset by a deteriorated technical profitability (mainly due to major losses).

International Insurance segment
Net income was €243 million in 2007. Excluding the contribution of Winterthur in 2007 (€19 million), net income decreased by
€20 million as a €27 million decrease in the contribution of AXA RE run-off portfolio was partly offset by a €+7 million increase
in AXA Corporate Solutions Assurance.

Asset Management segment
Net income was €588 million in 2007. Excluding the contribution of Winterthur in 2007 (€14 million), net income decreased by -
6%, or was flat on a constant exchange rate basis, as higher earnings in 2007 were offset by the non recurrence of 2006 one-time
items of €86 million, mainly dilution gains at AllianceBernstein.

Banking segment
Net income was €6 million in 2007, a €4 million decrease compared to 2006, as the €14 million increase in net income of AXA
Banque (France) was more than offset by a €18 million decrease at AXA Bank Belgium notably driven by higher integration costs
related partly to early retirement pension plans.

Holdings and other companies
Net loss was €-287 million in 2007. Excluding the contribution of Winterthur in 2007 (€-40 million), net income was up €+465
million compared to 2006 (or €455 million on a constant exchange rate basis), notably driven by the €406 million gain on the sale
of the Netherlands’ activities in 2007.

YEAR ENDED DECEMBER 31, 2006 COMPARED TO YEAR ENDED DECEMBER 31, 2005

The net income for the full year 2006 was €5,085 million, up 18% or €767 million compared to full year 2005 (or 18% and €784
million on a constant exchange rate basis), with all major business lines contributing positively to this performance.

Net investment result was €32,555 million in 2006, down €-138 million (or -0%) compared to 2005, resulting from:

(i) a 4% increase in net investment income (€+503 million), notably attributable to the Life & Savings segment, mainly in Japan,
reflecting higher yields and increased asset bases, and significantly related to fixed maturities, and

(ii) a €719 million increase in net realized investment gains and losses, mainly in France Life & Savings,
more than offset by

(iii) €–1,377 million lower change in fair value of financial instruments at fair value through profit and loss resulting from all
assets categories (and despite a €+1,569 million increase in change in fair value of assets backing contracts where the
financial risk is borne by policyholders), and

(iv) a €16 million decrease in change in financial instruments’ impairment.

42


 

Other operating income and expenses were €–102,004 million in 2006, up €–5,542 million, driven by the increase in technical
charges related to insurance activities (€3,263 million increase), including:

(i) €4,331 million in the Life & Savings segment notably driven by activity growth, and

(ii) €511 million in the Property & Casualty segment, due mainly to activity growth, as combined ratios improved in 2006,
partly offset by

(iii) lower technical charges of €–1,525 million in the International Insurance segment, from higher major losses in 2005.

The increase in income tax expenses mainly resulted from higher pre-tax income.

The contribution to AXA’s consolidated net income of each operating segment is set out below:

Life & Savings segment
Net income improved by 23% to €2,957 million (or +24% on a constant exchange rate basis), driven by higher income in almost
all countries, in particular France (€+146 million), United States (€+147 million, including €+92 million favorable income tax
settlement), the United Kingdom (€+94 million), and Belgium (€+180 million mainly driven by higher realized capital gains).

Property & Casualty segment
Net income increased by €239 million (+14%) to €1,977 million (or +13% at constant exchange rates), attributable to almost all
countries, in particular Belgium (€+101 million), France (€+51 million), Mediterranean Region (€+53 million) and Canada (€+26
million). Overall, these increases were driven by improved technical profitability (even if partly offset by higher expenses),
combined with higher volumes of business and higher investment results driven by increased invested assets.

International Insurance segment
The contribution of this segment to AXA’s consolidated net income increased by €60 million (€+59 million on a constant
exchange rate basis) to €244 million, including notably the contribution of AXA RE run-off portfolio (driven by favorable claims
experience on 2005 and prior years) and a €66 million net gain on the sale of the AXA RE business.

Asset Management segment
The contribution of this segment to AXA’s consolidated net income rose by €199 million (or €203 million on a constant exchange
rate basis) to €610 million was mainly attributable to business growth and improved efficiency at both AXA Investment Managers
and AllianceBernstein, but also to a net €86 million dilution gain at AllianceBernstein.

Banking
The contribution of this segment to net income in 2006 decreased by €50 million to €10 million, primarily due to lower net
income at AXA Bank Belgium due to lower fixed income capital gains, a lower interest margin and the non recurrence of the
2005 reversal of a provision for risks related to loan activities in France following a favorable court decision.

Holdings and other Companies
The activities from the holdings and other companies resulted in a net loss of €–712 million in 2006 as compared to a net loss of
€–478 million in 2005, mainly resulting from a €–404 million change in the mark to market of interest rate derivative instruments
not considered as hedge accounting in AXA.

43


Consolidated Shareholders’ Equity

As of December 31, 2007, consolidated shareholders' equity totaled €45.6 billion. The movement in shareholders' equity since
January 1, 2005, is presented in the table below:

    Shareholders' Equity
(in Euro million)
  Number of ordinary outstanding shares (in million)  
At January 1, 2005 (a)   31,571   1,908  
Share Capital (b)   (84)   (37)  
Capital in excess of nominal value (c)   (966)   -  
Equity-share based compensation   57   -  
Treasury shares sold or bought in open market   (272)   -  
Change in equity component of compound financial instruments   -   -  
Deeply subordinated debt (including accrued interests) (a)   (231)   -  
Fair value recorded in shareholders' equity   2,418   -  
Impact of currency fluctuations (a)   1,361   -  
Cash dividend   (1,164)   -  
Other   (68)   -  
Net income for the period (a)   4,318   -  
Actuarial gains and losses on pension benefits   (415)   -  
At December 31, 2005 (a)   36,525   1,872  
Share Capital   507   221  
Capital in excess of nominal value   3,800   -  
Equity-share based compensation   106   -  
Treasury shares sold or bought in open market   137   -  
Change in equity component of compound financial instruments   -   -  
Deeply subordinated debt (including accrued interests)   3,539   -  
Fair value recorded in shareholders' equity   (375)   -  
Impact of currency fluctuations   (764)   -  
Cash dividend   (1,647)   -  
Other   60   -  
Net income for the period   5,085   -  
Actuarial gains and losses on pension benefits   252   -  
At December 31, 2006   47,226   2,093  
Share Capital   (74)   (32)  
Capital in excess of nominal value   (1,126)   -  
Equity-share based compensation   92   -  
Treasury shares sold or bought in open market   (195)   -  
Change in equity component of compound financial instruments   (109)   -  
Deeply subordinated debt (including accrued interests)   238   -  
Fair value recorded in shareholders' equity   (2,983)   -  
Impact of currency fluctuations   (1,392)   -  
Cash dividend   (2,218)   -  
Other   (93)   -  
Net income for the period   5,666   -  
Actuarial gains and losses on pension benefits   612   -  
At December 31, 2007   45,642   2,061  

(a) Following clarification of IFRIC agenda committee following IASB decision in 2006, AXA has reclassified TSDI instruments (perpetual
subordinated debts) into 2005 shareholders' equity. Details are provided in note 13 of the Consolidated Financial Statements included
in Item 18 of this Annual Report on Form 20-F.

(b) including €-88 million related to the AXA / Finaxa merger.

(c) including €-852 million related to the AXA / Finaxa merger.

44


Earnings per share ("EPS")

                (in Euro million except ordinary shares in million and net income per share in Euro)
    Years ended December 31
    2007   2006   2005 Restated (a)   2005
Publish
ed
  Var. 2007
versus 2006
    Basic   Fully
diluted
  Basic   Fully
diluted
  Basic   Fully
diluted
  Basic   Fully
diluted
  Basic   Fully
diluted
Weighted average number of shares (b)   2,042.7   2,060.8   1,947.8   2,031.7   1,917.5   1,991.0   1,880.9   1,954.4        
Net income group share   5,666   5,666   5,085   5,199   4,318   4,428   4,173   4,283        
Net income (Euro per Ordinary Share)   2.77   2.75   2.61   2.56   2.25   2.22   2.22   2.19   6.2%   7.4%

(a) In 2005, following clarification of IFRIC agenda committee following IASB decision, AXA reclassified TSDI instruments (perpetual subordinated debts) into shareholders' equity.

(b) Following the capital increase related to Winterthur acquisition, the weighted average number of shares has been restated (IAS 33 par. 26) in 2006 and 2005 by using an adjustment factor (application of an adjustment factor of 1.019456).

Return On Equity ("ROE")

            (in Euro million except variations in basis points)  
    Year ended
December 31, 2007
  Year ended
December 31, 2006
  Year ended
December
31,
2005
Restated (a)
  Year ended
December 31,
2005 Published
  Variation 2007
versus
2006
 
ROE   13.1%   13.2%   13.5%   14.3%   0.0%  
Net income group share   5,666   5,085   4,318   4,173      
Average shareholders' equity   43,096   38,644   32,060   29,269      

(a) In 2005, following clarification of IFRIC agenda committee following IASB decision taken in 2006, AXA reclassified TSDI instruments (perpetual subordinated debts) into shareholders' equity.

45


Life & Savings Segment

The tables below present the operating results of AXA’s Life & Savings segment, as well as the contribution to gross revenues
and net income attributable to the principal geographic operations within this segment for the periods indicated. The information
below is before elimination of intercompany transactions:

(In Euro million)
 
    FY 2007   FY 2006   FY 2006   FY 2005   FY 2005  
        Restated (a)   Published   Restated (b)   Published  
Gross written premiums   57,807   48,275   48,793   42,978   43,502  
Fees and charges relating to investment contracts with no participating features   740   608   608   509   509  
Revenues from insurance activities   58,548   48,883   49,401   43,487   44,011  
Net revenues from banking activities   -   -   -   -   -  
Revenues from other activities   1,332   1,076   1,084   1,107   1,115  
Total revenues   59,879   49,959   50,485   44,595   45,126  
Change in unearned premiums net of unearned revenues and fees   (278)   (229)   (249)   (165)   (179)  
Net investment income   14,898   12,125   12,372   11,762   12,003  
Net realized investment gains and losses   4,196   3,443   3,475   2,847   2,889  
Change in fair value of financial instruments at fair value through profit & loss   4,691   14,687   14,898   15,611   16,006  
Change in financial instruments impairment   (655)   (134)   (135)   (105)   (107)  
Net investment result excluding financing expenses   23,129   30,122   30,610   30,115   30,792  
Technical charges relating to insurance activities (c)   (70,595)   (68,999)   (69,815)   (64,668)   (65,684)  
Net result from outward reinsurance   32   (27)   (28)   (6)   (7)  
Bank operating expenses   -   -   -   -   -  
Acquisition costs   (3,744)   (3,095)   (3,103)   (2,826)   (2,855)  
Amortization of the value of purchased business in force   (357)   (274)   (282)   (557)   (558)  
Administrative expenses   (3,514)   (2,822)   (2,871)   (2,967)   (3,017)  
Change in tangible assets impairment   (0)   7   7   (4)   (4)  
Change in goodwill impairment and other intangible assets impairment   (58)   -   -   (70)   (70)  
Other income and expenses   (231)   (166)   (167)   (16)   (17)  
Other operating income and expenses   (78,465)   (75,375)   (76,259)   (71,115)   (72,214)  
Income from operating activities before tax   4,265   4,477   4,587   3,430   3,524  
Income arising from investments in associates - Equity method   6   12   12   10   10  
Financing debts expenses   (91)   (106)   (106)   (119)   (119)  
Operating income before tax   4,180   4,383   4,493   3,322   3,416  
Income tax   (994)   (1,285)   (1,319)   (820)   (843)  
Net operating result   3,186   3,098   3,175   2,502   2,573  
Result from discontinued operations net of tax   -   77   -   72   -  
Net consolidated income   3,186   3,175   3,175   2,573   2,573  
Split between :                      
Net income Group share   2,899   2,957   2,957   2,404   2,404  
Minority interests share in net consolidated income   287   218   218   169   169  

(a) In 2006, Restated means the restatement of The Netherlands' activities as discontinued operations.

(b) In 2005, Restated means: (i) the restatement of The Netherlands' activities as discontinued operations and (ii) in line with the new accounting rule FRS27, the reclassification in the United Kingdom of some With-Profit technical reserves to allow for all future terminal bonuses payable to With-Profit policyholders within the allocated policyholder reserves, previously held in the unallocated policyholder bonus reserve, without any impact on earnings.

(c) Includes changes in liabilities arising from insurance contracts and investment contracts (with or without participating features) where the financial risk is borne by policyholders for an amount of €7,476 million as a balancing entry to the change in fair value of financial instruments at fair value through profit and loss ( €15,158 million in 2006 and €13,589 million in 2005).

46


CONSOLIDATED GROSS REVENUES

                (in Euro million)  
    FY 2007   FY 2006
Restated (b)
  FY 2006
Published
  FY 2005
Restated (b)
  FY 2005
Published
 
France   15,052   14,802   14,802   13,237   13,237  
United States   16,244   15,390   15,390   13,940   13,940  
United Kingdom   4,628   4,292   4,292   2,395   2,395  
Japan   5,116   5,027   5,027   4,735   4,735  
Germany   6,201   3,681   3,681   3,585   3,585  
Switzerland   4,133   141   141   116   116  
Belgium   3,075   2,512   2,512   2,734   2,734  
Mediterranean Region (c)   1,924   1,476   1,476   1,562   1,562  
Other countries   3,507   2,637   3,164   2,290   2,822  
TOTAL (a)   59,879   49,959   50,485   44,595   45,126  
Intercompany transactions   (35)   (7)   (7)   (10)   (10)  
Contribution to consolidated gross revenues   59,845   49,952   50,479   44,585   45,116  

(a) Before elimination of intercompany transactions.

(b) Restated means the restatement of The Netherlands' activities as discontinued operations.

(c) Mediterranean Region includes Italy, Spain, Portugal, Greece, Turkey and Morocco.

NET INCOME

        (in Euro million)  
    Years ended December 31,   Variation  
    2007   2006   2005   2007 / 2006  
France   709   776   630   (67)  
United States   863   1,020   872   (157)  
United Kingdom   216   138   44   78  
Japan   219   256   392   (38)  
Germany   179   81   36   97  
Belgium   191   310   131   (120)  
Switzerland   135   7   4   128  
Mediterranean Region (a)   84   63   63   21  
Other Countries   304   304   232   (1)  
Contribution to net income   2,899   2,957   2,404   (58)  

(a) Mediterranean Region includes Italy, Spain, Portugal, Greece, Turkey and Morocco

In 2007, the Life & Savings segment accounted for 64% of AXA’s consolidated gross revenues after elimination of intercompany
transactions (64% in 2006 and 63% in 2005). The Life & Savings segment was the primary contributor to AXA’s 2007 (51%),
2006 (58%) and 2005 (56%) consolidated net income.

47


Analysis of investment results

The following table summarizes the net investment results of AXA’s Life & Savings operations by type of invested financial
assets for the periods indicated before elimination of intercompany transactions.

 

 

 

 

 

 

 

 

 

 

 

 

(in Euro million)

Net investment income   Net realized
investment gains
and losses
  Change in fair
value of financial
instruments at fair
value through
profit & loss
  Change in financial
instruments impairment
  Net investment
result excluding
financing expenses

(Years ended December 31)

2007   

2006
Restated (a)

  

2005
Restated (a)

   2007   

2006
Restated (a)

  

2005
Restated (a)

   2007   

2006
Restated (a)

  

2005
Restated (a)

   2007   

2006
Restated (a)

  

2005
Restated (a)

   2007   

2006
Restated (a)

  

2005
Restated (a)

Investment properties

634

 

680

 

725

 

1,037

 

677

 

269

 

(542)

 

356

 

359

 

(30)

 

34

 

8

 

1,100

 

1,747

 

1,361

Fixed maturities

10,669

 

8,958

 

8,632

 

(151)

 

262

 

649

 

(1,198)

 

(1,293)

 

169

 

(339)

 

(73)

 

(23)

 

8,981

 

7,854

 

9,428

Equities

1,533

 

1,185

 

1,111

 

4,146

 

2,518

 

2,088

 

(2,011)

 

923

 

1,371

 

(278)

 

(86)

 

(68)

 

3,390

 

4,540

 

4,503

Non controlled investment funds

260

 

230

 

175

 

122

 

124

 

89

 

17

 

(14)

 

35

 

(4)

 

(2)

 

(4)

 

394

 

338

 

295

Other assets held by consolidated investment funds designated as at fair value through profit & loss

189

 

198

 

138

 

18

 

(7)

 

-

 

2

 

18

 

83

 

-

 

-

 

-

 

209

 

208

 

221

Loans

1,358

 

1,033

 

1,044

 

4

 

(4)

 

6

 

51

 

(166)

 

75

 

2

 

(6)

 

(19)

 

1,414

 

857

 

1,107

Assets backing contracts where the financial risk is borne by policyholders

817

 

527

 

590

 

-

 

-

 

-

 

7,468

 

15,158

 

13,589

 

-

 

-

 

-

 

8,284

 

15,685

 

14,179

Hedge accounting derivatives

-

 

-

 

-

 

-

 

-

 

-

 

251

 

(97)

 

(122)

 

-

 

-

 

-

 

251

 

(97)

 

(122)

Other derivatives

(112)

 

(213)

 

(400)

 

(14)

 

149

 

(98)

 

915

 

(402)

 

(31)

 

-

 

-

 

-

 

790

 

(466)

 

(529)

Investment management expenses

(900)

 

(884)

 

(740)

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(900)

 

(884)

 

(740)

Other

451

 

411

 

487

 

(967)

 

(275)

 

(156)

 

(263)

 

203

 

82

 

(6)

 

(0)

 

0

 

(785)

 

339

 

413

NET INVESTMENT RESULT

14,898

 

12,125

 

11,762

 

4,196

 

3,443

 

2,847

 

4,691

 

14,687

 

15,611

 

(655)

 

(134)

 

(105)

 

23,129

 

30,122

 

30,115

(a) Restated means the restatement of the Netherlands' activities as discontinued operations.

Previously published information was as follows:

                                    (in Euro million)  
    Net investment income   Net realized investment gains
and losses
  Change in fair
value of financial
instruments at fair
value through
profit & loss
  Change in financial
instruments impairment
  Net investment result
excluding financing expenses
 
(Years ended December 31)   2006
Published
  2005
Published
  2006
Published
  2005
Published
  2006
Published
  2005
Published
  2006
Published
  2005
Published
  2006
Published
  2005
Published
 
Investment properties   680   726   677   269   356   359   34   8   1,747   1,362  
Fixed maturities   9,072   8,750   264   653   (1,291)   169   (73)   (23)   7,972   9,549  
Equities   1,200   1,126   2,549   2,124   923   1,371   (88)   (70)   4,584   4,551  
Non controlled investment funds   230   175   124   89   (14)   34   (2)   (4)   338   295  
Other assets held by consolidated investment funds designated as at fair value through profit & loss   198   138   (7)   -   18   83   -   -   208   221  
Loans   1,152   1,144   (4)   7   (166)   75   (6)   (19)   976   1,207  
Assets backing contracts where the financial risk is borne by policyholders   527   590   -   -   15,370   13,978   -   -   15,897   14,568  
Hedge accounting derivatives   -   -   -   -   (97)   (122)   -   -   (97)   (122)  
Other derivatives   (212)   (406)   149   (98)   (403)   (24)   -   -   (467)   (528)  
Investment management expenses   (891)   (746)   -   -   -   -   -   -   (891)   (746)  
Other   416   506   (275)   (154)   203   82   (0)   0   343   435  
NET INVESTMENT RESULT   12,372   12,003   3,475   2,889   14,898   16,006   (135)   (107)   30,610   30,792  

48


The year to year commentaries below are based on operating results of the segment before elimination of intercompany
transactions (for further information refer to Note 3 "Segmental information" to the consolidated financial statements included in
Item 18 of this Annual Report on form 20-F).

YEAR ENDED DECEMBER 31, 2007 COMPARED TO YEAR ENDED DECEMBER 31, 2006

Gross revenues were up 20%, or up 5% on a comparable basis, to €59,845 million net of intercompany transactions, (or €59,879
million before the elimination of intercompany transactions), mainly driven by the United States, Belgium, and France. For a
detailed analysis of Life & Savings gross revenues, refer to section "Consolidated Gross Revenues".

The net investment result excluding financing expenses was €23,129 million in 2007. Excluding the contribution of Winterthur
(€2,961 million), net investment result decreased by €9,953 million compared to full year 2006 (or €9,260 million on a constant
exchange rate basis). This decrease was explained as follows:

a)  Net investment income amounted to €14,898 million in 2007. Excluding the contribution of Winterthur in 2007 (€2,415
million), net investment income increased by €357 million resulting mainly from:

–  a €422 million increase in Australia-New Zealand, mainly attributable to net investment income from assets backing
contracts where the financial risk is borne by policyholders, on the back of higher dividend income, as a result of better
corporate earnings, and higher interest income;

– a €161 million increase in France, mainly driven by a higher asset base in fixed maturities.
Partly offset by:

– a €-182 million decrease in Japan, as (i) higher returns from alternative investments were more than offset by (ii)
unfavorable foreign exchange impacts (€-92 million), and (iii) lower income from fixed maturities reflecting the impact
of the 2006 portfolio restructuring, moving from foreign bonds with Interest Rate Swaps to Japanese Government Bonds.
However, this restructuring triggered at the same time a significant reduction of the hedge cost (decreasing by
€-147 million) reflected in realized capital gains through foreign exchange and derivative impacts and change in fair value.

b)  Net realized investment gains amounted to €4,196 million in 2007. Excluding the contribution of Winterthur in 2007 (€-24
million), net realized gains increased by €+776 million (or €+702 million on a constant exchange rate basis), mainly as a result of:

– a €1,264 million increase in the United Kingdom, or a €1,275 million increase on a constant exchange rate basis, to €2,662
million, mainly due to portfolio changes arising from a fund rebalancing exercise; and

– a €-739 million decrease in Japan, resulting from (i) proceeds of underlying assets almost equal to last year (€+1 million),
(ii) reduction of the hedge cost mentioned above (€+133 million), (iii) other derivatives (€-137 million), (iv) other negative
foreign exchange impact resulting mainly from the close out of currency forwards and disposal of assets in Euro (€-841
million), and (v) pure impact of foreign exchange rate (€+105 million).

c) Change in fair value of financial instruments at fair value though profit and loss amounted to €4,691 million in 2007. Excluding
the contribution of Winterthur in 2007 (€+789 million), the change in fair value of financial instruments at fair value through
profit and loss decreased by €-10,785 million, (or €-10,295 million on a constant exchange rate basis), to €3,902 million,
mainly driven by:

–  a €896 million lower change in fair value of real estate assets, attributable to the United Kingdom (€-676 million) and
Australia-New Zealand (€-159 million);

– a €3,015 million decrease in change in fair value of equities, mainly attributable to the United Kingdom (€2,666 million) due

to unfavorable changes in equity markets late in 2007, which coincided with the rebalancing of the portfolio in the United
Kingdom;

49


–  a €1,262 million increase in changes in fair value of other derivative instruments, in particular in Japan (€1,233 million)
mainly driven by positive impact due to close out of currency Euro forwards related to Euro bonds (therefore, foreign
exchange impacts, net of related derivatives impacts decreased by €-4 million);

–  a €8,433 million decrease in change in fair value from assets backing contracts where the financial risk is borne by
policyholders, mainly in France (€-2,122 million), the United States (€-3,637 million), the United Kingdom (€-1,669
million) and Australia-New Zealand (€-914 million), as the result of less favorable European and U.S. equity & fixed
maturity markets in 2007 compared to 2006.

d) Net impairment charges amounted to €655 million in 2007. Excluding the contribution of Winterthur in 2007 (€219 million),
impairment charges increased by €302 million, including notably:

–  a €68 million increase in impairment charges to €-87 million in Germany, especially due to fixed maturities available for
sale.

– €141 million higher impairment charges in France, including €92 million on fixed maturities and €47 million on real estate
assets; and

– a €59 million increase in the United States, mostly on fixed maturities.

 

Technical charges relating to insurance activities were €70,595 million in 2007. Excluding Winterthur contribution in 2007
(€10,477 million), technical charges relating to insurance activities decreased by €8,881 million or -13% (or €-6,545 million on a
constant exchange rate basis or -9%). The larger contributors to this decrease on a constant exchange rate basis were:

– France (€-2,215 million) mainly due to (i) the decrease in unit linked reserves as a consequence of the change in fair value
of assets backing contracts where the financial risk is borne by policyholders by €-2,201 million and (ii) the reclassification
of technical items in commissions for €-97 million.

–  United Kingdom (€-2,968 million), as decreased policyholder reserve movements by €-3,557 million, primarily due to
reduced investment growth on policyholder investments compared to 2006, were partly offset by increased policy benefit
payments by €589 million, mainly due to increased surrenders in With Profit and Group Managed Funds.

– United States, were technical charges relating to insurance activities decreased by €924 million,

– Australia-New Zealand, with a €428 million decrease (or €406 million on a current exchange rate basis), mainly due to a
decrease in unit-linked technical reserves driven by lower changes in fair value, partially offset by an increase in surrenders
driven by changes in superannuation legislation in Australia.

–  Germany, with a decrease of €-161 million driven by lower premiums in Life traditional business as well as lower
policyholder participation.

 

These decreases were partly reduced by:

–  Belgium where technical charges relating to insurance activities increased by €+409 million (+13%) mainly due to the
increase in premiums and the rise in interests credited to policyholders.

 

Acquisition costs (DAC and equivalent capitalization, net of amortization, and insurance acquisition expenses) amounted to €-
3,744 million in 2007. Excluding the contribution of Winterthur in 2007 (€-204 million), acquisition costs increased by €446
million, or +14%, resulting from:

–  €526 million (or €736 million at constant exchange rates) higher insurance acquisition expenses, notably in the United
States (€+195 million), France (€+131 million), the United Kingdom (€+100 million), and Germany (€+73 million);

– a €142 million higher DAC amortization charge, including a €70 million increase in Germany;
partly offset by

–  a €279 million increase in DAC capitalization, in particular in Germany (€+72 million) and the United States (€+144
million).

50


Amortization of value of purchased life business inforce and other intangible assets amounted to €-357 million in 2007.
Excluding the contribution of Winterthur in 2007 (€-100 million), the amortization charge decreased by €17 million, stemming
from several countries, partly offset by a €41 million increase in the United Kingdom (to €52 million in 2007), notably resulting
from higher lapses on Pension Business.

Administrative expenses were €-3,514 million in 2007. Excluding the contribution of Winterthur in 2007 (€-526 million),
administrative expenses increase by €166 million compared to 2006 or +6% (or €+254 million or 9% on a constant exchange rate
basis), notably including €+82 million in the United Kingdom, mainly due to the inclusion of Thinc Group (€48 million), and
€+69 million in Australia-New Zealand mainly driven by higher commissions associated with higher revenues.

Changes in goodwill impairment and other intangible assets impairment were €58 million (nil in 2006), and included a €24
million amortization charge of intangible assets resulting from the acquisition of Winterthur, and a €29 million charge in the
United States, resulting from a €22 million impairment of intangibles related to the wind down of USFL and €7 million in
restructuring charges associated with the transfer of Enterprise retail mutual funds to Goldman Sachs.

Other expenses amounted to €-231 million in 2007. Excluding the contribution of Winterthur in 2007 (€-59 million), other
expenses increased by €7 million over the year, or €14 million on a constant exchange rate basis. This increase notably resulted
from a €52 million increase in other charges in Hong Kong mainly due to the increase in interest expense on operating debt and
the non recurrence of a one-off gain on the sale and leaseback of the AXA Centre property in 2006, partly offset by decreases in
other countries including the United States and Germany.

Income tax charge was €-994 million in 2007. Excluding the contribution of Winterthur in 2007 (€-54 million), income tax
charge decreased by €345 million mainly driven by a €372 million decrease in the United Kingdom, due to policyholder tax
decrease of €204 million as a result of lower investment gains, and to the non-recurring 2006 increases in deferred tax provisions
of €167 million, which was primarily a result of a reassessment of the likelihood of a future distribution from the attributed
Inherited Estate.

Result from discontinued operations (net of tax) was, in 2006, the net income from the Dutch Life & Savings operations that
have been reclassified as "discontinued operations" following the sale closed on September 5, 2007. Their contribution in 2007
was accounted for in the "Holdings and other companies" segment.

Net income amounted to €2,899 million in 2007. Excluding the contribution of Winterthur in 2007 (€+199 million), and on a
constant exchange rate basis, net income decreased by €147 million. This decrease resulted from reduced net investment result,
notably reflecting lower changes in fair value of invested assets despite increased net investment income and higher capital gains,
not totally offset by activity growth.

YEAR ENDED DECEMBER 31, 2006 COMPARED TO YEAR ENDED DECEMBER 31, 2005

Gross revenues (before elimination of intercompany transactions) increased by €5,364 million to €49,959 million. Net of
elimination of intercompany transactions, Life & Savings gross revenues increased by €5,367 million to €49,952 million, or
€+5,755 million on a constant exchange rate basis.
For a detailed analysis of Life & Savings gross revenues, refer to section "Consolidated Gross Revenues".

51


The net investment result excluding financing expenses was stable with an increase by €6 million to €30,122 million in 2006 as
compared to 2005. This was attributable to the following:

a) A €363 million increase in net investment income to €12,125 million, resulting mainly from:

–  a €+531 million increase in Japan, resulting from (i) higher income related to derivative instruments (€+370 million),
primarily attributable to the fact that the hedge cost related to forex hedging (€–444 million) was classified as capital gain or
loss from 2006, and (ii) higher return on the alternative/hedge funds (€+100 million); and

–  €+80 million in Germany driven by higher level of income from fixed income securities, due to higher total assets, the
increase in the portion of corporate bonds and the extended duration;
Partly offset by:

– €–277 million in the United States primarily due to:

• the decline in fair values of derivative instruments, including those related to the economic hedging programs implemented
to mitigate certain risks associated with GMDB/GMIB features of certain variable annuity contracts, and interest rate swap
floor contracts,

• partially offset by an increase in cash and short-term investment income, due to higher yields and higher income on other
equity investments.

b)  A €596 million increase in net realized investment gains and losses, to €3,443 million, resulting from increases in most
countries, of which €+639 million was generated in France mainly on equities, €+187 million in Belgium, €+73 million in the
United States, €75 million in the United Kingdom, and €+74 million in Germany, partly offset by a €–668 million decrease in
Japan, including hedge cost related to foreign exchange hedging (classified as capital gains from 2006), and lower net capital
gains as a consequence of the significant 2005 net capital gains driven by the shift from U.S.$/Euro bonds to Japanese
Government bonds.

c)  A €–924 million reduction in the change in fair value of financial instruments through profit and loss to €14,687 million,
resulting from:

– a €–1,462 million lower change in fair value of fixed maturities, attributable to the increase in interest rates in 2006, since
most of the portfolio is made of fixed income assets. This decrease was attributable in particular to the United Kingdom
(€–1,343 million);

– a €–448 million decrease in the change in fair value of equity securities (including the United Kingdom €–223 million and
Japan €–160 million), since equity markets increased to a lesser extent in 2006 than in 2005.

– a €–346 million decrease in change in fair value of derivative instruments (including France €–233 million).

These changes were partly offset by a favorable increase in the change in fair value of assets backing contracts with financial
risk borne by the policyholders (€+1,569 million to €15,158 million), resulting primarily from a strong increase in the United
States (€+4,056 million), partly offset by lower changes in fair value in France (€–889 million), the United Kingdom (€–1,661
million), and Germany (€–68 million).

d) A €–29 million increase in impairment of financial instruments.

Technical charges relating to insurance activities increased by €4,331 million (+7%) to €68,999 million, principally due to the
increase in total revenues and increased charges related to change in technical liabilities backing contracts with financial risk
borne by the policyholders, reflecting the higher change in fair value of the corresponding assets.

Most important contributors to the increase in technical charges were : (i) the United States (€+5,285 million to €22,320 million),
due primarily to the increase in the change in fair value of assets with financial risk borne by the policyholders, lower
GMDB/GMIB benefits and reserves due to the improvements in the equity markets, and lower benefits in the reinsurance assumed
and individual health product lines, and (ii) France (€+696 million to €19,382 million due to the increase in total revenues and to
the increase in unit-linked reserves as a consequence of the revaluation of unit-linked assets).

52


This increase was partly offset by the United Kingdom, (€–1,498 million to €–9,884 million), the reduction being primarily due to
(i) reductions in With-Profits reserves of €3,361 million following increased bond yields and high levels of surrenders during
2006, partly offset by (ii) increased unit-linked reserves (€+769 million) following net new money growth and investment return,
and (iii) increased policy benefit payments (€1,195 million) following increased surrenders during 2006 in the wake of Pensions
Simplification.

In addition, in Australia / New Zealand, technical charges decreased by €351 million to €1,596 million, mainly due to the
reclassification of policyholder tax to income tax expenses.

Acquisition costs (DAC and equivalent capitalization, net of amortization, and insurance acquisition expenses) increased by €268
million to €3,095 million (+9%). This resulted from the combination of (i) a €326 million higher DAC amortization (including
€+108 million in Germany which was mainly attributable to a positive one-off effect in 2005 resulting from an enhanced scope of
de-zillmerized products in Life, and €+193 million in the United States reflecting reactivity to higher margins in products which
are DAC-reactive and favorable DAC unlocking for expected higher emerging margins on annuity and variable and interest
sensitive life products), (ii) a €168 million increase in acquisition costs, and (iii) a €75 million higher amortization of net rights to
future management fees (also called Deferred Origination Costs or "DOC"), partly offset by higher DAC capitalization (€164
million) and interests capitalized (€146 million).

Amortization of value of purchased life business inforce and other intangible assets decreased by €–283 million to €274
million (–51%), mainly because of the 2005 non-recurring charge in Japan related to a change in future investment assumptions.

Administrative expenses were €2,822 million in 2006, down by 5% or €–145 million as compared to 2005, including a €–290
million decrease in the United States following the sale of Advest in November 2005.

Other expenses increased by €150 million in 2006, notably because 2005 expenses were reduced by a €151 million net realized
gain on the sale of the headquarter property of AXA Japan during the second half of the year.

Income tax expenses increased by €465 million to €1,285 million. This was mostly attributable to a €540 million increase in tax
charge in Japan, whereas in 2005, income tax expenses reflected the re-estimation of deferred taxes recorded during the prior
years. In addition, in Australia / New Zealand, income tax expenses increased by €251 million to €234 million, reflecting the
reclassification of policyholder tax and dividends due to participating policyholders from the technical charges to income tax
expense. These increases were partly offset by lower 2006 tax charges (i) in France (€–107 million) (a) as some dividends on
equities were taxed at a reduced rate while previously taxed at the full rate, following a portfolio reallocation and (b) due to the
split between short-term and long-term taxable income, and (ii) in the United Kingdom (€–184 million), as policyholder tax
decreased by €–357 million as a result of lower investment gains, partly offset by non-recurring increases in deferred tax
provisions of €167 million, primarily as a result of a reassessment of the likelihood of a future distribution from the attributed
Inherited Estate. In addition, 2006 tax charges in the United States were reduced by a €92 million tax settlement.

Result from discontinued operations (net of tax) for 2006 and 2005 included the net income from the Dutch Life & Savings
insurance operations, an increase by €5 million to €77 million compared with 2006.

Net income increased by €552 million (or €576 million at a constant exchange rate) to €2,957 million. This improvement was
mainly attributable to higher revenues due to activity growth and market appreciation, in spite of reduced net investment result
(excluding any change in fair value of assets with financial risk carried by policyholders) notably reflecting lower changes in fair
value of invested assets despite increased net investment income and higher capital gains.

53


Property & Casualty Segment

The tables below present the operating results of AXA’s Property & Casualty segment, as well as the contribution to gross
revenues and net income attributable to the principal geographic operations within this segment for the periods indicated. This
information below is before elimination of intercompany transactions.

                    (In Euro million)  
    FY 2007   FY 2006
Restated (a)
  FY 2006
Published
  FY 2005
Restated (a)
  FY 2005
Published
 
Gross written premiums   25,101   19,548   19,830   18,638   18,913  
Fees and charges relating to investment contracts with no participating
features
  -   -   -   -   -  
Revenues from insurance activities   25,101   19,548   19,830   18,638   18,913  
Net revenues from banking activities   -   -   -   -   -  
Revenues from other activities   79   52   52   43   43  
Total revenues   25,180   19,600   19,882   18,681   18,956  
Change in unearned premiums net of unearned revenues and fees   (362)   (139)   (142)   (272)   (269)  
Net investment income   2,059   1,562   1,592   1,414   1,443  
Net realized investment gains and losses   953   594   596   490   499  
Change in fair value of financial instruments at fair value through profit &
loss
  (75)   50   52   82   82  
Change in financial instruments impairment   (251)   (47)   (47)   (84)   (84)  
Net investment result excluding financing expenses   2,687   2,159   2,192   1,902   1,940  
Technical charges relating to insurance activities   (16,723)   (12,697)   (12,841)   (12,187)   (12,347)  
Net result from outward reinsurance   (599)   (629)   (632)   (565)   (581)  
Bank operating expenses   -   -   -   -   -  
Acquisition costs   (4,652)   (3,712)   (3,787)   (3,327)   (3,382)  
Amortization of the value of purchased business in force   -   -   -   -   -  
Administrative expenses   (2,452)   (1,826)   (1,860)   (1,915)   (1,961)  
Change in tangible assets impairment   3   11   11   (1)   (1)  
Change in goodwill impairment and other intangible assets impairment   (89)   -   -   -   -  
Other income and expenses   (24)   (18)   (10)   14   12  
Other operating income and expenses   (24,536)   (18,872)   (19,119)   (17,981)   (18,259)  
Income from operating activities before tax   2,969   2,748   2,812   2,330   2,368  
Income arising from investments in associates - Equity method   5   22   22   3   3  
Financing debts expenses   (13)   (8)   (8)   (11)   (11)  
Operating income before tax   2,961   2,762   2,826   2,323   2,361  
Income tax   (693)   (769)   (788)   (553)   (566)  
Net operating result   2,267   1,993   2,038   1,770   1,795  
Result from discontinued operations net of tax   -   45   -   25   -  
Net consolidated income   2,267   2,038   2,038   1,795   1,795  
Split between :
Net income Group share
  2,218   1,977   1,977   1,737   1,737  
Minority interests share in net consolidated income   49   61   61   58   58  

(a) Restated means the restatement of the Netherlands' activities as discontinued operations.

54


CONSOLIDATED GROSS REVENUES

                    (in Euro million)  
    FY 2007   FY 2006   FY 2006   FY 2005   FY 2005  
        Restated (b)   Published   Restated (b)   Published  
France   5,377   5,219   5,219   5,096   5,096  
United Kingdom & Ireland   5,111   4,742   4,742   4,413   4,413  
Germany   3,531   2,759   2,759   2,798   2,798  
Belgium   2,130   1,520   1,520   1,462   1,462  
Mediterranean Region (c)   5,298   3,831   3,831   3,612   3,612  
Switzerland   1,981   95   95   90   90  
Other countries   1,752   1,435   1,717   1,210   1,485  
TOTAL (a)   25,180   19,600   19,882   18,681   18,956  
Intercompany transactions   (164)   (89)   (89)   (81)   (81)  
Contribution to consolidated gross revenues   25,016   19,510   19,793   18,600   18,874  

(a) Before elimination of intercompany transactions.

(b) Restated means the restatement of The Netherlands' activities as discontinued operations.

(c) Mediterranean Region includes Italy, Spain, Portugal, Greece, Turkey and Morocco.

AXA GROUP-RATIOS

                (in %)  
    Years ended December 31,   Variation  
    2007   2006 restated (a)   2006 published   2007 / 2006  
Current accident year loss ratio (net)   75.1%   71.9%   71.8%   3.1%  
All accident year loss ratio (net)   69.7%   68.5%   68.3%   1.2%  
Expense ratio   27.9%   28.5%   28.6%   -0.6%  
Combined ratio   97.6%   96.9%   96.9%   0.7%  

(a) Restated means the restatement of The Netherlands activities as discontinued operations.

NET INCOME

            (in Euro million)  
    Years ended December 31,   Variation  
    2007   2006   2005   2007 / 2006  
France   553   515   464   38  
Germany   410   282   295   128  
Belgium   272   283   183   (11)  
United Kingdom & Ireland   307   451   464   (144)  
Switzerland   84   9   3   75  
Mediterranean Region (a)   428   230   177   198  
Other Countries   164   206   152   (41)  
Contribution to net income   2,218   1,977   1,737   241  

(a) Mediterranean Region includes Italy, Spain, Portugal, Greece, Turkey and Morocco.

In 2007, the Property & Casualty segment accounted for 27% of AXA’s consolidated gross revenues after elimination of
intercompany transactions (2006: 25% and 2005: 26%). The Property & Casualty segment contributed significantly (39%) to
AXA’s 2007 consolidated net income (2006: 39% and 2005: 40%). This segment has shown continuous operational
improvements over the past three years.

55


Analysis of investment results

The following table summarizes the net investment results of the Property & Casualty operations by type of invested assets for the
periods indicated, before elimination of intercompany transactions.

                                                        (in Euro million)  
    Net investment income   Net realized
investment gains
and losses
  Change in fair
value of financial
instruments at fair
value through
profit & loss
  Change in financial
instruments impairment
  Net investment
result excluding
financing expenses
 
(Years ended December 31)   2007   2006 Restated (a)   2005 Restated (a)   2007   2006
Restated
(a)
  2005 Restated (a)   2007   2006 Restated (a)   2005 Restated (a)   2007   2006 Restated (a)   2005 Restated (a)   2007   2006 Restated (a)   2005 Restated (a)  
Investment properties   104   94   68   124   21   14   2   21   16   (8)   4   (27)   222   140   71  
Fixed maturities   1,715   1,256   1,138   (63)   (94)   68   (180)   (31)   8   (51)   (5)   0   1,422   1,126   1,214  
Equities   297   243   254   833   594   412   52   60   101   (161)   (43)   (45)   1,021   854   723  
Non controlled investment funds   42   27   8   16   32   25   (4)   2   5   (32)   (2)   (5)   22   59   34  
Other assets held by consolidated investment funds designated as at fair value through profit & loss   13   8   1   3   0   1   75   (1)   10   -   -   -   91   7   12  
Loans   124   43   42   1   2   0   -   -   -   (0)   (0)   (4)   125   45   38  
Assets backing contracts where the financial risk is borne by policyholders   -   -   -   -   -   -   -   -   -   -   -   -   -   -   -  
Hedge accounting derivatives   -   -   -   -   -   -   (20)   6   (21)   -   -   -   (20)   6   (21)  
Other derivatives   (30)   6   1   40   (9)   5   50   18   (38)   -   -   -   60   15   (32)  
Investment management expenses   (161)   (118)   (108)   -   -   -   -   -   -   -   -   -   (161)   (118)   (108)  
Other   (46)   3   9   (1)   48   (35)   (49)   (23)   1   2   (1)   (4)   (94)   26   (29)  
NET INVESTMENT RESULT   2,059   1,562   1,414   953   594   490   (75)   50   82   (251)   (47)   (84)   2,687   2,159   1,902  

(a) Restated means the restatement of the Netherlands' activities as discontinued operations.

Previously published information was as follows:

                                    (in Euro million)  
    Net investment income   Net realized
investment gains
and losses
  Change in fair
value of financial
instruments at fair
value through
profit & loss
  Change in financial
instruments impairment
  Net investment
result excluding
financing expenses
 
(Years ended December 31)   2006
Published
  2005
Published
  2006
Published
  2005
Published
  2006
Published
  2005
Published
  2006
Published
  2005
Published
  2006
Published
  2005
Published
 
Investment properties   94   68   21   20   21   16   4   (27)   140   77  
Fixed maturities   1,287   1,170   (92)   71   (30)   8   (5)   0   1,159   1,250  
Equities   245   255   594   412   60   101   (43)   (45)   856   723  
Non controlled investment funds   27   8   32   25   2   5   (2)   (5)   59   34  
Other assets held by consolidated investment funds designated as at fair value through profit & loss   8   1   0   1   (1)   10   -   -   7   12  
Loans   44   43   2   0   -   -   (0)   (4)   46   39  
Assets backing contracts where the financial risk is borne by policyholders   -   -   -   -   -   -   -   -   -   -  
Hedge accounting derivatives   -   -   -   -   6   (21)   -   -   6   (21)  
Other derivatives   6   1   (9)   5   18   (38)   -   -   15   (32)  
Investment management expenses   (119)   (109)   -   -   -   -   -   -   (119)   (109)  
Other   (1)   5   48   (35)   (23)   1   (1)   (4)   23   (33)  
NET INVESTMENT RESULT   1,592   1,443   596   499   52   82   (47)   (84)   2,192   1,940  

56


The year-on-year commentaries below are based on the operating results of the segment before elimination of intercompany
transactions (refer to Note 3 "Segmental information" to the consolidated financial statements included in Item 18 of this Annual
Report on Form 20-F for further information).

YEAR ENDED DECEMBER 31, 2007 COMPARED TO YEAR ENDED DECEMBER 31, 2006

Gross revenues gross revenues were up 28% to €25,016 million net of intercompany transactions (or €25,180 million before the
elimination of intercompany transactions), or +4% on a comparable basis mainly driven by United Kingdom & Ireland (+8% to
€5,076 million), Mediterranean Region (+5% to €5,276 million), France (+3% to €5,330 million), and Germany (+2% to €3,506
million).

Net investment result amounted to €2,687 million in 2007. Excluding the contribution of Winterthur (€285 million), net
investment result was up €242 million mainly due to net investment income and net realized gains:

a) Net investment income amounted to €2,059 million in 2007. Excluding the contribution of Winterthur (€340 million), it
was up €+158 million mainly resulting from a €+161 million increase in income from fixed maturities.

b) Net realized investment gains amounted to €953 million in 2007. Excluding the contribution of Winterthur (€3 million),
they were up €356 million including €+230 million increase in realized gains on equities, of which €+110 million in the
Mediterranean Region and €+108 million in Germany due to higher net capital gains notably on equities.

c) Changes in fair value of financial instruments through profit and loss were €–75 million in 2007. Excluding the
contribution of Winterthur (€–24 million), it was a loss of €–51 million in 2007 compared to a gain of €+50 million in
2006. The 2007 change in fair value mainly resulted from a €59 million decrease in changes in fair value in France, and a
loss of €26 million in fixed maturities in Belgium mainly attributable to the impact of the credit spread increase on the
mutual funds market value.

d) Charges relating to financial instrument impairment amounted to €–251 million in 2007. Excluding the contribution of
Winterthur (€–33 million), it was a loss of €–218 million in 2007, mainly attributable to Germany and the United Kingdom
& Ireland.

Technical charges relating to insurance activities amounted to €–16,723 million in 2007. Excluding the contribution of
Winterthur (€–3,111 million), they increased by €915 million including €383 million in the United Kingdom & Ireland, €183
million in the Mediterranean Region and €181 million in Germany.

Net result on reinsurance ceded was a loss of €599 million in 2007. Excluding the contribution of Winterthur (€5 million), the
loss decreased by €25 million in 2007, including a €93 million decrease in Germany, partly offset by a €65 million increase in
France.

The current accident year loss ratio worsened by 3.1 points to 75.1% mainly driven by adverse claims experience, notably the
European storm Kyrill and United Kingdom floods. The all accident year loss ratio worsened by 1.2 points to 69.7% mainly
driven by the current accident year loss ratio worsening partly offset by positive developments on prior years.

In France, the current accident year loss ratio improved by 0.3 point to 74.3%, mainly driven by favorable claims experience in
Property (both Personal and Commercial lines) and natural events, partly offset by an increase on Personal Motor current accident
year net loss ratio. The all accident year net loss ratio improved by 0.7 point to 72.7% driven by the current year loss ratio and
higher level of positive loss reserve development in Property.

57


In Germany, current accident year loss ratio deteriorated by 4.5 points to 78.7%, mainly driven by natural events and higher large
claims impact. Excluding Winterthur, the current accident year loss ratio increased by 3.0 points to 77.2 % driven by the storm
"Kyrill" with an impact of 1.9 points in 2007 and higher large claims charge on Commercial Property and Liability lines
(Winterthur current accident year loss ratio amounted to 84.4%, of which the Kyrill impact amounted to 1.4 points). The all
accident year loss ratio increased by 1.2 points to 69.0%. Excluding Winterthur, the all accident year loss ratio increased by 1.8
points to 69.5%, due to the higher current accident year loss ratio, partly offset by a non recurring increase in claim handling costs
reserve in 2006 (Winterthur net technical result amounted to €236 million with an all accident year loss ratio of 66.7%).

In the United Kingdom, the current accident year loss ratio deteriorated by 8.1 points to 71.8%, mainly as a result of adverse
weather events, including Kyrill storm (€56 million, +1.1 points), the June and July floods (€271 million, +5.5 points) and 0.9
point higher loss ratio on U.K. Commercial lines. While Commercial lines remained profitable overall, market pressure, including
from new entrants, prevented rate increases from keeping up with claims inflation. The all accident year loss ratio increased by 4.6
points to 66.4%, as the adverse current accident year loss ratio was partially offset by favorable development in prior years
reserves development (€268 million in 2007).

In the Mediterranean Region, the current accident year loss ratio stood at 76.5% (–0.7 point). Excluding Winterthur, it
deteriorated by 0.8 point to 78.0%, mainly driven by an increase in motor personal lines (+2.0 points) following the strong new
business impact and the stable average premium (as compared to a 4% average weighed inflation rate). Winterthur current
accident year loss ratio stood at 71.1%. The all accident year loss ratio stood at 72.1% (–2.8 points). Excluding Winterthur, it
improved by 1.8 points to 73.0% thanks to the favorable development of claims reserves from previous year (€+115 million)
mainly focused on motor lines (€+138 million). The Winterthur all accident year loss ratio stood at 68.6%.

In Belgium, the current accident year loss ratio improved by 0.4 point to 77.6%. Excluding the contribution of Winterthur, the
current accident year loss ratio increased by 1.2 points to 79.2% mainly due to the Kyrill storm (2.1 points impact). Winterthur
current accident loss ratio amounted to 73.4% (0.8 point Kyrill impact). The all accident year loss ratio increased by 1.4 points to
67.5%. Excluding the contribution of Winterthur, the all accident year loss ratio increased by 2.5 points to 68.5%, reflecting the
unfavorable current accident year loss ratio and a decrease in prior years’ results (€–16 million). Winterthur all accident year loss
ratio amounted to 64.8%.

In Switzerland, the current accident year loss ratio stood at 77.6 % with a claim experience characterized by a very substantial
level of large losses (notably flood and hail events impacting both Motor and Property lines of business). The all accident year
loss ratio stood at 75.2% driven by positive reserve development in Health and Liability on prior years.

Acquisition costs amounted to €–4,652 million in 2007. Excluding the contribution of Winterthur (€–687 million), they increased
by €253 million, notably driven by a €102 million increase in the Mediterranean Region (in line with increased revenues and
impacted by integration costs), and a €60 million increase in the United Kingdom & Ireland.

Administrative expenses amounted to €–2,452 million in 2007. Excluding the contribution of Winterthur (€–505 million), they
increased by €121 million, including €50 million in the United Kingdom & Ireland, primarily relating to costs associated with new
acquisitions and initiatives together with higher fees to support significant growth within Health, and €22 million in Belgium, as a
result of integration costs and higher commissions.

Income tax expenses amounted to €–693 million. Excluding the contribution of Winterthur (€–83 million), tax expenses
decreased by €159 million compared to 2006, including a €83 million decrease in Belgium (due to lower pre-tax earnings), a €64
million decrease in the United Kingdom & Ireland (reflecting the deterioration in the pre-tax

58


result, and a €32 million benefit from a settlement on prior years, partly offset by a negative €18 million due to the decrease in
deferred tax assets following the reduction in the Corporate tax rate from 30% to 28%), and a €122 million decrease in Germany
(mainly due to a positive outcome of a tax audit on the ex-Albingia portfolio and a favorable impact of the new income tax rate
on deferred tax liabilities) partly offset by a €68 million increase in the Mediterranean Region (mainly driven by higher
pre-tax earnings).

Net income amounted to €2,218 million in 2007. Excluding the contribution of Winterthur in 2007 (€200 million), Property &
Casualty net income increased by €42 million driven by higher volumes of business and higher investment results driven by
increased invested assets, in spite of a deteriorated technical profitability (mainly due to major losses), as well as lower tax
charges notably in Germany, Belgium, and the United Kingdom and Ireland.

YEAR ENDED DECEMBER 31, 2006 COMPARED TO YEAR ENDED DECEMBER 31, 2005

Gross revenues (before elimination of intercompany transactions) increased by €919 million (+5%) to €19,600 million. Net of
intercompany transactions, Property & Casualty gross revenues increased by €911 million to €19,510 million, or €+885 million on
a constant exchange rate basis.

For a detailed analysis of Property & Casualty gross revenues, refer to Consolidated Gross Revenues section.

Net investment result increased by €258 million to €2,159 million mainly due to investment income and realized gains:

a) Net investment income rose by €147 million to €1,562 million or +10%, and mainly resulted from a €+117 million increase
in income from fixed maturities, spread over all countries and due to a higher asset base together with higher average
returns, as well as, to a lesser extent, from investment properties (€+26 million).

b) Net realized investment gains and losses increased by €+104 million, to €594 million (+21%), including €+181 million
increase in realized gains on equities (of which €+75 million in Belgium and €+77 million in the United Kingdom) and €79
million higher realized foreign exchange gains (of which €+86 million in France), partly offset by a €–162 million
reduction of net gains on fixed maturities (of which €–63 million in the United Kingdom and Ireland, €–46 million in
France, €–17 million in Germany and €–17 million in Belgium).

c) Changes in fair value of financial instruments through profit and loss were €+50 million in 2006 as compared to €82
million in 2005, including a €20 million decrease in Germany, mainly on fixed maturities.

d) Charges relating to financial instrument impairment decreased by €37 million to €–47 million, mainly on investment
properties.

Technical charges relating to insurance activities slightly increased (+4% or €511 million) to €12,697 million.

Net result on reinsurance ceded was a loss of €–629 million, an increase of €–64 million as compared to 2005. This result was
mainly attributable to the United Kingdom (€–52 million to €–152 million), resulting from the Buncefield explosion recoveries
included in 2005 and a favorable 2006 gross reserves result reducing the level of expected future recoveries.
The current accident year loss ratio was to 71.9% mainly driven by better claims experience. All accident year loss ratio was
68.5% driven by the current accident year loss ratio improvement and positive developments on prior years.

In France, the 0.7 point current accident year net loss ratio deteriorated to 74.6%, which was mainly driven by Property due to
both large claims and a higher cost of reinsurance, while the all accident year loss ratio was flat at 73.5% owing

59


to positive developments in Property, as in 2005, and in Motor (up €52 million to €16 million, as 2005 was negatively
impacted by a decrease in the annuity interest rate).

In Germany, current accident year loss ratio deteriorated by 2.0 points to 74.2%, driven by a higher large claims charge than the
very benign 2005 experience, and an increase of the claims handling costs provision to reflect higher unit costs. All accident year
loss ratio deteriorated by 2.0 points to 67.8% in line with the development of the current accident year loss ratio.

In the United Kingdom, the current accident year loss ratio improved by 1.5 point to 63.6%, driven by favorable claims
experience and benign weather in 2006, improved claims management and risk selection in Health, partially offset by higher
claims frequency on the Ireland Motor account combined with a reduction in average earned premiums. The all accident year loss
ratio improved by 1.3 point to 61.8%, broadly reflecting the favorable current accident year loss ratio.

In the Mediterranean Region, the all accident year loss ratio improved by 1.4 points to 74.8% mainly driven by strong
monitoring of personal motor portfolio. The current accident year loss ratio improved by 0.2 point to 77.2% mainly due to the
personal motor line of business, thanks to the favorable evolution of claims frequency and the continuous efforts to contain the
average claims cost.

In Belgium, the current year loss ratio improved by 3.3 points to 78.1% due to an improved claims pattern in all Personal Lines
(except Personal Accidents), Property, Health and Marine. The all accident year loss ratio improved by 4.0 points to 66.0% due to
the better current year loss ratio and to higher prior years’ results.

Acquisition costs increased by €385 million to €3,712 million, or +12% compared to 2005, including notably a €170 million
increase in the United Kingdom, largely relating to higher profit commission and increased volumes on higher commission related
to the delegated authority business, and a €55 million increase in Canada explained by higher commissions in relation to the
activity. The rest of the acquisition costs’ increase was due to higher revenues.

Administrative expenses decreased by 5% or €–89 million to €1,826 million, including €–77 million in Germany mainly
attributable to the release of some VAT provisions coupled with a VAT refund following the creation of a VAT group, as well as
the non-recurrence of several 2005 one-off expenses.

Income arising from equity accounted entities reached €+22 million, up €+19 million as compared to 2005, resulting from
AXA Affin General Insurance Berhad in Malaysia which was equity consolidated starting in 2006.

Income tax expenses increased by €215 million to €769 million including a €+72 million increase in the United Kingdom
(+111% on a current exchange rate basis) to €137 million due to the improved profit for the year and non-recurring one-off tax
provision movements in 2005. Other countries showed tax charges’ increases in line with pre-tax income changes.

Result from discontinued operations (net of tax) for 2006 and 2005 included the net income from the Dutch Property &
Casualty insurance operations, an increase by €20 million to €45 million compared with 2006.

Net income increased by €+239 million (or €232 million at a constant exchange rate) to €1,977 million, driven by improved
operating performance, combined with higher volumes of business, and higher investment results from both increased investment
income and realized gains. This was particularly true in Belgium (€+101 million net income), France (€+51 million net income),
and Mediterranean Region (€+53 million net income).

60


International Insurance Segment

The following tables present the gross revenues and net income for the International Insurance segment for the periods indicated.

CONSOLIDATED GROSS REVENUES

            (in Euro million)  
    FY 2007   FY 2006   FY 2005  
AXA Corporate Solutions Assurance   1,823   1,697   1,614  
AXA Cessions   69   57   60  
AXA Assistance   809   702   621  
AXA RE   -   -   1,460  
Other international activities (a)   1,002   1,355   147  
TOTAL (b)   3,703   3,811   3,903  
Intercompany transactions   (135)   (95)   (90)  
Contribution to consolidated gross revenues   3,568   3,716   3,813  

(a) Including €896 million in 2007 (€1,217 million in full year 2006) of business fronted by AXA RE and fully reinsured by Paris RE (fronting arrangement set in place from January 1, 2006 to September 30, 2007 in the context of the sale of AXA RE's business to Paris RE), AXA RE Life and AXA Liabilities Managers.

(b) Before elimination of intercompany transactions.

NET INCOME

                      (in Euro million)  
    Years ended December 31,  
    2007       2006       2005       Variation
2007 / 2006
 
AXA Corporate Solutions Assurance       125       117       97   7  
AXA Cessions       16       13       9   2  
AXA Assistance       19       22       43   (3)  
AXA RE       -       -       67   -  
Other international activities       84       92       (31)   (8)  
Contribution to net income       243       244       184   (1)  

In 2007, the International Insurance segment accounted for 4% of AXA’s consolidated gross revenues after elimination of
intercompany transactions (5% in 2006 and 2005). The International Insurance segment had a positive contribution to AXA’s
2007 consolidated net income of 4% (positive contributions of 5% in 2006 and 4% in 2005).

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ANALYSIS OF INVESTMENT RESULT

The following table summarizes the net investment results of the International Insurance operations by type of invested assets for
the periods indicated.

                            (in Euro million)  
    Net investment income   Net realized investment gains
and losses
  Change in fair value of
financial instruments at fair
value through profit & loss
  Change in financial
instruments impairment
  Net investment result
excluding financing expenses
 
(Year ended December 31)   2007   2006   2005   2007   2006   2005   2007   2006   2005   2007   2006   2005   2007   2006   2005  
Investment properties   7   6   0   0   0   13   -   -   -   -   -   0   7   7   14  
Fixed maturities   335   344   294   (31)   (29)   18   (29)   3   (3)   (1)   (0)   (0)   274   318   309  
Equities   16   16   19   35   102   28   14   3   8   (5)   (0)   (2)   61   121   52  
Non controlled investment funds   5   16   10   37   99   71   -   -   8   (1)   (1)   (1)   41   115   88  
Other assets held by consolidated investment
funds designated as at fair value through profit &
loss
  4   2   2   (0)   (0)   (2)   (0)   0   0   -   -   -   4   2   0  
Loans   31   18   26   0   -   -   -   -   -   -   -   -   31   18   26  
Assets backing contracts where the financial risk
is borne by policyholders
  -   -   -   -   -   -   -   -   -   -   -   -   -   -   -  
Hedge accounting derivatives   -   -   -   -   -   -   -   -   -   -   -   -   -   -   -  
Other derivatives   (1)   (1)   -   -   -   -   29   10   (17)   -   -   -   28   10   (17)  
Investment management expenses   (147)   (185)   (61)   -   -   -   -   -   -   -   -   -   (147)   (185)   (61)  
Other   104   84   68   (42)   (41)   18   23   18   (1)   0   (1)   0   85   60   85  
NET INVESTMENT RESULT   353   300   357   (0)   132   147   38   35   (6)   (6)   (2)   (3)   385   465   495  

62


AXA Corporate Solutions Assurance

            (In Euro million)  
    FY 2007   FY 2006   FY 2005  
Gross written premiums   1,811   1,684   1,599  
Fees and charges from investment contracts with no participating features   -   -   -  
Revenues from insurance activities   1,811   1,684   1,599  
Net revenues from banking activities   -   -   -  
Revenues from other activities   11   13   15  
Total revenues   1,823   1,697   1,614  
Change in unearned premiums net of unearned revenues and fees   (24)   (73)   (43)  
Net investment income   174   157   136  
Net realized investment gains and losses   46   34   36  
Change in fair value of financial instruments at fair value through profit & loss   (5)   6   4  
Change in financial instruments impairment   (5)   0   0  
Net investment result excluding financing expenses   211   198   175  
Technical charges relating to insurance activities   (1,317)   (986)   (1,160)  
Net result from outward reinsurance   (261)   (431)   (222)  
Bank operating expenses   -   -   -  
Acquisition costs   (130)   (110)   (113)  
Amortization of value of purchased business in force   -   -   -  
Administrative expenses   (91)   (97)   (90)  
Change in tangible assets impairment   (0)   (0)   -  
Change in goodwill impairment and other intangible assets impairment   -   -   -  
Other income and expenses   (0)   (0)   (0)  
Other operating income and expenses   (1,800)   (1,625)   (1,585)  
Income from operating activities before tax   210   197   161  
Income arising from investments in associates - Equity method   -   -   -  
Financing debts expenses   (11)   (13)   (13)  
Operating income before tax   198   184   149  
Income tax   (72)   (65)   (51)  
Net operating result   126   119   98  
Result from discontinued operations net of tax   -   -   -  
Net consolidated income   126   119   98  
Split between :
Net income Group share
  125   117   97  
Minority interests share in net consolidated income   2   1   1  

 

    Years ended December 31,   Variation  
    2007       2006       2005       2007 / 2006  
Gross revenues       1,823       1,697       1,614   125  
Current accident year loss ratio (net)       94.1%       88.7%       88.9%   5.5%  
All accident year loss ratio (net)       87.8%       87.3%       87.9%   0.5%  
Net technical result       220       207       189   13  
Expense ratio       12.3%       12.8%       12.9%   (0.5%)  
Combined ratio       100.1%       100.0%       100.9%   0.0%  

63


YEAR ENDED DECEMBER 31, 2007 COMPARED TO YEAR ENDED DECEMBER 31, 2006

Gross revenues increased by €125 million (or +7%) to €1,823 million gross of intercompany eliminations driven by favorable
portfolio developments in Marine, Property, Motor and Construction.

Net investment result excluding financial expenses increased by €13 million (or +7%) to €211 million due to a higher asset
base.

The net technical charges relating to insurance activities and net result from outward reinsurance increased by €161 million to €-
1,578 million mainly driven by higher large losses notably in Property.

As a consequence, the all accident year loss ratio increased by 0.5 point to 87.8 %.

Expenses increased by €14 million to €-220 million resulting from a commission increase (€+17 million to €106 million)
following both an activity growth and an exceptional impact in 2006 (the non renewal of a large motor contract with high
commission rate), and (ii) a slight general expenses decrease (€-3 million). As a consequence, the Expense ratio decreased by 0.5
point to 12.3%.

As a result, the combined ratio remained stable at 100.1%.

Income tax expenses increased by €7 million to €-72 million with the effective tax rate decreasing by 1.9 points mainly due to the
activation of past years tax deficits in Germany.

As a result, net income increased by €7 million to €125 million.

YEAR ENDED DECEMBER 31, 2006 COMPARED TO YEAR ENDED DECEMBER 31, 2005

Gross revenues increased by 5% to €1,697 million or €1,689 million net of intercompany transactions, driven by (i) strong
portfolio development in Property (€84 million) due to reinsurance program restructuring providing additional underwriting
capacities, (ii) an increase in liability (€26 million) and in construction (€19 million), partly offset by (iii) a decline in Marine and
Motor, as some risks were not renewed in the context of a softening market (€–45 million).

Net investment result excluding financial expenses increased by €23 million or +13% to €198 million, resulting from higher
fixed maturity revenues stemming from higher asset base.

Other operating income & expenses were up €40 million or +3% to €–1,625 million. Technical charges relating to insurance
activities decreased by €174 million to €–986 million due to the absence of significant events whereas 2005 was marked by major
losses. As a consequence, the net loss of ceded reinsurance increased by €–209 million to €–431 million. Acquisition costs
improved by €2 million to €–110 million and administrative expenses increased by €–6 million to €–97 million due to the
combination of commission drop and increased general expenses.

Operating income gross of tax increased by €35 million to €184 million resulting from the 0.8 point improved combined ratio
and higher net investment result.

64


Income tax expenses increased by €14 million to €–65 million as the result of higher taxable income.

Net income increased by €21 million to €117 million, reflecting an improvement of the combined ratio and a higher net
investment income.

AXA Cessions

YEAR ENDED DECEMBER 31, 2007 COMPARED TO YEAR ENDED DECEMBER 31, 2006

Gross revenues increased by €12 million to €69 million gross of intercompany transactions because of higher gross written
premiums. Net income increased by €2 million to €16 million resulting from higher net realized investment gains partly offset by
higher general expenses and income tax charge.

YEAR ENDED DECEMBER 31, 2006 COMPARED TO YEAR ENDED DECEMBER 31, 2005

Gross revenues decreased by €3 million to €57 million. Net income increased by €5 million to €13 million notably resulting
from a higher net technical result and a higher net investment income partly offset by an increase in general expenses.

AXA Assistance

YEAR ENDED DECEMBER 31, 2007 COMPARED TO YEAR ENDED DECEMBER 31, 2006

Gross revenues increased by 15% to €809 million gross of intercompany transactions mainly due to Home Serve business in the
United Kingdom (€+27 million), increased premiums in Travel business in Germany (€+15 million) and a good commercial
performance in France.

Other operating income and expenses increased by €115 million to €-781 million mainly due to an increase in technical charges
relating to insurance activities, acquisition costs and administrative expenses.

Net income decreased by €3 million to €19 million, resulting from the increase in expenses.

65


YEAR ENDED DECEMBER 31, 2006 COMPARED TO YEAR ENDED DECEMBER 31, 2005

Gross revenues increased by €81 million (+13%) to €702 million resulting from (i) increased business with car manufacturers
(France), and (ii) positive net new inflows on travel insurance (mainly Germany) and home services providers (France, United
Kingdom), as well as the gain of some major contracts in the United States.

Net investment result excluding financial expenses increased slightly by €3 million to €10 million mainly due to net investment
income.

Net income decreased by €21 million to €22 million mainly due to the non recurrence of the 2005 sale of CAS, a U.K. based
software company (net impact of €+23 million in 2005).

Other international activities

YEAR ENDED DECEMBER 31, 2007 COMPARED TO YEAR ENDED DECEMBER 31, 2006

Net income amounted to €84 million in 2007. Excluding Winterthur contribution (€19 million) and on a constant exchange rate
basis, net income decreased by €25 million (-27%) mainly as a result of (i) the non recurring €66 million gain after tax on the sale
of AXA RE's business in 2006 partly offset by (ii) the continuous favorable loss reserve development on some run-off portfolios
in 2007 together with lower reserve strengthening on Asbestos and (iii) €19 million improvement in Life run-off portfolio fully
explained by the cost of fully hedging the remaining exposure of this portfolio in 2006.

YEAR ENDED DECEMBER 31, 2006 COMPARED TO YEAR ENDED DECEMBER 31, 2005

On December 21, 2006, AXA RE’s business was sold to Paris Re Holding Limited, with the risks and corresponding net income
related to AXA RE’s 2006 claims experience accruing to Paris Re Holdings Limited. As a result, AXA RE’s contribution to AXA
consolidated accounts corresponds mainly to the result of the run-off of the 2005 and prior years reserves of AXA RE. This
contribution for fiscal year 2006 is presented as part of the “Other International Activities” segment.

Net income from Other International Insurance Activities increased by €123 million to €92 million, mainly reflecting (i) the
contribution of AXA RE run-off portfolio (€22 million driven by favorable claims experience on 2005 and prior years), (ii) a €43
million higher result on the other non Life run-off portfolios mainly due to the positive result generated by the commutation of
some large portfolios, and (iii) a €66 million gain after tax on the sale of AXA RE’s business.

66


Asset Management Segment

The Asset Management segment includes third-party asset management and asset management on behalf of AXA insurance
companies. The tables below present the revenues and net income for the Asset Management segment for the periods indicated:

CONSOLIDATED GROSS REVENUES

            (in Euro million)  
    FY 2007   FY 2006   FY 2005  
AllianceBernstein     3,277   3,102   2,587  
AXA Investment Managers   2,006   1,679   1,195  
TOTAL (a)   5,283   4,781   3,783  
Intercompany transactions   (420)   (375)   (343)  
Contribution to consolidated gross revenues   4,863   4,406   3,440  

(a) Before elimination of intercompany transactions.

NET INCOME

                (in Euro million)  
    Years ended December 31,   Variation  
    2007   2006   2005   2007 / 2006  
AllianceBernstein   313   394   254   (80)  
AXA Investments Managers   274   216     156     58  
Contribution to net income   588   610   411   (22)  

In 2007, the Asset Management segment accounted for 5% of AXA’s consolidated gross revenues after elimination of
intercompany transactions (6% in 2006 and 5% in 2005). The Asset Management segment had a positive contribution to AXA’s
2007 consolidated net income of 10% (positive contributions in 2006: 12%, and in 2005: 10%).

67


AllianceBernstein

The operating results for AllianceBernstein are presented below for the periods indicated. The information below is before any
elimination of intercompany transactions.

            (In Euro million)  
    FY 2007   FY 2006     FY 2005  
Gross written premiums   -   -   -  
Fees and charges from investment contracts with no participating features   -   -   -  
Revenues from insurance activities   -   -   -  
Net revenues from banking activities   -   -   -  
Revenues from other activities   3,277   3,102   2,587  
Total revenues   3,277   3,102   2,587  
Change in unearned premiums net of unearned revenues and fees   -   -   -  
Net investment income   22   44   -  
Net realized investment gains and losses   7   54   34  
Change in fair value of financial instruments at fair value through profit & loss   -   -   -  
Change in financial instruments impairment   -   -   -  
Net investment result excluding financing expenses   29   98   34  
Technical charges relating to insurance activities   -   -   -  
Net result from outward reinsurance   -   -   -  
Bank operating expenses   -   -   -  
Acquisition costs   -   -   -  
Amortization of value of purchased business in force   -   -   -  
Administrative expenses   (2,054)   (1,945)   (1,834)  
Change in tangible assets impairment   -   -   -  
Change in goodwill impairment and other intangible assets impairment   -   -   -  
Other income and expenses   (252)   (259)   (20)  
Other operating income and expenses   (2,306)   (2,204)   (1,854)  
Income from operating activities before tax   1,001   996   767  
Income arising from investment in associates - Equity method   -   -   -  
Financing debts expenses   (20)   (21)   (21)  
Operating income before tax   980   974   746  
Income tax   (317)   (216)   (207)  
Net operating result