AXA Financial signs closed MONY portfolio transaction with Protective for USD 1.06 billion

Wed Apr 10, 2013 8:05pm EDT

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- Transaction supports AXA's capital optimization strategy and further growth in
the US

NEW YORK,  April 10, 2013  /PRNewswire/ -- 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.

Pearson added, "Protective has a proven history of successfully managing these
types of closed book transactions, and this, together with their decision to
retain the current MONY policy administration team, means that MONY and MLOA
policyholders will continue to receive high levels of professional service."

"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
Chief Executive Officer of AXA. "This transaction allows 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."


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.


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.


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


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


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


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 Reference 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,
future events or circumstances or otherwise.

(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

(3) AXA Financial is a holding company for AXA US Life & Savings and Asset
Management activities

(4) In 2005, AXA sold MONY's brokerage subsidiary Advest to Merrill Lynch for 
USD 0.4 billion

(5) As of  December 31, 2011

SOURCE  AXA Financial; AXA; AXA Equitable

AXA Equitable Media Relations (New York): Discretion Winter: 212-314-2968,, Investor Relations: Mattieu Rouot:
+, Jennifer Lejeune: +, Yael Beer-Gabel:
+, Florian Bezault: +, Clemence Houssay:
+, Varvara Romanenco: +; Individual Shareholder
Relations: +; Media Relations: Garance Wattez-Richard:
+, Guillaume Borie: +, Helene Caillet:

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