Market Overview
September 23, 2004
Market Overview
September 23, 2004
French Media –September 23, 2004- 2
Agenda
Overview : US Market
Annuity Sales
Annuity Market Competition
AXA Financial Annuity Market Share and Rank
Life Sales
Life Insurance Market Competition
AXA Financial Life Insurance Market Share and Rank
Retirement: $7.8 Trillion Defined Benefit
Employee Sponsored Pension
Tax Sheltered Annuities Deferred Annuities
IRA’s Non-Retirement: $7.5 Trillion
Mutual Funds
Separate accounts Managed accounts Trusts
Endowments
Source: Merrill Lynch Research, Asset Management November 14, 2003
The US market has over $15 trillion in
managed assets
French Media –September 23, 2004- 4
AXA Financial is a leading asset manager in the U.S. market
America's top money managers
Rank AUM $B
2003 2002 Firm 2003 2002
1 2 State Street Global Advisors 1 100 763
2 3 Barclays Global Investors 1 070 746
3 1 Fidelity Investments 964 794
4 4 Capital Group Cos. 814 552
5 5 Citigroup 609 535
6 6 Mellon Financial Corp. 589 522
7 7 J.P. Morgan Fleming Asset Mgmt 559 516
8 9 AXA Financial (includes Alliance Capital) 547 430
9 10 Vanguard Group 503 410
10 8 Merrill Lynch Investment Managers 500 462
13 14 Prudential Financial 404 350
21 29 American Express Co. 304 191 Other
30 28 AIG Global Investment Group 230 193 U.S.
36 34 MetLife 177 162 Insurers
43 41 John Hancock Financial Services 142 127
102 95 Hartford Investment Mgmt Co. 31 28
Source: Institutional Investor, July 2004
Today’s investors are cautious and increasingly seeking financial advice
*Source: JP Morgan Chase survey, Fall 2003
¾ Today’s investors are concerned with:
9Outliving their investments 9Volatility of returns
9Impact of taxes
¾ Significant demand for advisor-assisted financial solutions 9Two-thirds of affluent investors are likely to use an
advisor within the next year*
French Media –September 23, 2004- 6
Mix of annuity sales between variable and fixed products is highly influenced by financial market conditions
Source: LIMRA, Total Premiums excluding internal replacements.
Total Annuity Sales - US
$163.5 $159.6 $160.0
$194.2
$216.8
74% 76% 62% 55%
60%
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
1999 2000 2001 2002 2003
$ in B illio n s Fixed
Variable 26% 24%
38%
45%
40%
Variable Annuity Market Competition
Top 10 Based on Market Share
Variable Annuity Top 10
2000 2001 2002 2003
1 AIG VALIC TIAA-CREF TIAA-CREF Hartford Life
2 ING Companies Hartford Life Hartford Life TIAA-CREF
3 TIAA-CREF AIG VALIC AIG VALIC AXA Financial
4 Hartford Life ING Companies ING Companies MetLife/NEF/GenAm/MLI
5 AXA Financial AXA Financial AXA Financial AIG VALIC
6 Nationwide Life Nationwide Life AEGON USA ING Companies
7 Pacific Life MetLife/NEF/GenAm/MLI MetLife/NEF/GenAm/MLI Pacific Life
8 The Travelers Lincoln National Life Insurance Nationwide Life Prudential of America 9 Lincoln National Life Insurance Pacific Life Pacific Life Nationwide Life
10 MetLife/NEF/GenAm/MLI The Travelers Lincoln National Life Insurance Lincoln National Life Insurance
Source: LIMRA
French Media –September 23, 2004- 8
Variable Annuity Market
AXA Financial Market Share & Rank
5.7% 5.7% 5.7%
6.5%
8.4%
5 5 5
5
3
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
1999 2000 2001 2002 2003
Rank
Market Share
5 Yr CAGR = 9.2%
Source: LIMRA
Fixed Annuity Market
AXA Financial Market Share & Rank
0.2%
0.3%
0.8% 0.9%
1.0%
64
31
30
25
26
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1999 2000 2001 2002 2003
Rank
Market Share
Source: LIMRA
5 Yr CAGR = 56.1%
French Media –September 23, 2004- 10
Protection needs and risk reduction have driven most life sales to fixed products.
Source: LIMRA, First Year New Annualized Premium excluding drop-in / optional premiums.
Total Life Sales - US
$7.3
$12.6 $12.4
$13.8 $14.5
18% 12%
30% 27%
40%
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
1999 2000 2001 2002 2003
$ in B illio n s
Fixed Variable
60%
70%
73%
82%
88%
Variable Life Insurance Market Competition
Top 10 Based on Market Share
Variable Life Top 10
2000 2001 2002 2003
1 Pacific Life MetLife/NEF/GenAm/Texas Pacific Life Pacific Life
2 MetLife/NEF/GenAm/Texas Pacific Life MetLife/NEF/GenAm/Texas MetLife/NEF/GenAm/Texas 3 ING Life Companies - U.S. John Hancock Financial Services John Hancock Financial Services IDS Life
4 Northwestern Mutual ING Life Companies - U.S. Nationwide Life Nationwide Life
5 Nationwide Life Nationwide Life ING Life Companies - U.S. Hartford Financial Services Group
6 Prudential Financial Prudential Financial
AXA FinancialING Life Companies - U.S.
7 IDS Life Northwestern Mutual IDS Life John Hancock Financial Services
8 Hartford Financial Services Group Hartford Financial Services Group Hartford Financial Services Group
AXA Financial9 John Hancock Financial Services IDS Life Phoenix Life Insurance Company Prudential Financial
10 Aegon USA
AXA FinancialPrudential Financial Travelers Life and Annuity
Source: LIMRA
French Media –September 23, 2004- 12
6.4%
4.9% 4.7%
5.4% 5.3%
5
11 10
6 8
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
1999 2000 2001 2002 2003
Rank
Market Share
Source: LIMRA
5 Yr CAGR = (13.6%)
Variable Life Insurance Market
AXA Financial Market Share & Rank
Fixed Life Insurance Market
AXA Financial Market Share & Rank
0.5%
0.1% 0.2% 0.2%
1.2%
49
50 46 44
23
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1999 2000 2001 2002 2003
Rank
Market Share
Source: LIMRA
5 Yr CAGR = 48.4%