PR Newswire/Les Echos/
NEW YORK, 10 April 2012
AXA Financial signs closed MONY portfolio transaction with Protective for USD
* Transaction supports AXA's capital optimization strategy and further growth
in the US
* Total consideration of USD 1.06 billion / Euro 0.82 billion(1)
AXA today announced it had entered definitive agreements with Protective Life
Corporation ("Protective") to sell MONY Life Insurance Company ("MONY") and to
reinsure an in-force book of life insurance policies written by MONY's
subsidiary MONY Life Insurance Company of America ("MLOA") primarily prior to
2004. Under the terms of the agreements and assuming a closing date of October
1, 2013, the total cash consideration will be USD 1.06 billion (or Euro 0.82
billion). This consideration corresponds to implied 2012 multiples of 12x IFRS
underlying earnings and 1.7x IFRS TNAV(2).
At closing, Protective has indicated that they plan to retain all positions
associated with MONY's customer service and administrative platform in
Syracuse, NY, and will assume responsibility for servicing MONY and in-scope
MLOA policies, as well as the servicing agreement with AXA Business Services.
Policyholders under the MONY and MLOA policies that are subject to the
transaction will see no changes in their terms or the level of service.
"This transaction is in line with AXA's active capital management strategy and
in-force optimization initiatives. It allows us to generate financial resources
from a closed portfolio and to remain focused on our national distribution
structure and network of more than 5,000 financial professionals and more than
650 distribution firms partnering with us to further accelerate our profitable
growth in our core businesses of financial protection, employer-sponsored
products and retirement savings," said Mark Pearson, President and Chief
Executive Officer of AXA Financial.
"The best way to create long-term sustainable value for all stakeholders is to
stay focused on businesses that have the right combination of scale, competitive
position, cash generation and growth prospects, and I am very grateful to our US
teams for their excellent work negotiating this transaction and dedication to
achieving the Ambition AXA objectives," said Henri de Castries, Chairman and
(1) EUR 1 = USD 1.29, as of April 5, 2013
(2) IFRS Tangible Net Asset Value = IFRS shareholders' equity + off balance
sheet net unrealized capital gains and losses - net intangible assets
AXA - PRESS RELEASE
Executive Officer of AXA. "This transaction aiows us to further grow our US
business where we have been achieving good momentum while freeing up capital
invested in closed portfolios to improve our financial flexibility and enable
additional investment in high growth markets and businesses."
TRANSACTION SUPPORTS AXA'S CAPITAL OPTIMIZATION STRATEGY AND FURTHER GROWTH IN
In 2004, AXA Financial(3) acquired The MONY Group Inc. and its subsidiaries,
including MONY, MLOA, U.S. Financial Life Insurance Company and Advest(4) for
USD 1.5 billion. The MONY Group Inc. was formed and went public in 1998 as part
of the demutualization of the Mutual Life Insurance Company of New York, a
mutual life insurance company founded in 1842. Subsequent to the acquisition,
most new business was written out of other AXA Financial subsidiaries and
MONY/MLOA were effectively placed in run-off, with the exception of some new
business at MLOA, which is excluded from the transaction. Since 2005, MONY has
generated USD 1.0 billion of cumulated statutory net income.
AXA is therefore disposing of a run-off mortality book primarily underwritten
before 2004, with USD 10.5 billion (or Euro 8.0 billion) of statutory
liabilities as of end of 2012. The book is comprised(5) of approximately 560,000
whole life, term life, Variable Universal Life and Universal Life policies; it
also includes 61,000 annuity contracts and 42,000 Accident & Health and other
The MLOA legal entity, as well as all the other MONY subsidiaries and
distribution network, are outside the scope of the transaction. MLOA will
continue to be used to write new business and will retain part of the
transaction proceeds to fund its future growth.
IMPACTS FOR THE AXA GROUP
Full year 2012 IFRS underlying earnings of disposed operations were ca. Euro 70
Estimated impacts on AXA expected after the closing:
* Exceptional capital loss below Euro 0.1 billion, which will be accounted for
in Net Income, including a reduction in intangible assets of ca. Euro 0.4
* +3 points on Solvency I ratio, which was 233% at December 31, 2012;
* +4 points on Economic Solvency ratio, which was 206% at December 31, 2012;
* -1 point on debt gearing, which was 26% at December 31, 2012.
This transaction is subject to customary closing conditions, including the
receipt of regulatory approval, and is expected to close later this year.
(3) AXA Financial is a holding company for AXA US Life & Savings and Asset
(4) In 2005, AXA sold MONY's brokerage subsidiary Advest to Merrill Lynch for
USD 0.4 billion
(5) As of December 31, 2011
ABOUT AXA FINANCIAL
AXA Financial is one of the
premier U.S. organizations in financial protection and wealth management through
its strong brands:
* AXA Equitable Life Insurance Company
* AXA Advisors, LLC
* AllianceBernstein, L.P
* AXA Distributors, LLC
ABOUT AXA EQUITABLE
In business since 1859, AXA Equitable Life Insurance Company (NY, NY) is a
leading financial protection company and one of the nation's premier providers
of life insurance, annuity, and financial products and services. The company's
products and services are distributed to individuals and business owners through
its retail distribution channel, AXA Advisors, LLC (member FINRA, SIPC) and to
the financial services market through its wholesale distribution channel, AXA
Distributors, LLC. In 2012, AXA Equitable generated Annual Premium Equivalent
(APE) of Euro 1.2 billion (up 14% vs. 2011) and Life & Savings Underlying
Earnings of Euro 0.5 billion (vs. Euro 0.2 billion in 2011).
Find AXA Equitable on Facebook and Twitter or visit our website at
AXA Equitable Media Relations (New York):
Discretion Winter: 212-314-2968
ABOUT THE AXA GROUP
The AXA Group is a worldwide leader in insurance and asset management, with
160,000 employees serving 102 million clients in 57 countries. In 2012, IFRS
revenues amounted to Euro 90.1 billion and IFRS underlying earnings to Euro
4.3 billion. AXA had Euro 1,116 billion in assets under management as of
December 31, 2012.
The AXA ordinary share is listed on compartment A of Euronext Paris under
the ticker symbol CS (ISN FR 0000120628 - Bloomberg: CS FP - Reuters:
AXAF.PA). AXA's American Depository Share is also quoted on the OTC QX platform
under the ticker symbol AXAHY.
The AXA Group is included in the main international SRI indexes, such as
Dow Jones Sustainability Index (DJSI) and FTSE4GOOD.
It is a founding member of the UN Environment Programme's Finance
Initiative (UNEP FI) Principles for Sustainable Insurance and a signatory of the
UN Principles for Responsible Investment.
THIS PRESS RELEASE IS AVAILABLE ON THE AXA GROUP WEBSITE
Mattieu Rouot: +18.104.22.168.46.85
Jennifer Lejeune: +22.214.171.124.39.27
Yael Beer-Gabel: +126.96.36.199.47.93
Florian Bezault: +188.8.131.52.59.17
Clémence Houssay: +184.108.40.206.73.22
Varvara Romanenco: +220.127.116.11.73.63
Individual Shareholder Relations:
Garance Wattez-Richard: +18.104.22.168.46.42
Guillaume Borie: +22.214.171.124.49.98
Hélène Caillet: +126.96.36.199.55.51
IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING
Certain statements contained herein are forward-looking statements including,
but not limited to, statements that are predictions 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. Please refer to the section "Cautionary statements" in page 2
of AXA's Document de Référence for the year ended December 31, 2012, 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 forward-looking statements, whether to reflect new information,
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