Distribution Management the AXA Way: A Balanced Approach

Distribution Management the AXA Way: A Balanced Approach Stan Tulin AXA Financial Vice Chairman and CFO and Member of AXA Executive Committee January 26, 2005

Disclaimer and Cautionary Statements Concerning Forward-looking Statements Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and AXA s plans and objectives to differ materially from those expressed or implied in the forward looking statements (or from past results). These risks and uncertainties include, without limitation, the risk of future catastrophic events including possible future terrorist related incidents. Please refer to AXA's Annual Report on Form 20-F and AXA s Document de Référence for the year ended December 31, 2003, for a description of certain important factors, risks and uncertainties that may affect AXA s business. AXA undertakes no obligation to publicly update or revise any of these forwardlooking statements, whether to reflect new information, future events or circumstances or otherwise. January 26, 2005-2

Table of Contents AXA AXA in the US AXA in Japan Conclusion January 26, 2005-3

Distribution management is a key cylinder in AXA s strategy A world leader in Financial Protection with the ambition to beat local competition in selected markets through excellence in: Product Innovation Underwriting, Pricing, Claims Management, Investment Performance Distribution Management Quality of Service Leveraging Group Resources and Human Capital Productivity Drive Revenue Growth and Margins Superior Value Creation For All Stakeholders January 26, 2005-4

AXA continues to build on its diversified and strong distribution network Upgrade proprietary distribution AXA 2003 revenues by network Salaried salesforce 14% Brokers/IFA 39% Develop nonproprietary distribution Proprietary Distribution: 52% Globally, more than 36,500 distributors Agents 35% Direct 3% Others 3% Bank partnerships 6% Non- Proprietary: 48% January 26, 2005-5

AXA has a strong worldwide proprietary distribution & client platform, and plans to further develop & optimize this channel USA 6,700 own distributors 3 million Clients Germany 3,600 own distributors 4 million Clients Spain 3,900 own distributors 2 million Clients Italy 1,300 own distributors 2 million Clients France 8,000 own distributors 9 million Clients Over 50 million clients AXA s focus: Customer centric Recruit & develop experienced advisors Target market segments where sustainable competitive advantages can be gained Optimize expenses Australia / New Zealand 1,100 own distributors 3 million Clients UK 7 million Clients Belgium 600 own distributors 2 million Clients Japan 9,000 own distributors 6 million Clients Hong Kong 2,200 own distributors 1 million Clients January 26, 2005-6

Non-proprietary distribution focused on distribution agreements and joint ventures Full Ownership Bancassurance X Capital intensive Potential conflict of interest (capital allocation) Distribution Agreements Capital allocation similar to proprietary distribution Allocation of profits between manufacturer and distributor is key Innovative product leader Europe: BNP Paribas, ABN AMRO, HSBC, Citibank, BBVA, Abbey National, Britannia US: Merrill Lynch, Smith Barney, UBS Asia: Several partnerships with large Japanese banks (including recent agreement with Bank of Tokyo Mitsubishi) Joint-Ventures Co-Ownership of a separate entity to crosssell products Alignment of interests Governance is key Partnerships with #1 bank in Thailand, Indonesia, Philippines January 26, 2005-7

AXA s global multi-distribution platform is an organic growth engine Supported by: Global exchange of product innovations Leveraging expertise of individual companies across AXA Unique AXA brand The US and Japan represent 52% of AXA s 1H04 new business contribution* Benelux 28 Germany 17 UK 15 1H04 Life New Business Contribution*: 368 million Australia / Southern Europe HK 30 12 France 71 Japan 64 US 130 New Business Contribution is the present value of future profits at issue for new business *Before cost of capital January 26, 2005-8

AXA Advisors: Proprietary Distribution providing superior financial advice and solutions to clients Midwest 10 Branches 1,400+ Advisors Chicago Northeast 18 Branches 2,400 Advisors New York Western 20 Branches 1,500+ Advisors Southern 16 Branches 1,400+ Advisors Atlanta Dallas Includes Mony advisors January 26, 2005-10

AXA Advisors focus: Optimize sales force and product offering Optimize sales force Established minimum performance standards for production Sales productivity up 29% during 2003, as sales force decreased and life & annuity sales increased Retiree buy-out Over 600 buy-outs since 2002 resulted in orderly client transition and more efficient sales force support Expense Management Continue to capture operating efficiencies from MONY: closed duplicate offices, co-located advisors and optimized advisor support Products New 401(k) product being developed for 2005 launch Focus on high new business value life sales (Athena UL) USFL opportunity - clinically underwritten life insurance * Based on PCs (first year commissions measure) January 26, 2005-11

AXA Distributors: Wholesale distribution to wirehouses, banks and financial planners Provide accumulation, income and wealth transfer solutions to over 14,000 producing brokers Broker/Dealer & Wirehouses Merrill Lynch Smith Barney AG Edwards UBS Banks Wachovia Banc of America Chase Financial Planners Linsco Private Ledger ING Financial Partners Securities America Emphasize frequent client contact through multiple channels: external wholesalers, internal wholesalers, key accounts and axadistributors.com January 26, 2005-12

AXA Distributors focus: Broaden distribution and product innovation Broaden distribution Increase wholesaler headcount Plan to add nearly 50% more wholesalers in 2005, with heavy emphasis on developing the planner channel Improved internal sales support axadistributors.com and sales desk enhancements Channel expansion Financial Planner, BGA, Enterprise Funds Morgan Stanley distribution effective 2Q 05, approximately 9,000 reps Product Innovation Own the income marketplace #3 in VA sales with 7.6% market share,* #1 GMIB seller** Increased product development capacity and speed to market GMWB introduced in Q3 04 Accumulator 04 updated with spousal protection and GMAB option Updated Athena UL product launched in May 04 *Based on VARDS Q3 04 rankings **Based on VARDS 2003 rankings January 26, 2005-13

Aggressive development and optimization of balanced distribution AXA / MONY Advisors - Proprietary Capture operating efficiencies with MONY Improve productivity Focus on customer service AXA Distributors Non proprietary Grow the number of distribution agreements Increase penetration in Financial Planner channel Leverage MONY life wholesaling expertise January 26, 2005-14

Japan: Steady trend of deregulation is changing the competitive landscape Before 2002 2002 - today Future Lift barriers between life and non-life (1996) Allow securities firms to distribute insurance products (2000) First demutualization (2001) Allow banks to distribute a limited range of insurance products Individual Annuity Mortgage insurance Fully open 3 rd sector products (2002) Full deregulation on commission (2002) Full deregulation for banks insurance distribution Privatization of Japan Postal Office creating significant opportunities for flexible and innovative insurers, such as AXA Japan Strong focus on developing products for growing markets (variable annuities, innovative savings products, medical) January 26, 2005-16

AXA Japan s new distribution look AXA Advisors (Proprietary) AXA Partners AXA Corporates & Agents AXA New Markets Major Products Medical, Term 1 Medical, Group 2 Term 4 Savings 3 Customers SMEs & CCI s Mega Corporations & Large Agents Large Corporations & Agencies Mega & Regional Banks No. of distributors 5,500 tied sales force 30 in-house agents Approx 3,000 agents 12 out of top 30 banks as partners No. of clients / partnerships 1 million SMEs 30 mega corporations 1,700 large corporations Market Share 2003 NB APE Individual business 5.7% of SMEs; lead manager for 76% of CCIs $326mm 1: includes Increasing Term Rider/Product for CCI corporate customers, 2: Group Life/Pension 3: Individual Annuity/Endowment, Approx 20% in medical market $65mm 19.5% of Large Corporations $96mm 4: Increasing Term Rider/Product APE includes all individual business & is based on average exchange rate of $1 = Y119.34 from 10/1/02 9/30/03 Source:Diamond Weekly Diamond 27 3.1% of Bancassurance $39mm January 26, 2005-17

AXA Japan is one of the industry s productivity leaders and plans to further increase its advantage Prudential SONY T&D AXA Nissay Mitsui AIG Edison AIG Star Gibraltar (Prudential) Asahi Productivity /Month 1.546 1.061 0.706 0.596 0.541 0.491 0.483 0.412 0.382 0.308 # of Sales Reps 2,159 4,262 14,002 5,769 57,141 11,620 4,868 3,137 5,536 18,218 Productivity Index 259% 178% 118% 100% 91% 82% 81% 69% 64% 52% 200 150 100 2003 Actual * Productivity measured as NB APE per sales rep (million yen per month). Derived from AXA Internal analysis. Productivity derived from public statistics provided in 2003 with amendments. AXA figures based on actual sales reps between Oct 2003 and March 2004 and NB APE from Oct 2002 and Sept 2003. 50 0 Sales Productivity Index* 100% + 180% by 2007 115% 2004 Actual by focusing on improving recruitment, training and activity management % 180% 2007 Target January 26, 2005-18

Bancassurance is a rapidly growing market in which AXA is a new challenger The bancassurance market is estimated to reach $485 billion by 2010 annual sales growth of 30% per annum Bancassurance partnerships are mainly distribution agreements, non exclusive in nature, similar to the U.S. AXA Japan has successfully built a growth platform with 12 large bank partnerships representing 3.1% market share* Bank of Tokyo Mitsubishi distribution agreement in Nov 2004 AXA Japan has a competitive advantage in bancassurance: Leverage AXA Group s expertise in wholesale distribution State-of-the-art IT platform Experienced sales staff (> 10 years average experience) AXA brand - represents financial strength and credibility in Japan Strong product innovation *Source:Diamond Weekly Diamond 27 Based on exchange rate on 12/31/04: $1 = Y103 January 26, 2005-19

AXA Japan focus: Innovative product development supports bancassurance distribution October 2002: Start with Yen fixed annuity as our basic product November 2004: Innovative foreign currency annuity product leveraging our European experience Product mix of bancassurance market Product mix of bancassurance market YEN Fixed Annuity 23% Foreign Currency Fixed Annuity 22% Variable Annuities 55% Late 2005: New VA product by leveraging Group expertise in US AXA Japan s Market Penetration January 26, 2005-20

AXA Japan aims to grow new business volume by 50% in total by 2007 AXA New Markets AXA C&A* AXA Partners AXA Advisors +50% APE by 2007 AXA New Markets AXA C&A* AXA Partners AXA Advisors 2004 AXA Year basis 2007 Proprietary Growth Drivers Increase productivity for AXA Advisors Focus on recruitment & training Non-Proprietary Growth Drivers Broaden bank distribution agreements Introduce innovative new products Note: *AXA C&A = AXA Corporates and Agents Source: AXA internal data January 26, 2005-21

Distribution management is just one opportunity in the 5 cylinders strategy A world leader in Financial Protection with the ambition to beat local competition in selected markets through excellence in: Product Innovation Underwriting, Pricing, Claims Management, Investment Performance Distribution Management Quality of Service Leveraging Group Resources and Human Capital Productivity Drive Revenue Growth and Margins Superior Value Creation For All Stakeholders January 26, 2005-23

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