Fundamental Credit Research
Summary Opinion
Published 7 Mar 2000

AXA Collectives

Paris, France

Ratings and Contacts

Category	Moody's Rating
Insurance Financial Strength	Aa3

Analyst	Phone
Damien Regent/London	44.20.7772.5454
Jean-Luc Lepreux/Paris	33.1.53.30.10.47
Mark Hewlett/London

Operating Statistics

AXA Collectives[1]

In FRF million	1998	1997	1996	1995	1994
Gross Premium Income -- Life Business	11,748	1,940	1,685	2,023	1,611
Gross Premium Income -- Casualty & Health Business	11,652	2,100	1,895	--	--
Net Investment Income	3,673	419	430	358	296
Realised Capital Gains/Losses after Reserves Adjustments	2,997	75	121	-63	64
Net Benefits and Claims	17,248	2,908	2,600	1,232	1,203
Gross Acquisition and Administration Expenses	2,381	469	431	245	200
Net Technical Result -- Life Business	-94	121	145	-25	-22
Net Technical Result -- Casualty & Health Business of Composite Insurers	475	-87	-52	--	--
Pre-tax Profit/Loss	701	55	123	-8	29
After-tax Profit/Loss	427	-33	103	-8	34

[1] As of December 31.

Balance Sheet Statistics

AXA Collectives[1]

In FRF million	1998	1997	1996	1995	1994
Total Assets	107,274	14,258	11,492	6,248	6,088
Invested Assets & Cash	91,419	11,834	9,450	5,063	5,292
Gross Technical Provisions	94,578	10,535	9,231	5,076	4,639
Equity Capital & Reserves	6,008	963	1,053	421	430
Unrealised Capital Gains	12,985	1,124	778	315	--
Adjusted Equity Capital & Reserves as a % of Adj. Non-Linked Assets	17%	15%	16%	13%	--

[1] As of December 31.

Opinion

Rating Rationale

Moody's Aa3 insurance financial strength rating on AXA's 6 main French insurance operating companies recognises the strategic nature of the business for the group, AXA's solid franchise in France, and the benefits of a well-diversified international insurance group. The AXA group itself was built-up from a succession of mergers and take-overs initiated in the early 1980s from French regional mutuals. AXA is today the 2nd life insurance group in France in terms of technical provisions.

AXA's French insurance operations are currently organised by distribution channel (tied agents; brokers; AXA's own salesforce and specialised networks), with for each channel both a life/health and a non-life insurance company. The 6 companies are the result of a number of mergers and business transfers, as AXA integrated in 1997-1998 the operations of UAP. Four mutuals also write insurance business but are not consolidated; they control part of the capital of AXA S.A.

AXA Collectives distributes life and health insurance through brokers. It enjoys a good product mix and a solid market position in the brokerage market

Rating Outlook

The outlook is stable.

Recent Events

At the end of 1999, AXA announced the launch of a strategic review of its French business which would lead to a more client-driven organisation. The company intends to explore the distribution of a broader range of products with selected partners. In 1999, AXA's total life insurance premium income in France increased by 9.1% on a comparable basis.