Market Overview. September 23, 2004

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Market Overview

September 23, 2004

Market Overview

September 23, 2004

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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

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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

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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

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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*

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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%

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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

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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

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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%

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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%

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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 Financial

ING 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 Financial

9 John Hancock Financial Services IDS Life Phoenix Life Insurance Company Prudential Financial

10 Aegon USA

AXA Financial

Prudential Financial Travelers Life and Annuity

Source: LIMRA

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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

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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%

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Figure

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References

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