AXA Financial - Press Release - AXA's 2001 Cash Earnings* Are Estimated To Be Approximately Euro 1.2 Billion After Taking Into Consideration Impacts Of WTC Attacks, Permanent Impairments Of Assets And Lower Investment Results<br><br> 2002 Cash Earnings* Are Expected To Be Up Significantly Due To Improved Combined Ratio, Better Operating Efficiency And Return To More Stable Financial Markets

AXA's 2001 Cash Earnings* Are Estimated To Be Approximately Euro 1.2 Billion After Taking Into Consideration Impacts Of WTC Attacks, Permanent Impairments Of Assets And Lower Investment Results

2002 Cash Earnings* Are Expected To Be Up Significantly Due To Improved Combined Ratio, Better Operating Efficiency And Return To More Stable Financial Markets

PARIS — AXA estimated today that, after assessing the consequences of the WTC attacks, the impact of potential permanent impairments on assets and difficult market conditions, it was forecasting 2001 cash earnings* to be approximately Euro 1.2 billion.

This announcement is based on data available as of the end of November. Actual 2001 financial statements will be released on March 14, 2002.

A conference call is scheduled today at 10:00 AM (Paris time). Please refer to the end of this press release for further details.

The Group has been impacted by falling equity markets and market volatility throughout 2001, with significant deterioration in the immediate wake of September 11^th, which led us at that time to be cautious on 2001 earnings visibility. Additionally, the Group has been impacted directly by the World Trade Center tragedy, as disclosed on September 21^st, 2001.

*Cash earnings include the operating results on a New French GAAP basis but exclude one-off items and goodwill amortization (no one-off items are in 2001 forecast). Forecast assumes current market conditions will prevail at year-end.

Following the WTC attacks, there has been a material re-pricing of the financial markets which led to (i) an increase in the average risk premium built into equity prices and (ii) a widening of corporate bond’s spreads. In light of this prolonged market downturn, the Group has just completed a review of its securities portfolio (equities and bonds) to assess long-term impairment of such assets following US GAAP. This review could result, at year-end 2001, in reserves of approximately a net Euro 0.7 billion for long-term impairment. Provisions for long-term impairment have no impact on the Net Asset Value of the AXA Group.

Consequently, the contribution of net capital gains to cash earnings for the second half of the year is forecast to be a negative Euro 0.4 billion, including the effect of provisions for long-term impairment of assets.

Adjusted for forecast 2001 impairment, unrealized capital gains attributable to shareholders are estimated to be approximately Euro 4.8 billion as of the end of November vs. Euro 4.3 billion as of June 2001. On the same basis, the level of gross unrealized capital gains as of the end of November 2001 is approximately Euro 12.7 billion compared to the June 2001 reported level of Euro 11.4 billion.

The fall in equity markets and slowing global economies have negatively affected the Group’s average level of Assets under Management (both unit-linked and assets managed for third parties) and the growth in the Group’s Life & Savings premiums that was originally anticipated. Such combination has resulted, in spite of strong positive cash flows across our Life & Savings and Asset Management operations, in a cash earnings shortfall estimated to be approximately Euro 0.2 billion. First nine month 2001 average AUM for Alliance Capital and AXA Investment Managers were Euro 760 billion, slightly lower than 2000 average despite strong positive inflows, but higher than the AUM level as of October 31, 2001.

The Group’s 2001 combined ratio is estimated to be approximately 112% versus 114% in 2000. Commercial lines’ technical results in Germany, Belgium, the Netherlands and the UK have a negative impact on the Group’s overall combined ratio. Steps have already been taken to address these deviations. On the positive side, operations in other countries should be delivering better combined ratios and underline the Group’s commitment to sound technical results.

Excluding net capital gains and WTC net impact, Group cash earnings are estimated to be Euro 1.3 billion in 2001 compared to Euro 1.2 billion for 2000. On the same basis, 2001 cash EPS is estimated to be down approximately 2%.

Taking into account positive medium-term perspective, the Group anticipates maintaining its 2001 dividend per share at the same level as last year.

AXA’s strategy to achieve operating excellence and to develop a customer-centric, advice-driven organization remains the cornerstone of future growth and enhanced profitability.

1. Management believes that 2002 should be a recovery year and that the Group will benefit from:

On Tuesday, December 18^th, at 10:00 AM (Paris time), AXA Chairman of the Management Board Henri de Castries, Member of the Management Board and AXA Group CFO Gérard de La Martinière and AXA Executive Committee members Denis Duverne and Stan Tulin will lead a one-hour conference call to discuss 2001 forecast and 2002 trends.

AXA Group is a worldwide leader in financial protection and wealth management. AXA's operations are diverse geographically, with major operations in Western Europe, North America and the Asia/Pacific area. AXA had Euro 950 billion in assets under management as of June 30, 2001 and reported revenues of approximately Euro 80 billion for the full year 2000 (Euro 56 billion for the first nine months of 2001). The AXA ordinary share is listed and trades under the symbol AXA on the Paris Stock Exchange. The AXA American Depositary Share is also listed on the NYSE under the ticker symbol AXA.

Certain statements in this press release are forward-looking statements including, but not limited to, statements that are predications 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 and can be affected by other factors that could cause actual results and AXA’s plans and objectives to differ materially from those expressed or implied in the forward looking statements (or from past results). These risks and uncertainties include, without limitation, the risk of future catastrophic events including possible future terrorist related incidents. Please refer to AXA's Annual Report on Form 20-F for the year ended December 31, 2000 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.